For the last few decades, cities have been at the forefront of climate action. Local governments everywhere are focused on how they can apply their financial resources, planning and regulatory powers, and coordinating roles to accelerate the greening of their communities. Investors and companies that pivot to the development of sustainable cities will position themselves for long-term success over the coming decades.
Between now and 2030, building out the global sustainability transition will require investments in the order of US$6 to $9 trillion per year. The infrastructure for the post-fossil-fuel economy will be built mostly in cities and will lean heavily into information technologies, digitization and electrification. When it has run its course, that transformation will have affected every aspect of urban living, including buildings, transportation, water supply, waste reduction and energy.
The leaders in the Corporate Knights Sustainable Cities Index are the vanguard of the urban transition that is now fully underway. The examples below provide estimates of the investment opportunity in three critical segments: green buildings, zero-emission transportation infrastructure and smart microgrids.
Green buildings
$1.5-trillion global investment/year
City government role: Regulations and permitting, green development standards.
Example: The Stack is Vancouver’s first commercial zero-carbon office tower. Developed by Oxford Properties and completed in fall 2022, the 540,000-square-foot building is certified zero carbon by the Canada Green Building Council. At 37 storeys, it’s the city’s tallest building.
Zero-emission transportation
$2-trillion global investment/year
City government role: Direct investment, planning approval and coordination.
Example: Engineering firm WSP and the City of Stockholm are expanding the Tramway City network, connecting the suburbs to the city centre. The BREEAM Infrastructure–certified project will cover almost 16 kilometres and is expected to carry 63,000 passengers daily by 2030.
Smart microgrids
$1-trillion global investment/year
City government role: Bylaws, regulations, permits affecting local distribution of electricity, siting of facilities.
Example: Each newly built home in the subdevelopment of Durango at Shadow Mountain, outside of L.A., is connected to a microgrid and outfitted with a 13 KWh battery, EV charger, rooftop solar array and smart thermostat. The Schneider Electric Square D Energy Center manages the home’s energy circuit to enhance resilience from the larger grid.
