2. CONTRIBUTORS
RITWAJIT DAS - Sustainability Specialist, Erasmus Fellow Institute for
Housing and Urban Development Studies (IHS), Erasmus University,
Rotterdam and MBA (Environmental Management), IIFM Bhopal.
MAKING CITIES WORK-
SUSTAINABLE GROWTH AND
SUSTAINABLE CLIMATE
POLICY INSIGHT
Photo Source- Hong Kong, Ritwajit Das, EVI
3. GROWING CITIES
Parallax Error Initiative works with the governments, international de-
velopment organizations and industries in public & private sector to
deliver consultancy services across the spectrum of sustainable de-
velopment issues such as climate change, sustainable urban devel-
opment, renewable energy, energy efficiency and natural resource
management.
Parallax Error Initiative has comprehensive understanding and in-
sight on sustainability and functioning of cities as growth engines for
development. Parallax Error Initiave has successfully demonstrated
solution based models for complex, multi-facets and highly inter-
linked low carbon strategies having medium to long-term multiplier
spin-offs.
2
Photo Source- Ulan Bator, Ritwajit Das, EVI
PARALLAX ERROR INITIATIVE AND INTEGRATED SUSTAINABLE URBANIZATION-
POLICY INNOVATION, DELIVERING EXCELLENCE AND ENVISIONING FUTURE
4. Making Cities Work
Sustainable Growth and Sustainable
Climate
Cities are crucial and engine drivers for
economic escalation and climate interven-
tions. Urban and built areas are home to
65% of the world’s population, but contrib-
ute around 85% of global economic output
(1) and around 77% of global energy use
and energy-related GHG emissions (2). In
next 20 years, nearly all of the world’s net
population growth is expected to occur in
urban areas, with about 1.8 million people
– close to the population of Stockholm –
added each week (3). By 2050, the urban
population is expected to reach gigantic
figure of 2.5 billion, reaching two-thirds of
the global population.
The motivation and wager for growth, qual-
ity of life and carbon emissions could not
be higher considering the present context.
The collective urban infrastructure and its
extended built-up structures we build now,
including urban land infrastructures, ports,
industries, transport systems, roads and
buildings, will last for more than 100 years
3
Photo Source- Hong Kong, Ritwajit Das, EVI
6. How we build, rebuild, maintain and enhance the
world’s growing cities will be extraordinarily critical.
or more, fixing the trajectory for GHGs emissions at a critical time
for reining these Given the long –tailed and long-lived nature of
urban infrastructure, the way in which we visualize ideas on ur-
ban development and the idiosyncrasies on how we build, re-
build, maintain and enhance the world’s growing cities will be ex-
traordinarily critical. It will not only determine the economic per-
formance of our cities it will also affect the quality of life for urban
citizens; it may also define the trajectory of global GHG emis-
sions for much of the rest of the century. We need a way out how
we are visualizing our cities from now on and how we must build
them because the spin-offs associated with it can alter economic
and climate attributes in a unidirectional way. Our cities’ ever in-
creasing contribution to both economic growth and climate
change, needs to be changed in a sustainable way and this
change must be inculcated into policy visualization, formulation
and implementation from now on, and an alternative pathway, as
well as the economic and socio-political drivers required to sup-
port it must be identified and scaled up.
The next big anticipated city development attributes and its exten-
sion must be all inclusive and holistic. The policy makers and
think tanks both at international and national level must segregate
the cities into the basis of financial, demography and service
types (social, political, cultural and economy).
5Photo Source- Paris, Ritwajit Das, EVI
7. Specific Cities - Specific Scenarios.
We focus in particular on three catego-
ries of cities:
Growing cities or Emerging Cities are
285+ speedily growing middle income,
mid-sized cities in China, India and other
developing and emerging economies,
with populations of 1–10 million, and per
capita incomes of US$1,500–22,000.
Cosmopolitan Cities or Global Megaci-
ties are 30+ major knowledge-, service
and trade-based urban focal points and
hubs with populations above 10 million
and per capita incomes over US$2,000,
including capital cities such as London,
Beijing and Tokyo.
Established Cities or Mature Cities are
140+ prosperous, time-honoured, tradi-
tional, mid-sized cities in advanced or
developed countries, with per capita in-
comes above US$20,000, such as Rotter-
dam, Stuttgart, Stockholm and Hi-
roshima.
On current trends (4), these cities com-
bined will account for 60% of global GDP
growth between 2014 to 2030.They will
cumulatively contribute 50% of world en-
ergy intensity and GHGs emission.
Around 290+ emerging cities, with popu-
lations between 1 million and 10 million,
will account for over half of world’s eco-
nomic growth and emission disburse-
ment.
6Photo Source- Rotterdam, Ritwajit Das, EVI
GROWING CITIES
COSMOPOLITAN CITIES
ESTABLISHED CITIES
8. The question for city based authorities like (Urban Development Authorities like
Mayors, Commissioners etc.), as well as for policy-makers in economics, finance,
urban planning and environmental ministries, is how to plan urban development in
points of parity with sustainability multipliers which will improve economic perform-
ance and quality of life while reducing GHGs emissions.
An unprecedented share of urban
growth in major parts of the world in-
volves unplanned, unstructured urban
expansion, with low densities and high
rates of car use especially in developing
and emerging economies. If contempo-
rary development pattern and tendency
were to continue, the global area of ur-
banized land could triple from 2000 to
2030 (5) the equivalent to adding an
area greater than the size of Manhattan
every day. At the same time, the number
of cars could double, from 1 billion today
to 2 billion (6).
This rambling mould of expansion has
huge implications and costs. It will dou-
ble land used per housing unit, enhance
the costs of providing utilities and public
services by 15–35% or more, and in-
crease motor/vehicle travel and associ-
ated costs by 20– 50% (7). In rapidly-
growing low- and middle-income coun-
tries, incoherent patterns can actually en-
hance co-costs to four to five times, be-
cause they often have to import construc-
tion equipment. This rambling mould and
incoherent patterns will results in supe-
rior congestion, accident and air pollu-
tion costs; locks in inefficiently high lev-
els of energy consumption, and makes it
harder to implement more efficient mod-
els of waste management and district
heating.
7
Photo Source- Amersfort, Ritwajit Das, EVI
9. New modeling according
from the New Economy Climate - Global Green Growth Institute sug-
gested that the incremental external costs of rambling mould and in-
coherent patterns of urban development in the United States are
about $400 billion per year, due to increased costs of providing pub-
lic services, higher capital requirements for infrastructure, lower over-
all resource productivity, and accident and pollution damages (8).
Costs can frantically escalate in rapidly urbanizing countries where
resources are limited compared to population growth. In China, ur-
ban rambling mould and incoherent patterns has condensed produc-
tivity gains from agglomeration and specialization, and led to series
of multipliers with much higher levels of capital spending more than
requirement to sustain growth (9).
In 261 Chinese cities, the labour productivity would rise by 8.8% if
employment density gets doubled (10). Some recent analysis re-
viewed by bilateral agencies have some interesting analogies, cities
around the world have noteworthy and significant opportunities in
the coming 5–10 years to boost resource productivity and reduce
GHGs emissions through economically attractive investments in the
buildings, transport and waste sectors.
8
However, without broader strate-
gic and extensive structural shifts
in the area of urban design and
transport systems, the benefits as-
sociated with those measures
would quickly be engulfed by the
negative aftermath of rapid eco-
nomic and population expansion
under business-as-usual patterns.
Photo Source- Cape Town, Ritwajit Das, EVI
10. In fast-growing Emerging Cities in particular, the substantiation
suggests energy savings and emission reductions could be
erased within seven years or less (11). Thus, to unlock a new cas-
cade of sustained, long-term urban productivity improvements,
we need a strategic systemic shift to energy and emissions vary
widely between cities with similar income levels, depending on
past infrastructure and planning decisions with direct linkages in
compactness, connectedness and over all coordinated develop-
ment. Barcelona is one of the city which is definitely tinkering with
right ideas and correct sets of attributes right now. Cities that
meet these criteria are more pragmatically productive, socially
all- inclusive, resilient, cleaner, quieter and safer. They also have
lower GHGs emissions – a good instance of the benefits of pursu-
ing economic growth and climate change mitigation together.
9
Photo Source- New Delhi, Ritwajit Das, EVI
LONG TERM URBAN PRODUCTIVITY
11. WHAT COULD BE A BETTER MODEL
FOR URBAN DEVELOPMENT
Photo Source- Cape Town, Ritwajit Das, EVI
12. The substitute for disrupted entropy, unstructured, unplanned
and urban expansion is a more competent urban development
model, based on comprehensively managed growth which en-
courages advance spatial densities, mixed and match-use of
neighborhoods, walk able and pedestrian friendly local environ-
ments, and – in Global Megacities and Mature Cities – the re-
vitalization and re-development of urban centres injecting them
with sustainability factors and brownfield sites, complemented by
green spaces. This model has strong penchant for high-quality
(technology, style and socio-cultural attributes) public transport
systems to make the most of positively responsive compact ur-
ban forms and to reduce car dependence and congestion. This
model will enhance the heighten resource efficiency through
“smarter” - “ITC related utilities” and buildings. It has the extraor-
dinary scope and huge potential to reduce urban infrastructure
capital requirements by more than USD 3 trillion over the next 15
years (12). Fast-growing Emerging Cities and small urban areas
can strategically shift themselves for such an opportunity to
adopt this model from the outset, learning from others’ experi-
ence. Strategic shifting towards this alternative model will release
and open avenues for untapped significant medium- to long-term
economic, social benefits and their associated spinoffs. It will en-
courage infrastructure productivity through the agglomeration ef-
fects of greater well structured density, improve air quality, and
deliver substantial cost savings in the transport sector. Estimates
11
Photo Source- Ulan Bator, Ritwajit Das, EVI
13. for the United States suggest that transit-oriented urban develop-
ment could reduce per capita car use by 50%, reducing household
expenditures by 20% (13).
At significantly lower fuel prices, rambling mould and incoherent pat-
tern of urbanization of Houston city makes it spend around 14% of
its GDP on transport compared with 4% in Copenhagen and about
7% in many Western European cities. (Notably, Houston is now mak-
ing ambitious efforts to overcome the legacy of rambling mould and
incoherent pattern of urbanization failure through innovative urban
renewal and persistent investment in public transport systems.) (14)
Adopting a compact, transit-oriented model in the world’s largest
724 cities have the promising potential to reduce GHGs emissions
by up to 1.5 billion tonnes CO2e per year by 2030, mostly by reduc-
ing personal vehicle use in favour of more efficient transport modes.
While achieving such savings would require high – quality transfor-
mative change, it would lay the foundation for even greater, sus-
tained resource savings and emission bike-sharing schemes at the
end of 2013, up from five in 2000 (15).
From Copenhagen, to Hong Kong, to Portland, Oregon, in the US,
cities are also showing how they can build prosperity, improve air
quality, reduce GHGs emissions all at once through more compact,
connected and coordinated urban growth models. Stockholm re-
duced emissions by 35% from 1993 to 2010 while growing its econ-
omy by 41%, one of the highest growth rates in Europe (16). Curitiba
is one of the most affluent cities in Brazil, but has 25% lower per cap-
ita GHG emissions and 30% lower fuel consumption than the na-
tional average due to its groundbreaking approach to integrated
land use and transport planning (17). In fact, such a shift is already
happening. Re-densification is taking place in cities as diverse as
London, Brussels, Tokyo, Hamburg, Nagoya and Beijing. More than
160 cities have implemented bus rapid transit (BRT) systems, which
can carry large numbers of passengers per day at less than 15% of
the cost of a metro (18). The BRT in Bogotá, Colombia, for example,
carries up to 2.1 million passengers per day, complemented by a
citywide network of bicycle paths that connect residents to public
transport, community spaces and parks (19).
China will have 3,000km of urban rail networks by 2015 (20) Nearly
700 cities had bike-sharing schemes at the end of 2013, up from five
in 2000 (21).
From Cape town, to Jo’Burg, to Rotterdam, Amsterdam, in the Neth-
erlands, cities are also showing how they can transform quality of ur-
ban life and simultaneously taken as an inherent example to study
better growth and better climate with out compromising the growth
factor associated with the cities. Stockholm reduced emissions by
35% from 1993 to 2010 while growing its economy by 41%, one of
the highest growth rates in Europe.20 Curitiba is one of the most af-
fluent cities in Brazil, but has 25% lower per capita GHG emissions
and 30% lower fuel consumption than the national average due to its
groundbreaking approach to integrated land use and transport plan-
ning.
12
14. A STRATEGIC APPROACH TO
MANAGING URBAN GROWTH AT
NATIONAL LEVEL
Photo Source- Hong Kong, Ritwajit Das,
15. It is indeed the need of the hour, for all countries to develop national
urbanization strategies in conjunction with city governments, with cross-
departmental representation and assigned budgets, overseen by the
centre of government and/or Ministry of Finance. They should also pro-
vide greater fiscal autonomy for cities, potentially linked to economic,
social and environmental performance benchmarks, and consider set-
ting up a special-purpose financing vehicle at the national level to sup-
port cities’ efforts to become more compact, connected and coordi-
nated, with appropriate private-sector participation. Existing infrastruc-
ture funding should be redirected to support this transition.
Countries need to prioritize better sustainably-managed urban de-
velopment and increased urban productivity as key drivers of
growth and climate goals. This is especially the case for coun-
tries with rapidly urbanizing populations, as the existing institu-
tional arrangements where urban development occurs as an after
math for other developmental programmes.
Here, we need an evolved sense of team spirit across different
laterals of government and urban development authorities. There
is an acute need for coordination and cooperation between na-
tional and regional governments and city leaders is essential. Sev-
eral countries are already making major policy changes to pro-
mote more compact, mixed-use land development, restrict urban
incoherence, maximize resource efficiency, and curtail the nega-
tive externalities of pollution, congestion and CO2 emissions.A
benchmark and high-profile example is China’s New National Ur-
banization Plan, which places urban policy at the heart of Chi-
nese decision-making (22).
14
Photo Source- Hong Kong, Ritwajit Das, EVI
16. STRONGER POLICIES AND
INSTITUTIONS TO DRIVE COMPACT,
CONNECTED AND COORDINATED
URBAN DEVELOPMENT
Photo Source- Hong Kong, Ritwajit Das, EVI
17. Building better, more productive cities is a long-
term journey. It requires persistence in several
key areas to shift away from business-as-usual
urban expansion, with countries, regions and cit-
ies working together. As a first step, cities
should seize some of the numerous opportuni-
ties available to boost resource productivity in
the short- to medium term, in sectors as diverse
as buildings, transport and waste management.
The evidence suggests that these smaller steps
could build momentum for broader, longer-term
reform, especially in capacity constrained cities.
To drive the broader structural transformation of
cities, governments should prioritise strengthen-
ing strategic planning at the city, regional and
national levels, with a focus on improved land
use and integrated multi-modal transport infra-
structure. Only about 20% of the world’s 150
largest cities have even the basic analytics
needed for low-carbon planning.These efforts
16
Photo Source- Colombo, Ritwajit Das, EVI
18. should be supported by regulatory reform to pro-
mote higher-density, mixed use, infill develop-
ment, and new measures such as efficient park-
ing practices. It is also crucial to change trans-
port incentives. We strongly feels that govern-
ments reform fuel subsidies and introduce new
pricing mechanisms such as road user charges
to reduce and eventually eliminate incentives to
fossil-fueled vehicle use.They should also con-
sider charges on land conversion and dis-
persed development, and measures that place
a higher price on land than on buildings such
as land taxes and development taxes. These re-
forms can raise revenue to invest in public trans-
port and transit-oriented development.
17
Photo Source- Colombo, Ritwajit Das, EVI
19. IN ADDITION, THERE IS A NEED FOR
NEW MECHANISMS TO FINANCE
UPFRONT INVESTMENTS IN SMARTER
URBAN INFRASTRUCTURE AND
TECHNOLOGY, SUCH AS GREATER
USE OF LAND VALUE CAPTURE,
MUNICIPAL BOND FINANCING, AND
INVESTMENT PLATFORMS TO
PREPARE AND PACKAGE
INVESTMENTS TO ATTRACT PRIVATE
SECTOR CAPITAL. THIS SHOULD BE
COMPLEMENTED BY MORE EFFECTIVE
AND ACCOUNTABLE CITY-LEVEL
INSTITUTIONS.
18
Photo Source- Hong Kong, Ritwajit Das,
21. The international community also has a key
role to play in fostering better-managed ur-
ban growth, both by building and sharing
knowledge about best practices, and by
steering finance towards compact, con-
nected and coordinated urbanization, and
away from sprawl.
We feel that developing a Global Urban Pro-
ductivity Initiative to promote and assist in
the development of best practices in boost-
ing urban productivity and support coun-
tries’ and cities’ own efforts. The initiative
should: build on the existing work of key in-
ternational organizations already working in
this field, including city networks such as
C40 and ICLEI – Local Governments for
Sustainability, and involve rapidly urbaniz-
ing countries, mayors and business lead-
ers. Key activities could include reviewing
institutional options for systematic collec-
tion of city-level data, developing urbaniza-
tion scenarios and best practice guidance,
creating an international standard for inte-
grated municipal accounting, and targeted
capacity-building.In addition, a global city
creditworthiness facility should be set up to
help cities develop strategies to improve
their “own source” revenues and, where
sovereign governments allow it, increase
their access to private capital markets.
20
Photo Source- Amsterdam, Ritwajit Das, EVI
Photo Source- Amsterdam, Ritwajit Das, EVI
Photo Source- Paris, Ritwajit Das, EVI
22. Only 4% of the 500 largest cities in developing countries are now
deemed creditworthy in international financial markets; every
US$1 spent to correct this can leverage more than US$100 in pri-
vate sector finance. The new facility should build on and scale-up
the existing programme of the World Bank, and assist cities in
both developing and developed countries. Finally, it is crucial that
multilateral development banks (MDBs) rapidly phase out the fi-
nancing of investments that lock in unstructured, unconnected ur-
ban expansion. The banks should work with client and donor
countries to redirect overseas development assistance and con-
cessional finance towards supporting integrated citywide urban
strategies and investment in smarter infrastructure and new tech-
nology. Greater consideration should also be given to redirecting
overall MDB funding to account for the growing importance of cit-
ies in economic development in rapidly urbanizing countries, as
well as the scaling-up of support to help cities prepare and pack-
age urban infrastructure investments.
21
Photo Source- Bangkok, Ritwajit Das, EVI
STIMULATING
INTERNATIONAL
COMMUNITY
23. (1) The World Bank, 2014. World Development Indicators 2014. Available at:
http://data.worldbank.org/data-catalog/world-development-indicators.
(2) The Economist Intelligence Unit, 2014.
(3) The World Bank, 2014, World Development Indicators 2014. Data cited are for GDP (con-
stant 2005 international $ PPP), available in the 11 April 2014 release of the WDI.
(4) Research carried out for the Commission, New Economy Climate Report, 2014.
(5) World Health Organization (WHO), 2014. Burden of Disease from Ambient Air Pollution for
2012. Geneva. Available at:
http://www.who.int/mediacentre/news/releases/2014/air-pollution/en/.
(6) International Monetary Fund (IMF), 2014. World Economic Outlook 2014: Recovery
Strengthens, Remains Uneven. Washington, DC. Available at:
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ernmental Panel on Climate Change. O. Edenhofer, R. Pichs-Madruga, Y. Sokona, E. Fara-
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Working Group I).
22
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