New research from the New Climate Economy finds that investing in public and low emission transport, building efficiency and waste management in cities could generate savings with a current value of US$17 trillion (€15 trillion) by 2050.

The report Accelerating Low-Carbon Development in the World’s Cities also says that low-carbon investments could reduce greenhouse gas emissions by 3.7 Gt CO2e per year by 2030, more than the current annual emissions of India.

The New Climate Economy is the flagship project of the Global Commission on the Economy and Climate – a major international initiative to analyse and communicate the economic benefits and costs of acting on climate change.

It was established by seven countries: Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United Kingdom, as an independent initiative to examine how countries can achieve economic growth while dealing with the risks posed by climate change.

Chaired by former President of Mexico Felipe Calderón, the Commission comprises former heads of government and finance ministers and leaders in the fields of economics and business.

With complementary national policies such as support for low-carbon innovation, reduced fossil fuel subsidies, and carbon pricing, the savings could be as high as US$22 trillion.

“The steps that cities take to shrink their carbon footprints also reduce their energy costs, improve public health, and help them attract new residents and businesses,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy for Cities and Climate Change. “This report can help accelerate the progress cities are making in all of these areas, by highlighting smart policies and encouraging cooperation through efforts like the Compact of Mayors.”

The report recommends that cities commit to low-carbon urban development strategies by 2020. It also recommends cities commit to the Compact of Mayors, a global coalition of mayors and city officials pledging to reduce local greenhouse gas emissions, enhance resilience to climate change, and track their progress transparently. More than 130 cities – representing more than 220 million people – have already committed to the Compact of Mayors and will be setting ambitious emissions reduction targets and reporting publicly.

“Better, more resilient models of urban development are particularly critical for rapidly urbanizing cities in the developing world,” said Eduardo Paes, Mayor of Rio de Janeiro and Chair of C40 Cities. “Cities around the world are already leading the way in implementing sustainable and innovative urban solutions. By sharing and scaling-up these best practices through international collaboration, cities can save money and accelerate global climate action."

The report offers numerous examples of cities that have achieved or can achieve economic benefits from green investments.

Nick Godfrey, Head of Policy and Urban Development at the New Climate Economy and an author off the report, provided further context for the report’s analysis.

“US$17 trillion in savings is actually a very conservative estimate,” he said, “because it only looks at direct energy savings generated from investment, which are a small proportion of the wider social, economic, and environmental benefits of these investments.”

The report also recommends that the international community should develop an integrated package of US$1 billion or more over five years to help accelerate and scale up low-carbon urban strategies in at least the world’s largest 500 cities.

Click here to download Accelerating Low-Carbon Development in the World’s Cities