Today, more than half the world’s population lives in cities—a figure expected to grow by 2.4 billion by 2050. Cities are at the heart of humanity’s future, but they are also ground zero for some of our biggest challenges: climate change, social inequality, and economic fragility. To house the growing urban population and achieve the U.N.’s Sustainable Development Goals (SDGs) while leading the fight against climate change, cities must embrace transformative, sustainable urban development.
The rapid expansion of urban areas is no longer just a trend—it’s a crisis. Unplanned urban sprawl, fueled primarily by mounting housing needs and the growth of informal settlements that house more than 1.1 billion people, amplifies climate risks. Buildings, housing, and construction are responsible for up to 40% of greenhouse gas emissions.
As outlined in U.N.-Habitat’s World Cities Report 2024, more than 2 billion urban residents are projected to experience significant temperature increases by 2040, with over a third of city dwellers living in areas where mean annual temperatures exceed 29°C. Over the past few decades, green areas in our cities, vital for mitigating heat and fostering well-being, have been shrinking from 19.5% of urban land in 1990 to just 13.9% in 2020. Climate-related disasters, like floods, cyclones, and droughts, have increased. They accounted for 91% of major disasters between 1998 and 2017. Often, it is the most vulnerable communities and people in informal settlements who are affected the most.
But it’s not just an environmental issue. Cities are grappling with deepening social and economic divides. Annual economic losses from increased natural disasters could surpass $1 trillion by mid-century, according to the World Cities Report projections.
The current global housing crisis affects more than 2.8 billion people worldwide. At the same time, investment in social housing has declined, with most regions allocating less than 0.5% of GDP….
