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Urban development

icon-ff Created with Sketch. Can cities with over a million inhabitants grow sustainably?

The growth of cities around the world is continuing unabated. Forecasts estimate that there will be more than 500 cities with over one million inhabitants by 2030. The gigantic urban centres are arising particularly in emerging and developing countries and have to contend with a variety of challenges. Is sustainable development even still possible?

Picture of two men, Klaus Gihr and Peter Hilliges

Klaus Gihr, Head of the Competence Centre Infrastructure and Natural Resources, and Peter Hilliges, Head of the Competence Centre Climate and Energy at KfW Development Bank, discuss the possibilities of sustainable development in fast-growing cities and megacities.

Urbanisation continues unabated

More and more people are moving to cities – and the consequences of this often unchecked urban growth are enormous: “The number of people who need access to basic supplies is rising rapidly, especially in Asian and African cities,” explains Klaus Gihr. The head of the Competence Centre Infrastructure and Natural Resources at KfW Development Bank concentrates on the impacts of growth on mobility, transport, water supply, waste disposal, sanitation, and biodiversity issues in his daily work. “A functioning infrastructure must be provided to guarantee people a supply of drinking water as well as sewage and waste disposal.” Providing housing, food and energy is also essential. In addition, increasing resource consumption and greenhouse gas emissions harmful to the climate are the consequences of rapid urbanisation. “Furthermore, many of these cities are located on the coast – they are particularly vulnerable to climate change,” says Gihr.

Bild einer Autobrücke über Wasser, Hochhäuser im Hintergrund

But in addition to the challenges, megacities also offer opportunities and new possibilities. Their development and constant renewal contribute to new forms of sustainable living – cities are thus engines of growth and centres of productivity. “Urbanisation is often based on considerable potential for growth and income in cities,” explains Peter Hilliges. As the head of the Competence Centre Climate and Energy at KfW Development Bank, he focuses on strategies for adapting to and mitigating climate change and on the energy sector. “In densely populated areas, for example, health care and education can be made more easily accessible – this is often more difficult to achieve in rural areas.” The efficiency of cities also has enormous potential: high-density living, for example, enables savings in investment and supply.

It’s important that urbanisation is not always about problems, but also about opportunities.

Peter Hilliges, Head of the Competence Centre Climate and Energy at KfW Development Bank
Bild eines Zugs auf einer Brücke, Landschaft und Stromleitungen im Hintergrund
Mehrere Menschen sitzend und stehend in einem Zugabteil

Planning expansion better

The experts agree: potential for sustainable development exists especially when it comes to the efficiency of urbanisation and the resulting opportunities. However, to achieve this, urbanisation needs to be planned better. “The focus must be on climate-friendly and sustainable design,” says Klaus Gihr. “I share this view – because the problem is not urban growth per se, but rather the fact that it is unchecked. If this is the starting point, we definitely see potential for sustainable development,” replies Peter Hilliges. Compared with rural regions, urban areas offer more opportunities to change course and implement climate-friendly measures. Thus, the expansion of public transport is one way to make cities more sustainable.

I am an optimist. Cities can be made more climate-friendly and sustainable – but only with systematic planning.

Klaus Gihr, Head of the Competence Centre Infrastructure and Natural Resources

Despite the theoretical possibilities for sustainable urban development, practical implementation is rather slow at present. “For planned and structured sustainable growth, actors are needed who are capable of making decisions. And it is precisely this ability to shape the future that does not exist in many municipalities,” explains Peter Hilliges. “The potential exists, but implementation is still lacking.”

Promoting sustainable development

The challenges facing cities with millions of inhabitants are well known, and there is potential for improvement – what factors need to be considered in sustainable development? People play an outstanding role in this context: they should be the focus of all decisions. “Cities have a responsibility to provide their inhabitants with a high-quality, sustainable living environment,” explains Peter Hilliges. “City-dwellers need to be part of the process and understand the necessity for the measures. At the same time, their needs should be taken into account.” On the other hand, a strong civil society can also be a driver for tackling air pollution or problems with waste – the population has the ability to exert pressure on the government and also work independently on improvements.

Municipalities as key actors

“To achieve sustainable urban development, concrete decisions must be made and measures implemented systematically. The cities themselves have a vital self-interest in making their residential areas more sustainable – I am convinced that the municipalities are aware of the problem. However, the question is to what extent they can undertake infrastructure measures on their own in practice. In many cases, the municipal administrations of developing countries and emerging economies lack both planning capacities and management mechanisms. I believe what is needed is a government that pursues a clear course and offers cities incentives for sustainable development.”

Technological innovations can also support development – especially in the provision of solutions: “Digitisation creates solutions for a wide range of problems. This includes, for example, the efficient design of local public transport using app-based systems,” says Klaus Gihr. “Or the example of traffic management systems: new technologies can make traffic flows much more efficient and effective,” adds Peter Hilliges. Energy consumption can also be controlled by digital means, such as smart metering systems.

Growing cities with over a million inhabitants in India

With 1.3 billion people, India is one of the most densely populated countries in the world. The increase in urbanisation is enormous: forecasts predict that several hundred million people will move to cities over the next 20 years.

What is special about India when it comes to urban development?

The country has been experiencing steady economic growth for many years – along with rising incomes and purchasing power. This paves the way for investments and thus change. India is currently experiencing very dynamic development. Overall, the conditions in this globally important country offer good opportunities for climate-friendly and sustainable urban development.

What are the main problems in an Indian metropolis like Delhi?

Urban services, i.e. access to health, education and transport, are in short supply – this is something that particularly low-income residents experience on a daily basis. In addition, residents are exposed to poor air quality. Another issue is the extremely hot temperatures in summer, which are accentuated by the high building density in the city, as concrete and roads store the heat.

Eine Straße mit Menschen und vielen stehenden Rikschas, seitlich Häuser und Stromleitungen

What progress have you seen in Delhi?

The city is striving to find systematic solutions. Over the past 20 years, Delhi has built up a metro network spanning some 300 kilometres. I see this as a massive transformation process for the city. In response to the rising demand for electricity, support was also provided for the generation of solar energy in the city. One problem that Delhi has not yet managed to solve in my view is waste management. Overall, however, based on my experience, I can say that a lot has happened in the last 30 years.

Bringing about effective change

A look at individual case studies, such as the developments in Delhi, is encouraging and the assessments of the KfW experts show: the challenges are immense and the requirements complex, but they can be met with a well-directed strategy. The focus is on empowering local authorities to develop solutions and implement them effectively and holistically. At the same time, sustainable urban development must be understood as a joint project: the commitment of civil society, the achievements of local businesses and the support of external actors also contribute to success. KfW contributes a wide range of solutions for mobility, clean air, water and sanitation management, and climate change adaptation with the aim of achieving improvements and making cities more sustainable and thus more viable for the future.

Further information on the challenges of urbanisation: “More megacities”.