As reflected in the theme of the COP27 UN Climate Change Conference in Cairo, ‘Together for Implementation’, cities when aligned with one another and with national agenda can play a significant role in the fight against global warming.
In our report “Net zero readiness spotlight: Cities”, in collaboration with United Cities, we have identified key insights and observations that are critical to overcoming challenges in cities’ transition to net zero.
The report evaluates 50 cities showcasing the unique journey each city is on - from ensuring mitigation and adaptation for equitable and inclusive impact - to cities’ readiness to leverage technology, climate finance, innovative partnerships and the circular economy.
Key insights
- City-led action toward net zero may be affected by lagging financial, policy and regulatory barriers
- Cities need to be innovative in creating robust and agile climate governance structures to tackle operational challenges, aligning financing, procurement practices, supply chains and stakeholder management.
- Cities also need to take charge of engaging citizens by educating, guiding and encouraging behaviour change.
- Financial resources required for a global transition to net zero cannot be financed by cities and national governments alone. Cities need to be able to develop bankable and investable projects that are de-risked to attract private sector investors.
- Blended finance where public capital is leveraged to improve risk-return profile and mobilise private investment toward green climate projects is an available mechanism that should be utilised.
- Cities by their nature are host to diverse groups of people. Cities should ensure that climate action gains are redistributed equitably. To ensure this, climate action plans need to have substantive policies to ensure tangible and equitable outcomes.
- Realising climate equity and striving for a just transition in cities will help to ensure that marginalised and disadvantaged communities can not only benefit but avoid any further disenfranchisement.
- Tracking climate data at a city level is challenging. Cities need to be able to assess, monitor and evaluate results of their mitigation and adaptations.
- Not having adequate data to determine their successes will present barriers to accessing climate finance and leveraging public support.
- Big data and artificial intelligence are also critical for meeting cities’ net zero goals. To harness the power of data to create digital twins for example, data must be shared across functional and technical offices.
- Cities need a diverse set of partners and collaborators to achieve emissions reduction in their respective jurisdictions. These partnerships include private sector organisations, national governments, communities, nongovernmental organisations, and other traditional partners.
- Governments have traditionally established partnerships based on economic and social needs. Developing and establishing partnerships with the aim to achieving net zero is novel and cities will need to create an enabling environment for this change.
- Research shows that approximately 50 percent of the emissions the world needs to cut to achieve net zero could come from technology not yet invented.
- Cities need to leverage research and development to help ensure that technologies in development match needs and realities on the ground. This, along with deployment can be costly. Cities need to work collectively and collaboratively with private sector partners to ensure they can benefit from climate technologies.
Get in touch
KPMG professionals are ready to walk this journey with city leaders, mayors and officials, those working in national, state and provincial government public sectors, multilateral organisations, investors, financial institutions, the private sector and the public. KPMG will help to ensure climate action is accelerated, equitable and opens door for economic growth and environmental prosperity.
Download this report to discover, in more detail, our key insights and observations that are critical to overcoming challenges in cities. We encourage you to reach out to our team below with any queries. We'd be delighted to hear from you.
