Improving urban quality of life and protecting the climate Key areas of sustainable urban development

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International partnerships Internal link

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Urban climate finance Internal link

Growing urbanisation means that new housing and new infrastructure needs to be built on a large scale. The goals of the Paris Agreement cannot be met if the cities of the future continue to be built mainly from cement, steel and glass. Construction urgently needs to become more environmentally friendly. By modernising older buildings and ensuring that new ones are constructed in a way that conserves resources, by 2050 the energy consumption of buildings could be reduced by half. Nature-based solutions offer sustainable additional options or alternatives to traditional approaches.

Germany promotes the use of local, organic, resource-efficient, low-emission construction materials and the reuse of building materials within circular systems. The aim is to create liveable, affordable, accessible living spaces and upgrade previously underserved areas, with a focus on benefiting poorer and disadvantaged population groups. The goal is also to equip buildings and supply infrastructure to cope better with the impacts of climate change.

Estimates suggest that between 4.5 and 5.4 billion US dollars need to be invested in climate-friendly and sustainable infrastructure each year. In order to continue supporting cities in coping with this massive need for investment, Germany is involved in various international alliances and financing instruments.

Green public spaces

Green spaces and open areas contribute to a good quality of life in cities. Not only do they provide local spaces for leisure and recreation for the urban population, they also lower the temperature in surrounding residential areas and improve air quality. Open public spaces in urban areas thus have a direct positive impact on the health of the population. They also increase resilience against the effects of climate change and contribute to maintaining and fostering urban biodiversity.

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Transformative Urban Mobility Initiative (TUMI) Internal link

The transport sector is a major contributor to air pollution and greenhouse gas emissions – and the number of vehicles on the road could rise significantly in the coming decades. Cities therefore need to reduce combustion engine transport, promote public transport, cycling and walking, and make urban transport systems climate neutral, safe, and universally accessible and affordable using innovative ideas and technologies.

Germany’s development cooperation activities therefore support sustainable, accessible mobility that helps protect the environment and the global climate, and which enables access to employment, services and social participation for all population groups. To this end, the German government is promoting the expansion of modern and efficient transport systems like underground trains, trams and rapid transit buses, and the construction of footpaths and cycle routes. Germany is also working to digitalise traffic streams and introduce bike rental and car-sharing services and electromobility.

In order to implement relevant projects in this area, the Federal Ministry for Economic Cooperation and Development (BMZ) launched the Transformative Urban Mobility Initiative (TUMI) in 2016 in collaboration with 10 partner organisations.

Many fast-growing cites in developing countries and emerging economies face the challenge of ensuring safe drinking water and wastewater management for all households. The impacts of global warming are exacerbating the situation: of the largest 500 cities in the world, one in four is facing an acute water shortage. At the same time, sealed surfaces mean that the increasingly heavy rainfall cannot be absorbed into the ground and is overwhelming drainage systems, leading to an increase in flooding.

Adapting the water infrastructure makes cities more resilient to the effects of climate change, improves health and equality among urban populations and helps to lower the temperature in the local area.

The Federal Ministry for Economic Cooperation and Development (BMZ) supports measures that constructively combine “grey” water infrastructure (i.e. built water infrastructure) with “blue” infrastructure (i.e. rivers, streams, ponds, canals) and “green” infrastructure (i.e. parks, fields, grass verges, green roofs). This includes support for rainwater collection systems, urban waterscapes and water retention areas in the outskirts of cities.

At the UN Water Conference in March 2023, Germany and the Netherlands launched the Urban Water Catalyst Initiative (External link). The Initiative supports urban utilities in their efforts to independently improve their drinking water and wastewater systems and finance them long-term.

By 2050, it is estimated that two thirds of the global population will live in cities – and will consume 75 per cent of the natural resources. Cities are therefore key players in all efforts towards reducing waste and achieving a resource-conserving, low-carbon, circular economy.

The BMZ supports its partner countries and cities in establishing better waste management services, adapting planning processes and legal frameworks, developing tariff and financing systems, and improving cooperation between different municipal utilities. Private companies and informal waste collectors are actively included in these processes.

German development cooperation is putting increasing emphasis on introducing circular economy business models. This means supporting companies in collecting, disposing of and processing waste sustainably, and in avoiding waste generation in production, consumption and retail.

In 2019, the BMZ launched the PREVENT Waste Alliance (External link) in order to promote international dialogue and cooperation around the circular economy. The Alliance brings together companies, academic institutions, non-governmental organisations and government authorities to facilitate knowledge exchange and the collaborative development of innovative solutions.

Cities are home to a particularly high concentration of academic institutions and private companies. This makes them ideal hubs for innovation and excellent locations for developing digital solutions.

The BMZ promotes the use of information and communication technologies in urban administration as part of good e-governance. This increases the transparency and efficiency of decision-making processes and facilitates accessible participation by all citizens.