01/12/2010 – Cities and metropolitan regional governments should play a more prominent role in
defining the wider response to climate change, according to a new report from the OECD.

Cities and Climate Change confirms that urban areas use most of the world’s energy 
and are responsible for most of the world’s greenhouse gas emissions. Cities are at the 
same time highly vulnerable to the rising sea levels, warmer temperatures and destructive 
storms expected to result from climate change: by 2070, 150 million city-dwellers, producing 
9% of global GDP in coastal cities, will be exposed to the full brunt of climate change, according 
to the report. 

“Cities are at the center of the problem, and  given their role as the predominant consumers of energy,  
they are also a necessary part of the climate change solution,” OECD Secretary-General 
Angel Gurria said. “Urban policymakers should immediately start reshaping their cities’ futures, 
using better urban planning and policies to reduce energy use, cut greenhouse gas emissions 
and make their infrastructure more resilient.”

The OECD identifies best practices in energy, housing, urban planning, public transport and 
other policy areas that limit cities’ contribution to climate change and help adapt to expected impacts.

Densely-populated cities in Korea and Japan produce lower CO2 emissions per capita than 
sprawling urban areas in Australia, Canada or the United States. Similarly, New York’s 
greenhouse gas emissions are far below those seen in Los Angeles, thanks to its compact 
form and larger reliance on public transport.

Policy decisions can help cities tackle these disparities. Better land-use policies and eliminating 
property taxes that favour single-owner housing could decrease urban sprawl. Greater 
financial support for public transport could convince city dwellers to leave their cars at home. 
Congestion charges in cities from London to Stockholm to Seoul have shown that taxing drivers 
can change behaviour and reduce pollution.

The move toward low-carbon cities will require significant up-front investments in clean 
infrastructure.
New financial instruments – such as urban carbon markets, local cap-and-trade systems and 
grants that make environmental sustainability a key criteria – could help pay for cities’green 
solutions. Miami, Hong Kong, Milan and Bogota have applied smart local green taxes to finance 
their public transportation systems.

The report says that cities and regional government authorities can be laboratories for action on 
climate change, but points out that local initiatives must be coordinated with other levels of government.


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