In this article, we will look at the 20 Most Sustainable Cities in the World. You can skip our detailed discussion and see the 5 Most Sustainable Cities in the World.
Global Sustainable Development Progress
According to the latest UN report, the world is falling behind on the progress towards the sustainable development goals (SDG). Only 17% of the SDG targets are on track to be met by 2030, with around 50% exhibiting moderate progress. More than one-third of the SDG targets have regressed. This can be attributed to many factors including the consequences of the COVID-19 pandemic, escalating geopolitical tensions, and deteriorating climate. These crises have a disproportionate effect on developing countries due to systematic incompetence.
Poverty and hunger are still among the biggest global challenges which are further escalated by the climate crisis. 23 million more people are now facing extreme property and over 100 million additional people are experiencing hunger, compared to pre-pandemic levels. The pandemic severely impacted global health progress, erasing the growth of nearly a decade of advancement towards life expectancy. Literacy also remains a major concern among developing countries. These issues are witnessing an alarming rise calling for an urgency to address them. Conflicts around the world are only accelerating the impacts of the global humanitarian crisis, resulting in a record 120 million forcibly displaced individuals.
The climate crisis is one of the biggest barriers inhibiting the progress towards SDGs. 2023 was recorded as the warmest year with global temperatures reaching nearly the critical limits of the Paris Agreement. Greenhouse gas emissions are on the rise leading to a surge in environmental degradation. Developing countries are more prone to its consequences compared to advanced economies. The disparities among the developing and advanced countries are further highlighted by a $4 trillion annual investment gap in SDG financing for developing economies.
READ ALSO: 30 Most Sustainable Countries in the World and 15 Countries at Risk of Climate Disaster
Cities- An Epicenter of the Climate Crisis
According to the 2024 Sustainable Cities Report by Arcadis, cities are at the epicenter of the climate crisis. The rise in extreme weather events requires urban centers to prioritize disaster resilience while reducing their carbon footprint. European cities lead the world with progress in sustainable mobility, clean air, and waste management. For example, Oslo has an air quality index of 98, higher than the European average. Moreover, the city is on track to reach its emission-free goal by 2030 driven by its commitment to renewable energy. German cities are also making strides with an average renewable energy use of 70.80% across the four German metropolises, Berlin, Frankfurt, Munich, and Hamburg, higher than the regional average.
The global progress of cities toward sustainability exhibits a mixed outlook with European cities leading in the environment and renewable energy area while other regions show variable levels of progress. For instance, Los Angeles stands out as a leader in the North American region, however, the other cities face a surge in climate risks. Asia also lags in its progress toward sustainability metrics such as air pollution and renewable energy. Africa faces major humanitarian and climate crises, with little to no progress toward sustainable measures. However, cities in Africa such as Kinshasa exhibit potential in renewable energy like hydropower.
For cities to achieve sustainable development goals, increased investment and collaboration is required. Transition to clean energy is a must to progress forward while preserving the environment and meeting the goals set for countries as a result of the Paris Agreement. Public and private partnerships are pertinent to overcoming obstacles in sustainable progress and global development worldwide.
Decarbonization of the Power Sector
The power sector contributes the highest toward GHG emissions, polluting the environment. Renewable energy sources provide an alternative to traditional energy sources, avoiding a major chunk of GHG emissions and particle pollution from fossil fuel energy generation. Constellation Energy (NASDAQ:CEG) is one of the largest producers of clean energy, powering more than 16 million households and businesses across the US through its fleet of nuclear, hydro, wind, and solar generation facilities. The company has a capacity of 32,400 megawatts and is responsible for supplying 10% of the total clean energy on the grid in the US.
Constellation Energy (NASDAQ:CEG) stands to benefit from AI-driven electricity demand thanks to its nuclear energy generation assets. Data center operators are looking for cleaner power sources that will help them operate for 24 hours and are signing power purchase deals with companies like Constellation Energy. The group already has an active contract with Microsoft for nuclear energy for data centers.
The global renewable energy leader is also seeking 20-year license renewals for 2 nuclear plants. The group has the largest carbon-free nuclear fleet in the US, with a capacity factor of 94%. The Biden Administration is also incentivizing nuclear power operators and recently announced measures to help them cut costs and ramp up plant construction.
AI-driven electricity demand, and particularly clean energy demand, provides a huge opportunity for companies like Constellation Energy (NASDAQ:CEG). The stock has gained 78% over the past 12 months and analysts’ 1-year median price target implies a further upside of 21%.
ClearBridge Global Infrastructure Value Strategy mentioned the following about Constellation Energy Corporation (NASDAQ:CEG) in its Q1 2024 investor letter:
“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) and U.S. rail operator CSX the lead performers. Constellation Energy is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation has been a beneficiary of AI and subsequent power demand as its 24/7 base load nuclear generation can get premium contracts.”
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Methodology
To compile our list of the 20 most sustainable cities in the world, we consulted the Arcadis Sustainable Cities report which assesses cities across four key domains including Planet, People, Profit, and Progress, and 67 metrics. The comprehensive approach addresses environmental, social, and economic factors like air pollution, renewable energy use, access to clean water, education, health, and economic performance. Our list appears in descending order of their composite ranks in the report.
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20 Most Sustainable Cities in the World
20. Beijing, China
Planet: 67
People: 27
Profit: 31
Progress: 7
Beijing is the capital of China, with over 22 million people residing in the city. The city boasts a good score across all key pillars and is ranked among the most sustainable cities in the world.
19. Shanghai, China
Planet: 65
People: 24
Profit: 24
Progress: 6
Shanghai is the biggest city and the financial hub of the country. The city has set an ambitious goal of reaching a carbon peak by 2030 and reaching carbon neutrality by 2060. It is ranked 19th on our list.
18. Singapore City, Singapore
Planet: 36
People: 48
Profit: 13
Progress: 25
Singapore City is ranked 18th on our list of the most sustainable cities in the world. The city offers a sustainable and eco-friendly living standard. It is also one of the top Asian cities boasting development across SDGs.
17. Brussels, Belgium
Planet: 11
People: 12
Profit: 52
Progress: 36
Brussels is one of the top cities boasting development across the key pillars of sustainability. The city is highly walkable and eco-friendly.
16. Vienna, Austria
Planet: 16
People: 2
Profit: 56
Progress: 42
Vienna is one of the most innovative and smart tourism destinations in the world. The city boasts a high living standard and aims to become carbon-neutral by 2040.
15. Dublin, Ireland
Planet: 37
People: 18
Profit: 5
Progress: 41
Dublin aims to reduce its greenhouse gas emissions by 51% by 2030 and reach carbon neutrality by 2050. It is the 15th most sustainable city in the world.
14. Paris, France
Planet: 19
People: 1
Profit: 37
Progress: 55
Paris leads among the most sustainable cities across the people pillar, offering green space, reduced emissions, and high living standards. It is ranked 14th on our list.
13. Edinburgh, Scotland
Planet:10
People: 9
Profit: 46
Progress: 40
Edinburgh is on the path to becoming carbon neutral, evolving as a climate-ready city by 2030. It is one of the most sustainable cities in the world.
12. Stockholm, Sweden
Planet: 12
People: 13
Profit: 4
Progress: 66
Stockholm utilizes renewable energy sources for its electricity production and boasts a strong public transport system, leading to reduced greenhouse gas emissions.
11. Seoul, South Korea
Planet: 42
People: 5
Profit: 16
Progress: 18
Seoul is the most sustainable Asian city on our list. Recently, South Korea announced its plan to generate 70% of its electric power from renewables and nuclear power by 2038.
10. London, United Kingdom
Planet: 4
People: 29
Profit: 29
Progress: 47
London is one of the most sustainable cities in the world. It aims to be a carbon-neutral city by 2050, driven by energy-efficient buildings, renewable energy, and clean transport. The city also aims to reduce its waste and become zero-waste. 65% of its municipal waste will be recycled by 2030.
9. Warsaw, Poland
Planet: 25
People: 4
Profit: 39
Progress: 14
Warsaw is ranked 9th on our list of the most sustainable cities in the world. It is a green city, with over 25% of its area comprising fields, parks, and other green spaces. Poland is one of the largest players in renewable energy production and plans to increase its renewable energy capacity to 6GW by offshore wind by 2027.
8. Berlin, Germany
Planet: 3
People: 26
Profit: 53
Progress: 20
Berlin plans to be climate-neutral by 2045. The city has developed multiple climate initiatives and policies to reach its goal. Berlin, and Germany at large provide subsidies for electric cars and energy-efficient heating and cooling for its residents to reduce costs while promoting energy security. It is ranked among the most sustainable cities in the world.
7. Hamburg, Germany
Planet: 9
People: 10
Profit: 42
Progress: 27
Hamburg’s major climate change strategy is to cultivate a generation of environmentally aware residents, skilled to combat the climate change crisis. The second largest city in Germany has over 40% of its area covered in forest, recreational space, or natural reserves. It is one of the greenest cities in Europe. Hamburg aims to reduce its emissions by 95% by 2050.
6. Oslo, Norway
Planet: 1
People: 8
Profit: 28
Progress: 96
Oslo is one of the most sustainable cities in the world. The city boasts sustainable public transportation with zero-emission vehicles. According to a report by the United Nations, Oslo has achieved 74.8% of its sustainable development goals. It is ranked first in the planet pillar due to its clean air quality, strong environmental practices, and renewable energy reliance.
5. Munich, Germany
Planet: 8
People: 36
Profit: 22
Progress: 24
Munich is one of the cities in Germany that boasts admirable development across key SDG indicators. Munich aims to reach net zero status by 2035 by implementing energy-saving and renewable energy deployment obligations across the city. It is ranked 5th on our list of the most sustainable cities in the world.
4. Frankfurt, Germany
Planet: 7
People: 34
Profit: 18
Progress: 30
Frankfurt is one of the major cities in Germany that consumes the highest renewable energy. The city aims to reduce its carbon dioxide emissions by 50% by 2030.
3. Copenhagen, Denmark
Planet: 2
People: 11
Profit: 15
Progress: 26
Copenhagen is ranked 3rd on our list of the most sustainable cities in the world. It emerges as one of the leading cities across all 4 pillars of sustainable development.
2. Rotterdam, Netherlands
Planet: 5
People: 44
Profit: 14
Progress: 10
Rotterdam is a center of trade and innovation in the Netherlands. The largest port city in Europe benefits from its robust shipbuilding sector. It is ranked 2nd on our list, boasting sustained progress across sustainable development goals.
1. Amsterdam, Netherlands
Planet: 6
People: 42
Profit: 1
Progress: 11
Amsterdam is ranked 1st on our list of the most sustainable cities in the world. It has made considerable efforts over the past decade to reduce its emissions by increasing its share of sustainable energy sources. It aims to reduce absolute energy consumption and increase the production of renewable energy. In order to reach its ambitious goals, by 2030, it needs to continue its rapid trajectory.
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