WEF Suggests EGS Solutions for Cities to Reach Net-Zero Emissions

According to the latest UN Emissions Gap Report, the international community is unlikely to meet the Paris Agreement emissions reduction targets needed to limit global warming to 1.5°C, owing to shortages in necessary policy-making and delays in implementing solutions. Meanwhile, livelihood crises and social cohesion erosion are among the top four risks within the next five years, according to the Global Risk Report 2022. Cities, which house almost 60% of the world’s population, are also responsible for two-thirds of the world’s energy consumption, and consequently produce more than 70% of the world’s emissions. The increasing trends towards urbanisation mean that the role of cities in tackling environmental and social issues will continue to grow.

Potential environmental impact:

An environmental, social, governance (ESG) framework can offer a structured approach for cities and local governments to assess and address socio-environmental challenges, while also ensuring good overarching governance. By adopting such an approach, cities can also ensure they are progressing towards the 17 United Nations Sustainable Development Goals, given their strong correlation. When considering the environmental pillar of an ESG framework, the key focus of a city when considering the environmental pillar of an ESG framework should be centreed on achieving net-zero targets through aspects such as clean energy production, water and waste management, and air pollution. Examples of successful implementation of the ESG-based approach include New York City’s Climate Mobilization Act and Singapore’s Green Plan. Smart and emerging technologies such as digital twins and blockchain can help city governments develop convenient solutions to their socio-environmental challenges.