The problems faced by the built environment are immense, but solutions are emerging. Public transit systems are being updated; buildings are being electrified; neighborhoods are being constructed with human and environmental wellness baked into their design. An essential factor in the transition towards sustainable cities is making sustainability irresistible by creating attractive environments that are environmentally and economically sustainable.

What remains is how to finance the transition to net zero buildings, with an estimated $630bn financing gap per year needed to fund this transition, with over 80% of this required from private investors1. If clear investment opportunities are identified to unlock these capital flows, the urban transition could be our greatest success story, if not a harbinger of doom.

The Green and Thriving Neighborhoods Programme, led by C40 and Urban Partners aims to unlock what creative solutions and urban models are required to effectively transition our cities/ Across 22 global pilot projects, from mixed-use developments to social infrastructure, this program demonstrates municipalities’ willingness to adopt new models of sustainable urbanism to transform their cities.

The goal is now to bridge the gap with investors, find new and ambitious sustainable financing solutions, and foster collaboration between public and private actors to make these projects a reality. This was the focus of C40 and Urban Partners’ event during New York Climate Week 2024, supported by Creative Denmark as branding partner, bringing together a range of keynote speakers to weave a picture of energetic collaboration among governments, investors, developers, architects and citizens.

Placing partnerships at the center of the dialogue around how to stimulate widespread action across the urban value chain, they highlighted the importance of multi-stakeholder collaboration. Speakers outlined a new investment approach, one that focused first on the needs of citizens, with built environment ‘products’ that respond to these needs.

Learnings from the Urban Value Chain Across two panels: “Building the Future Together: Urban decarbonization needs innovative solutions” and “Learnings from Northern Europe: Embracing sustainability as a key investment criteria”, speakers highlighted the need for a joint dialogue between ambitious, early stage climate technologies, and architects, urban designers and developers at one end of the value chain, and institutional investors and asset managers at the other end.

They advised moving away from silos, calling integration “the biggest successful innovator” that drives success. Through joint, measurable sustainability objectives, developers, architects, urban designers, innovators and contractors alike can work together to a common definition of success. Paul Polman, ex Unilever CEO and renowned sustainability leader was positive about our chances, exclaiming “We can attack 80% of the issues now if we do it together, for the benefit of all of us”

Urban Partners’ Executive Chair Mikkel Bulow-Lehnsby urged investors to recognize the opportunity and invest in the urban transition. He emphasized the universal principle of supply and demand and encouraged investing in what the future needs. "Our system falsely assumes that doing good for the world is detrimental to returns. But addressing unmet demands is the ultimate path to superior risk-adjusted returns. It is the way to create the solutions that the future desperately needs."

Sustainable development benefits both the world and returns. In 30 years, stranded assets will become apparent, making net-zero investments more valuable. These investments enable a built environment where people, planet, and profit all win. “We all know that creating low carbon assets is better,” he stated. “How can we actually start to incentivize things we all know will be rationally better to do for the long term?” By making sustainability the irresistible choice, we pave for enduring value and resilient communities.

Investing to create green and thriving neighborhoods The following talks involved a dialogue between ambitious policymakers and large private investors, setting out their approaches to transform cities. This was discussed across two panels: “Investing for Neighborhood Scale Impact — A Novel approach to transform our cities” and “State of Global Cities — Challenges and opportunities for neighborhood regeneration”.

Creative financial products through direct collaboration between the public and private sector are key, as outlined by C40 Co-Chair and Mayor Yvonne Aki-Sawyerr of Freetown– “having the right frameworks, having the right laws in place, is critical. But you've also got to think, where does the money come from”.

Success cases such as Quebec’s privately funded, publicly managed high-speed rail system, show the potential of such approaches, as well as Kenya’s establishment of mixed-use economic zones and North Harbor in Copenhagen, with a public-private entity created by the municipality and Urban Partners to develop and manage ground floor spaces across the neighborhood.

A positive correlation exists between helping the planet and helping people, bound together by new creative and innovative solutions and partnerships. A sustainable built environment naturally prioritizes creative approaches to elements that guarantee a high quality of life, like accessible green space; centrally located healthcare and community facilities; access to clean air and water; and resilient materials. Combining sustainability with these elements is key to a positive transformation.

C40 Cities Executive Director Mark Watts encouraged a community-first mindset, explaining how small-scale projects harness local knowledge. He spoke about Reinventing Cities, a program that issues funds for cities to regenerate assets using community-generated solutions. “Once you make it very open, communities are very good at thinking creatively,” Mark said, mentioning projects like converting an old firehouse to an urban farm centre in Singapore and establishing a residential community in Chicago that creates its own renewable energy.

“We’ll triumph over market conditions that hinder investment in green neighborhoods and perpetuate desolate cities. We are providing something that people want and safeguards the future of humanity. So, in the end, victory will be ours,” he said.

This community-first mindset underscores that collaboration and end-user involvement are key to developing livable and resilient neighborhoods that not only meet environmental needs but also address social and economic challenges, hence improving quality of life.

Takeaways offered a clear path forward for positive movement: