Significant GDP is lost through poor urban planning

Findings from the Green Economy report of the UN Environment Programme (UNEP) indicate that current patterns of urban development could be costing countries over 3 per cent of GDP as a result of congestion to welfare costs.
The cities chapter of the report, released at the Gwangju Summit of the Urban Environmental Accords in South Korea, cites Buenos Aires and Dakar as two examples where current patterns of urban development are reducing GDP by 3.4 per cent. Current models of urban development in a city like Mexico City may be undermining the economy by over 2 per cent of GDP, and in the European Union a lower but still significant 0.75 per cent of GDP.
Achim Steiner, UN under-secretary-general and UNEP executive director, said: “Without cities, a transition to a low carbon, resource efficient green economy as a way and as a means for implementing sustainable development, will always remain an aspiration rather than a reality. The overwhelming evidence is that the decoupling of economic growth from the consumption of natural resources will only happen if cities are committed and on board.
“The evidence from around the globe, and the case studies from city delegates in Gwangju, is that this realisation and action to redefine the urban environment as a catalyst for transformational change is understood and underway,” he said.
“Rio+20 in Brazil next June is an opportunity to scale-up and to accelerate these transformations through innovative policy switches, creative and available technologies and by capitalising and adopting the legion of lessons and experiences that clearly illuminate a path towards a sustainable future,” he added.
According to the report, cities are facing mounting pressures to meet the demands of bourgeoning populations – from unsustainable resource use and energy consumption to insufficient infrastructure and health hazards.
While urbanisation has helped to reduce absolute poverty, the number of people classified as urban poor is on the rise. Between 1993 and 2000, there were an additional 50 million poor in urban areas while the number of rural poor declined by 150 million.
The UNEP report finds that the environmental performance of cities can be enhanced through effective urban planning and sound governance. The physical structures of cities – urban form, size, density and configuration – can be designed and managed to limit resources consumption and per capita carbon emissions. More compact urban forms, reduced travel distances, higher density green residential and commercial buildings, and investment in green public transport lead to greater energy efficiency and reduced environmental footprints. Net residential densities of up to 3,000 persons per hectare can be reached without compromising environmental or social conditions.
Many cities around the world have recognised such structural opportunities. Compact urban development models with walkable urban neighbourhoods and green public transport have been created in cities such as Copenhagen, Oslo and Madrid in Europe, and Curitiba, Vancouver and Portland in the Americas.
In high-density cities such as Hong Kong and New York, housing, commercial and leisure facilities are in close proximity, thus limiting the lengths of everyday trips. This is supported by efficient and extensive public transport networks.
In an urban green economy, job creation can come in many forms – from urban agriculture and renewable energy to green construction and better waste management. Upgrading to greener infrastructure will also create more jobs, as will more effective recycling services. For example, in South Korea, the Ministry of Environment expects the government and private sector to spend 5.63 trillion won to expand the country’s waste-to-energy facilities by 2013. It has projected that this project will create 46,000 new jobs and generate savings of 1.2 trillion won from reduced waste disposal and importation of crude oil, while reducing greenhouse gas emissions.
The most significant cost savings can be derived from shifting away from infrastructure for automobiles to more efficient public transport systems, such as pedestrian and cycling paths. Studies have shown that fuel wasted in traffic jams in well-designed cities such as Curitiba, Colombia, has cost the city about US$930,000 compared to $13.4 million in Rio de Janeiro.
A green public transport sector also helps create jobs. In many countries, public transport jobs account for up to 1 and 2 per cent of total employment.  In New York, almost 80,000 local jobs are connected to the sector, and in Mumbai there are more than 160,000 jobs involved.
Overall, greening cities reduces social inequality and improves the quality of life for its inhabitants. Research shows that creating green spaces has positive impacts on public health, as does providing access to recreational facilities such as bicycle and walking paths.

Nick Nuttall is UNEP spokesperson and head of media.