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News release


London leads the way in sustainable cities race

Climate change and globalisation are two of the major driving forces affecting the world today, with cities consuming three quarters of the world’s energy and producing 80% of all greenhouse gas emissions. The US, UK and Japan are all amongst the top ten emitters of carbon dioxide emissions in the world, with Australia in 13th place despite its much smaller population.

This report, entitled Sustainability Assessment of Global Financial Centres was commissioned by the City of London Corporation from URS Corporation Ltd. The report compares the four major financial centres London, New York, Tokyo and Sydney, in terms of the sustainability challenges they are facing and their responses. Key findings are:

  • Of the four centres considered, London has the most stringent emissions reduction targets, aiming for a 60% reduction by 2025, compared with New York’s 30% target reduction by 2030, Sydney’s 60% by 2050 and Tokyo’s 20% by 2020
  • Global financial centres are heavily dependant on fossil fuels to power their economies, exposing them to risks both from global warming and security of energy supply. Sydney is heavily dependent on coal, New York and Tokyo on petroleum, and London on natural gas. 
  • The built environment is crucial to each centre’s energy use and greenhouse emissions and London, Sydney and New York are all focusing on more sustainable design and construction techniques. Tokyo has relatively weak standards but uses financial incentives to encourage improvements in efficiency.
  • Transport is a key priority for global financial centres; over the 2000-2006 period London was the only one of the four cities to achieve a substantial shift away from car usage to public transport, cycling and walking, aided by the pioneering congestion charge scheme; 80% of workers in central London travel to work by public transport. 
  • Air quality remains a challenge for all cities.
  • Climate change could have a disastrous impact on centres with insufficient adaptation measures. New York, London and Tokyo are rated as having high levels of flood risk, for example, although London and Tokyo also have good measures of flood protection in place. The City of London’s climate adaptation strategy is one of the first of such strategies to be produced for a global financial centre.

Michael Snyder, Policy Chairman of the City of London Corporation that looks after the Square Mile business district at the heart of commercial London, said:

"Cities are now at the leading edge in dealing with human-induced climate change because they are often most exposed to their effects and because they are where humanity and innovation are increasingly concentrated. The pressing challenge is for  public policy and markets to work together so as to provide the clear incentives that will deliver sustainable solutions. London is playing a leading role in this."  

“It is entirely within our control to achieve both a higher quality of life, and a higher quality of environment in our cities – and London is leading the way.”

Ends

Notes for editors

The City of London provides local government services for the Square Mile, the financial and commercial heart of Britain, and is committed to maintaining and enhancing the status of the Business City as the world's leading international financial and business centre through its policies and services. Its responsibilities also extend far beyond the City boundaries and include management of the Guildhall Art Gallery, Barbican Centre, Central Criminal Court at the Old Bailey, 10,700 acres of open space including Hampstead Heath and Epping Forest, three wholesale food markets, as well as acting as the London Port Health Authority.

Download the report,  Sustainability Assessment of Global Financial Centres

See also information on the London Accord - the first open-source, co-operative investment analysis into opportunities and challenges in the energy supply and climate change market.

Press contact

Greg Williams: 020 7332 1455


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