Cities as engines of global net-zero transitions in a shifting world UNIDO white paper on decarbonizing cities and urban communities Disclaimer This document has been produced without formal United Nations editing. The designations employed and thepresentation of the material in this document do not imply the expression of any opinion whatsoever on thepart of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning thelegal status of any country, territory, city or area or of its authorities, or concerning the delimitation of itsfrontiers or boundaries, or its economic system or degree of development. Designations such as “developed”,“industrialized” or “developing” are intended for statistical convenience and do not necessarily express ajudgement about the stage reached by a particular country or area in the development process. Mention offirm names or commercial products does not constitute an endorsement by UNIDO. For additional information, please contact the Energy Systems and Industrial Decarbonization Unit,United Nations Industrial Development Organization,Vienna International Centre Wagramer Str. 5 P.O. Box 300 A-1400 Vienna - AustriaE-mail:industrialdecarb@unido.orgWebsite:decarbonization.unido.org © UNIDO 2025.All rights reserved. This document may be freely quoted or reprinted, but acknowledgment is requested. Recommended citation: United Nations Industrial Development Organization (UNIDO) 2025.The city-industry-climate nexus: Cities as engines of global net-zero transitions in a shifting world. All images © Unsplash contributors.Cover photo © Envato. FOREWORD Two thirds of the world‘s population will live in urban areas by 2050. This is not only a challenge, but anopportunity. Cities, particularly in low and middle-income countries, are central to decarbonization andcreating the next wave of sustainable industrialization. Increasing urbanization is a defining development challenge of our times, but the solutions exist – from AIand digitalization, e-mobility and renewable energy, better waste and water management, and more. This UNIDO white paper on city-driven, industry-led and human-focused global net-zero transitions reflectsthis evolving framework for how we live. Cities concentrate people, infrastructure and businesses. They arewhere new industries rise, where markets shit and where most jobs are created. Decarbonizing cities is notonly essential for climate action, but also the path forward for building the industries and economies of thefuture which ensure sustainability and prosperity for the generations to come. We can and must decouple growth from emissions, and urban decarbonization is a part of this. It is a greatchance to shape low-carbon value chains, deploy innovative technologies, reduce poverty, increase foodsecurity, and create growth and decent jobs directly where transformation happens – in factories, transithubs and neighbourhoods. This white paper is also a call to reframe how we think about industrial transformation – while nationalstrategies are necessary and UNIDO is a proud partner in helping to shape them, we must always alsoremember the local level where delivery on such strategies truly happens. Impact on the ground is whatmatters most. Urban decarbonization is a core pillar of inclusive and sustainable industrial development. From advancingmunicipalgreen public procurement to preparing bankable climate-smart projects across variousindustrial sectors, UNIDO works with local and national actors to increase ambitions and translate theminto concrete results. Creating net-zero economies very much depends on how we develop our growingcities, and how people live and work in them. This white paper provides the outline for making thattransformation a reality. Gerd MüllerDirector General, UNIDO EXECUTIVE SUMMARY5-7 Introduction8 02 – Solutions14-18 Appendix A: UNIDO’s technical cooperation leversand urban-industrial sectors in focus 21-31 Appendix B: Project examples32-35 Bibliography37-38 EXECUTIVE SUMMARY VISION STATEMENT In an era marked by structural global transitions, cities, particularly in low- and middle-income countries(LMICs), are poised to become the critical arenas for climate action and socio-economic progress. Thedecarbonization of cities and urban communities is not merely a climate imperative. It is an industrialdevelopment strategy for an inclusive and sustainable future. Decarbonizing cities creates markets for cleanindustries, reduces environmental, social and economic risks, and builds resilient economies. It is not justabout solar rootops and electric buses. It is also about transforming the urban-industrial systems that powerurban life, from the production of cement, steel, textiles and food, to the organization of logistics, thedevelopment and application of cleantech, and the management of waste. This white paper sets forth a visionfor a city-driven, industry-led and human-focused global t