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THE ECO-CITY: EXPLORING THE GREEN ROUTE IN

HOUSING, TRANSPORT AND FOOD


September 2018
INTRODUCTION
THE ECO-MOVEMENT
HOUSING, FOOD AND TRANSPORT AS ECO-
DRIVERS
CASE STUDIES
 HOUSING
 TRANSPORT
 FOOD
KEY POINTS FOR A SUCCESSFUL BUSINESS
STRATEGY
INTRODUCTION

Scope

The report analyses three key areas of ecological sustainability in cities: housing, Disclaimer
food and transport. Cities have the ability to dispel the stereotypical appearance Much of the information in this
briefing is of a statistical nature and,
as major polluters of the world by embracing green polices which limit emissions while every attempt has been made
of carbon dioxide gas. Cities face a range of challenges such as congestion and to ensure accuracy and reliability,
Euromonitor International cannot be
air pollution which all contribute to poor urban health. Adopting eco-friendly held responsible for omissions or
measures in the form of greener transport or locally-grown food can improve errors.
Figures in tables and analyses are
citizens’ health and lead a city to become more ecologically sustainable. calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader
Challenges Sustainable The Eco City discretion is advised.
Policies
The adverse effects of global
• Population • Eco-housing • City which warming on the environment are
precipitating a new approach to
growth • Green forms manages to
urban living - one that seeks to
• Climate of urban become self-
sufficient and provide liveability and
change mobility workability in cities while
• Air pollution • Urban farming ecologically
simultaneously preserving the
sustainable,
• Water • Renewable natural environment. The
harnessing
shortage energy strategy briefing examines how
the power of
• Energy • Conservation smart
cities are incorporating
demand of resources sustainable and ecological
solutions. approaches to housing,
• Waste
transport and food production
management
and how businesses should
position themselves to achieve
success.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 3
INTRODUCTION

Key findings

Cities are under stress With 60% of the global population set to be urban by 2030 and a trend that is set to
persist, cities around the world will face a myriad of issues: maintaining low levels
of air pollution; managing traffic congestion; ensuring housing affordability to the
masses; and keeping cities abreast of rising sea levels.
Technological Technological improvements are opening up new business opportunities which
advances bring new were previously unprofitable. For example, the improving efficiency of LED lights
opportunities has been an important component of the urban farming movement. LED lighting
can be up to 80% more energy efficient compared to traditional incandescents.
Housing Housing absorbs the largest portion of consumer expenditure for urbanites.
Beyond making homes just energy efficient, there are a number of other issues at
play such as ensuring new developments are dense, multi-purpose, conserve
water and are produced from ecologically-sourced materials.
Food Urban areas are being used for commercial vertical farming purposes. Hydroponic,
aquaponic and aeroponic technologies are revolutionising agriculture in cities,
allowing crops to be grown using less water and free of pesticides. Nonetheless
issues related to start-up costs and crop variety are some of the current limitations
of urban farming.
Transport Smartphone technology has been instrumental in revolutionising urban mobility by
proving ride hailing and car-bicycle share schemes at the click of a button. Still, a
well-developed and extensive public transportation system fuelled by greener
forms of energy is the most efficient mobility method in cities.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 4
INTRODUCTION
THE ECO-MOVEMENT
HOUSING, FOOD AND TRANSPORT AS ECO-
DRIVERS
CASE STUDIES
 HOUSING
 TRANSPORT
 FOOD
KEY POINTS FOR A SUCCESSFUL BUSINESS
STRATEGY
THE ECO-MOVEMENT

Introducing eco-cities

What are eco-cities?

• Eco-cities is a generic term assigned to urban


initiatives which espouse ecological
sustainability. Cities should be as self-sufficient
as possible, producing their own energy where
needed and utilising their waste in a
sustainable manner through recycling and
reusing.

What is giving rise to the growth of


eco-cities?

• Cities are the engines of economic growth, yet


they exert undesirable effects through
excessive consumption of resources and
energy. They emit high levels of pollution which
give rise to undesirable long-term effects such
as global warming and rising sea levels. Rising
sea levels are risking the assets of low-lying
coastal cities, which, if left alone, will likely lead
to sizeable economic and social losses.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 6
THE ECO-MOVEMENT

Clean Lifers: the key consumer trends influencing eco-cities

 Clean Lifers is one of the top 10


Euromonitor consumer trends for
2018. It underlies the desire of
young adults— predominantly
ones aged 20-29 years to lead a
more environmental and health
conscious life.
 However, Clean Lifers need not
be exclusively 20-29 year-olds.
Healthy lifestyle choices are also
very important among other age Follow your interests Experience over wealth
segments. For example,
according to Euromonitor’s
Consumer Lifestyle Survey, in
2017, 62% of respondents aged
over 60 years of age viewed
eating fruits and vegetables as
being “very important” compared
to 53% of 15-29 year-olds. Clean
Lifers place great value on being Exercise and wellness
health but are also well aware of
global issues such as climate
change and air pollution.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 7
THE ECO-MOVEMENT

The urban challenges impacting cities

Population growth Climate change Air pollution

How will some of Air pollution


Between 2017- the largest cities already claims
2030, the world’s in the world the lives of 4.2
urban population manage to stay million people
will rise by one abreast of the annually. How
billion. How will effects climate will cities
cities cope with change will have manage pollution
the rise? on urban and maintain
livelihoods? growth?

Water shortage Energy demand Waste management

How are cities How will cities How will cities


expected to accommodate contribute to the
mitigate the the energy circular economy
shortage of requirements of by ensuring
water but at the new households waste is
same time, while at the managed
ensure adequate same time properly and re-
supply to reducing carbon used where
growing regions? emissions? possible?

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THE ECO-MOVEMENT

Developing cities to be face numerous sustainability challenges

 Urbanisation has led to cities becoming the victims


of their own success. While it has brought Cities generate 70% of global carbon dioxide
economic growth, it has fostered a myriad emissions
environmental problems which are impacting the
economic wellbeing of urban and national
governments. Cities account for 75% of the world’s energy usage
but just 3% of the total land cover
 Governments are beginning to understand the
pitfalls of the old city model which turned a blind
eye to environmental degradation. While the eco-
The ecological impact made by humanity already
city developments are gaining ground, they are, by exceeds the Earth’s carrying capacity by 50%
and large, springing up in developed markets. Yet
the onus of creating sustainable future cities mainly
lays on developing markets such as China, India Congestion
and Nigeria. • The top 10 most congested cities were all
 Traffic congestion, for example, is a burden on developing in 2016. According to
TOMTOM’s Traffic Index, Mexico City was
productivity and for developing cities to realise their the most congested, followed by Bangkok
economic potential, investing in policies advocating and Jakarta.
efficiency and sustainability should be a key
priority. Air pollution
 Building sustainable cities which live in harmony • Developing cities tend to feature higher air
and preserve the natural environment is the way pollution. Beijing recorded mean
forward; but this needs to be done collectively on a concentration of PM2.5 particulates of 73
global level - environmental benefits will not be µg per cu m - seven times above WHO
reaped if only an exclusive set of cities persevere. advised levels.

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THE ECO-MOVEMENT

Smart solutions for smart and sustainable success in cities

 The birth of the Smart City


model is anticipated to remedy Smart Parking
urban areas of the sustainability • A system that guides drivers to available
challenges mentioned earlier car park spaces in the city. It helps
on. drivers to find car parking spaces
 There are no formal definitions quicker.
of a Smart City, yet the onus is
on utilising data in integrating
physical urban structures into a Smart Lighting
digital system via internet of
things (IoT) and the internet to • Streetlights sense drivers and passers
effectively and efficiently by– reducing light intensity when no-one
manage urban resources. is in close proximity, thus conserving
 The Smart City concept forms electricity.
part of the wider eco-cities
movement though the idea of
the former is on utilising high- Smart Irrigation
tech digital technology on issues
• Using water and humidity sensors to
such as controlling air pollution,
identify how much watering of plants is
lessening a city’s carbon
footprint, minimising energy use
required thereby conserving water.
and embracing renewable
energy sources.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 10
INTRODUCTION
THE ECO-MOVEMENT
HOUSING, FOOD AND TRANSPORT AS ECO-
DRIVERS
CASE STUDIES
 HOUSING
 TRANSPORT
 FOOD
KEY POINTS FOR A SUCCESSFUL BUSINESS
STRATEGY
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Housing, food and transport: key sectors to reduce the carbon footprint

 The eco-city movement Mean Share of Urban


examined in this report centres 1 Housing Consumer Expenditure
on three key sectors: housing, 2017
food and transport. In 2017, • People spend their largest
Housing
amount of time at home.
urbanites spent 49% of their Creating a home which is Food and Non-
budget on the three categories, resource efficient will not only Alcoholic Beverages
underlying their relative reduce utility costs, it will also Transport
importance to urban reduce the carbon footprint.
Miscellaneous Goods
households. and Services

 Educating consumers about


2 Food Health Goods and
Medical Services
ecological sustainability and • Growing nutritional, cost- Hotels and Catering
getting them to embrace the effective and locally-sourced
eco-friendly movement is the food will be imperative for cities Leisure and Recreation
challenge for municipal to meet the demands of
Household Goods and
growing urban populations.
governments. For example, Services

purchasing a dearer apartment Clothing and Footwear


built from ecological material 3
with sizeably less electricity Transport Communications

usage, compared to a less • Diesel- and petrol- powered Alcoholic Beverages


and Tobacco
expensive yet less energy- vehicles contribute to large-
efficient one; or swapping the scale urban pollution. The onus Education
should be on greener mobility
car for in favour of public which negates the use of fossil 0% 10% 20%
transportation when commuting. fuels. % of total consumer expenditure

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Housing: building energy-efficient homes for future generations

Emerging and developing countries will account for 90% of growth in global urban households
over 2017-2030.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 13
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Key features of sustainable housing that businesses should follow

Use of renewable energy sources (solar, wind and


biogas); using locally-manufactured construction
Energy- materials; energy-efficient technologies such as
efficient LEDS and natural ventilation systems; and designing
buildings that offer high levels of insulation.

Mixed-use developments: residential, commercial,


Mixed-use retail and entertainment space will create live-work-
play micro-ecosystems helping to reduce travel time,
pollution and contribute less to traffic congestion.
Developments should seek to curtail urban sprawl
through densification. Higher urban density allows for
Dense more efficient use of space and preserves greenfield
sites. It also better helps to promote public
transportation.
Green spaces will provide exercise space,
contributing to healthier urban lifestyles. Green
Green roofing roofing is popping up in a growing number of cities as
and spaces it helps to reduce the “heat island effect” which
reduces temperature of roof surfaces.
Waste needs to be recycled and re-used to power
homes, reduce greenhouse gases and for re-use
Waste (metals and other materials). Households need to be
management educated about the benefits of recycling and have
easy access to recycling containers.

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Affordability vital to successful urban housing developments

 Cities are often renowned for having higher living costs compared to Most Expensive Capital
rural areas or national averages. For example, urban consumers Cities For Housing 2017
spent 21% of their budget on housing in 2017 compared to 20%
Tehran
across countries on average. Bearing in mind that urbanisation will Abu Dhabi
maintain its onward path, governments and developers need to London
ensure that sustainable housing is made affordable to middle-income Helsinki
households. Paris

 However, obstacles to the issue of affordability will surface. Urban Copenhagen


Beijing
space will need to be better managed and developed to
Delhi
accommodate new households. While energy-efficient residential real
Wellington
estate will likely be more expensive in the market compared to non-
Montevideo
energy-efficient homes, their affordability will hinge upon their ability
Zagreb
to reduce utility costs. Dublin
Skopje
Planning
Governments Jerusalem
Brownfield sites permission
need to be Oslo
should be reforms would
more stringent Toronto
better utilised in allow for better
in the allocation Tokyo
increasing the and more
of affordable Prague
supply of effective use of Zurich
homes within
affordable land for Brussels
new property
homes property
developments 0% 25% 50%
developers
% share of expenditure on housing

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

LEED certification growth in residential real estate

 LEED (Leadership in Energy and


Environmental Design)
certification is granted to
buildings adhering to strict
sustainable and ecological
construction practices aimed at
improving ecological efficiency.
 The certification for ecological
sustainability was initially used for
commercial buildings, but over
the last few years it has gained
traction in the residential sector.
Residential Electricity Price per MWh 2007-2017 According to a 2015 Green
400
USD in constant value terms

350
Building Economic Impact Study,
300
it anticipates the market for green
250
residential construction to reach
200 USD100 million in 2018 - up from
150 USD55 million in 2015.
100  LEED certified homes will allow
50 households to hedge against the
0 effects of rising energy prices
2007 2012 2017
which most countries have fallen
Japan USA Germany United Kingdom prey to in recent years.

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Food: vertical farming to help feed rising population

Global food production will grow by 53% in constant value terms over 2017-2030, reaching
USD9.7 trillion. It reflects the rising food demand of the growing global populace.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 17
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Vertical farming to accommodate growing food demand

What is It takes its name from the idea of producing crops in Cities with the Largest
vertical stacked layers, utilising vertical as opposed to horizontal Growth in Real
farming? space. Household Disposable
Incomes 2017-2030
Tripoli

Where are Vertical farms are normally located in disused high-rise San Jose, CA
vertical buildings, warehouses or skyscrapers. The facilities are
farms fully-equipped with climate sensor technology to create Bridgeport, CT
located? the necessary environment to cultivate crops such as
lettuce, kale and strawberries. Canberra

San Francisco
Why has it Technological innovation food security, global warming
gained in and consumer demand for healthier food have prompted Kuwait City
popularity? interest in urban farming. For example, according to the
UN, by 2050, the world’s population is expected to reach Beirut
9.1 billion, requiring a 70% increase in food production to
meet demand. Tel Aviv

Who are the The trend has prospered mainly across affluent countries Napa, CA
main such as Canada, Singapore, the US and Japan. Cities
players in with higher levels of household disposable incomes will Naples, FL
the market? form the major clientele base.
0 20,000 40,000

USD

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Types of vertical farming systems

Hydroponics

• Hydroponics is the most popular vertical farming system.


Plants are grown in soil-free nutrient solutions, with
fertiliser being added to the water solutions.

Aquaponics

• Aquaponics is a closed loop system making use of a


symbiotic relationship between fish and plant crops. The
fish produce nutrient-rich waste and this gets used to
fertilise the crops. The plants, purify the water to ensure
adequate living conditions for the fish.

Aeroponics

• Aeroponics uses air/mist to grow plants using very little


water and no soil. It is the most water-efficient method of
vertical farming, using around 90% less water compared
to hydroponic systems.

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Evaluating vertical farming

Finding the right marketing mix to achieve profits


Pros Resource efficiency and yields
 The market for urban farming is still in its infancy.
• Vertical farming uses much fewer resources compared
to traditional agricultural practices with estimates Traditional farming methods still dominate in mass
suggesting 70% less water usage. Vertical farming also markets as urban farming is still being seen as a
delivers higher agricultural yields. niche market.
 Urban farmers have commonly chosen priced up
Cons High start-up costs retail channels such as farmers markets, food box
• One of the key barriers to entry in urban farming is the deliveries and direct online sales.
high start-up costs. Finding suitable premises and  In many ways the market is still largely orientated
equipping them with the necessary devices will require
high levels of investment. towards the higher-end consumer market.

Opportunities Prospects for hostile climatic areas


What is the outlook for urban farming?
• Some regions of the world suffer from adverse climatic
conditions which limits their ability to supply their own  Rising disposable incomes, urbanisation and rising
produce. Vertical farming can mitigate the effects of demand for food should spur growth of vertical
adverse climatic factors. farming.
 Currently, vertical farming orientates around a
Threats Urbanisation and real estate costs certain set of vegetables, most commonly leafy
• Urbanisation is bringing an ever greater number of greens. Product differentiation will be an important
people to cities. As land prices rise, it will create greater trend in this market as the technological capabilities
financial hurdles for vertical farmers to initiate a
profitable business.
to grow a wider range of produce are still limiting the
full-blown development of urban farming.

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Transport: sustainable transport to improve efficiency of energy use

Global final consumption of energy by Transport rose 10% over 2012-2017, far more than
Commerce (+6%), Industry (+5%) and Residents (+4%).

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Forces advocating for a rethink of urban mobility

• Traffic congestion not only contributes to air pollution, it also reduces labour productivity and
economic growth.
• To counter the use of passenger cars and mitigate congestion, local governments have introduced
Congestion congestion charges, free public transport use, designated bus lanes and inner city driving bans.

• High levels of particulate matter (PM2.5 especially) have a adverse impact on human health and
contribute to a range of respiratory illnesses such as asthma.
• Transport running on clean energy (solar, wind, biogas) need to be promoted in urban areas. Some
Air pollution companies have introduced innovative methods such as used coffee grounds as biofuel for busses.

• Innovative mobility forms such as ride-hailing and bicycle-share schemes have evolved thanks to
companies harnessing the power of smartphone technology.
Alternative • Alternative mobility forms such as the above-mentioned are also more cost effective (no need to
mobility purchase your own car).

• Lifestyle changes have occurred which have promoted consumers to opt for other forms of mobility
such as public transit or cycling. For Clean Lifers, the diesel/petrol car is seen as a major polluter.
Changing • Living closer to work, the sharing economy and less emphasis on family life have resulted in a
consumer reduced need to own a car.
lifestyles

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Technological innovation changing consumer attitudes to mobility

 The smartphone boom has been


instrumental in changing
consumer habits in urban
mobility. Companies have
leveraged smartphone power to
devise innovative apps such as
Uber, Lyft and Zipcar to
revolutionise the way people get
around cities.
 The sharing economy trend has
also precipitated the advent of
car- and bicycle- sharing
schemes which have allowed
users to make ad-hoc journeys
with just a few touches of a
smartphone. Once the relevant
In 96% of cities, over New York saw a
app is downloaded, the user is
able to access the service and
80% of households 607,000 fall in the
travel. Mobility has branched owned a mobile number of passenger
away from the personal car to phone in 2017 cars over 2012-2017
encapsulate a multitude of means
of travel offering, convenience,
comfort and time efficiency.

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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS

Public transit: the gold standard of eco-urban mobility

Cities with Fastest Rising  The rise of alternative mobility forms via e-hailing and car-sharing
Public Transit Trips have disrupted the market for mobility noting their ad-hoc
2012-2017 convenience. Yet these systems are likely to stand as compliments to
Guang- a well-developed and coordinated public transportation system as
zhou
opposed to being the prevailing means of mobility.
Shanghai
 Public transport is still the most efficient form of transport given its
ability to transport large numbers of people efficiently, quickly and
Tokyo
effectively. Mobility systems such car-share schemes still depend on
the use of a car - the same can be said of e-hailing systems such as
Rome
Uber. Large and population-dense metropolises stand to greatly
São benefit from public transport.
Paulo

Wuhan

Tehran

Paris

Mexico
City

Istanbul

0 400,000 800,000 1,200,000


Total trips 000s

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INTRODUCTION
THE ECO-MOVEMENT
HOUSING, FOOD AND TRANSPORT AS ECO-
DRIVERS
CASE STUDIES
 HOUSING
 TRANSPORT
 FOOD
KEY POINTS FOR A SUCCESSFUL BUSINESS
STRATEGY
CASE STUDIES

Case study: eco-cities in housing, food and transport

Housing Food

Transport

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CASE STUDIES

Housing: Stockholm

Hammarby Sjöstad: an eco-housing oasis Key facts on Stockholm


 Hammarby Sjöstad is a district located in southern Household
• At 2.4 per
Stockholm. It has undergone a major Disposable Income
household,
redevelopment— it was previously the location of a Stockholm has the of Select Cities 2017
run-down port and industrial area. highest average Geneva
 The district forms a highly dense and compact household size of
any Swedish city in Zurich
settlement structure that incorporates 4- or 5-
storey buildings with green courtyards. The 2017 Oslo
development features green roofing which helps London
create habitats for wildlife, absorbs rainwater and 2.4 Stockholm
provides better insulation. It also helps to mitigate
the “heat island effect” which leads to higher urban Paris
temperatures. Dublin
 Energy self-sufficiency is an important element of • Stockholm’s Helsinki
the district’s development; residents produce population density of
Brussels
around half of their energy from renewable fuels, 350 per sq. km. is
re-use of heat waste and biogas. The district has Sweden’s highest in Rome
numerous solar panel installations on walls and 2017, though Amsterdam
rooftops. internationally it is a
rather sparse city. Berlin
 The heating system is also supported by heat
waste transfers from the Hammarby thermal plant 350 per Lisbon

which it takes from the Henriksdal sewage sq. km. 0 80,000


USD
160,000
treatment plant and uses it to heat homes.

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CASE STUDIES

Food: Boston

Boston’s growing business of urban farming Key facts on Boston

 Boston’s start-up culture coupled with the passing • Boston with USD244 Disposable Income
of local zoning laws has helped instigate a growing bn is the 10th largest Growth Across Key
interest in urban farming across the US’s 11th food and non- US Cities 2012-2017
largest city in 2017. The urban farming movement alcoholic beverage Dallas, TX
took a leap forward after the passing of Article 89 consumer
expenditure market Phoenix
in 2013 which established zoning regulations in the US in 2017
permitting commercial urban farming practices. It Miami
allowed farming to be carried out in freight
containers, rooftops and on ground level farms.
10th Chicago

 A number of companies specialising in the field of San Francisco


urban farming have popped up: Fright Farms, Los Angeles
Corner Stalk Farms and Fenway Farms.
• Boston has among
Embracing the recycle and re-use movement, the most affluent
Boston

Freight Farms sells 40-foot hydroponic freight households in the Philadelphia


containers powered by solar energy to consumers US with 40%
and businesses wishing to venture into urban earning disposable New York

farming. One company which has done this is incomes over


USD150,000 in 2017 Washington
Corner Stalk Farms which uses the hydroponics
system to grow various vegetables which are then Houston

sold on at farmers’ markets and online via Amazon


40%
0 5 10 15 20
Fresh. %

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CASE STUDIES

Transport: Helsinki

Mobility-as-a-service rolled out in Helsinki Key Facts on Helsinki

 Helsinki has been at the forefront of the urban • 92% of households Mean Concentration
mobility revolution. In 2016, the city introduced owned a bicycle in of PM2.5 Particulate
Whim - a mobility-as-a-service app that allows Helsinki in 2017 Matter 2016
users to plan and pay for public and private which is one of the
transport services in a city - be it car-share, cycle- highest rates of Milan
possession globally
share, train, car rental or bus. Barcelona

 Users simply specify a destination and the app Berlin

presents a journey plan and cost. Users can either 92% Paris
opt for a pre-paid monthly or the pay-as-you-go Tokyo
service. Amsterdam
 Disruptive technologies are reshaping many London
industries around the world. Netflix, for example, • Helsinki has one of Madrid
altered the entertainment industry by providing on- the safest roads in Los Angeles
demand media services to suit the preferences of Western Europe,
Oslo
individual tastes using a subscription service. recording just 66
road injuries per Sydney
 Whim sets itself as a disruptor in the transport and 100,000 people in Toronto
mobility industry by introducing a subscription 2017
Helsinki
service that encompasses a large number of 66 per Stockholm
alternative transport modes. The vision is quite
clear: make the personal passenger car obsolete. 100,000 0 10 20 30
Micrograms per cu. m.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 29
INTRODUCTION
THE ECO-MOVEMENT
HOUSING, FOOD AND TRANSPORT AS ECO-
DRIVERS
CASE STUDIES
 HOUSING
 TRANSPORT
 FOOD
KEY POINTS FOR A SUCCESSFUL BUSINESS
STRATEGY
KEY POINTS FOR A SUCCESSFUL BUSINESS STRATEGY

Businesses should monitor government subsidies carefully

 Government grants, subsidies


and tax breaks have been vital to
the growth of green energy and
ecological transport. Yet some Businesses should keep an
Businesses should stay
governments are tightening rules eye out for changes in
ahead of the game by
on subsidies. government subsidies which
producing green products
could adversely impact a
 Electric and hybrid cars have which are innovative and
business model and make a
made great inroads in some key competitive.
product unprofitable.
markets such as China and
Norway. In the Chinese market,
new registrations rose 52 times
over 2012-2017, influenced in
large part by available
government subsidies.
 However, the government is now
adjusting its subsidy programme.
In February 2018, electric vehicles
travelling more than 400km on a
single charge have an additional
funding of CNY50,000; minimum
subsidies for electric vehicles now
start at 150km on a single charge
- up from 100km in 2017.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 31
KEY POINTS FOR A SUCCESSFUL BUSINESS STRATEGY

Business opportunities in an eco-city

Businesses Going Green


Electric vehicles are disrupting the Property designers should embrace
market for passenger cars. methods that reduce water waste,
Government subsidies are making by for example, building rainwater
them an attractive option in a rising collection systems.
number of countries.

Competition will grow for energy- Public transport - buses, trams, trains
efficient products as consumers and metro systems should be
become more attracted by the developed to utilise renewable energy
potential cost savings they provide. sources such as solar, wind and
biogas.

Urban agri-business can be the next Recycle and reuse is a trending


new thing. Continued advances in movement. Various products such as
LED lighting will improve the food packaging and paper bags are
profitability of this new business being made from recycled wares.
venture form.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 32
KEY POINTS FOR A SUCCESSFUL BUSINESS STRATEGY

Concluding remarks

 The worldwide concern surrounding the planet’s


environmental wellbeing provides both a challenge and
an opportunity, especially for cities that are at the
centre of the sustainability debate.
 A number of cities are embracing the trend by
improving the sustainability of their housing, food
supply chains and/or transportation systems.
Inclusively embracing all systems is an important step
as cites attempt to achieve ecological efficacy. Yet as
mentioned earlier, the lack of an international standard
limits the ability of cities in realising the identical
ecological sustainability.
 Technological innovation is continuously reducing
costs and improving efficiency and businesses are
beginning to utilise them in solving practical solutions.
For example, the improving efficiency of LED lighting
has spurred the growth of vertical farming or the
improvements in battery technology have made the
electric vehicle a practical reality. Harnessing the
technological improvements in a business strategy
could be the difference between success and failure
and something companies should not overlook.

© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 33
FOR FURTHER INSIGHT PLEASE CONTACT
Fransua Vytautas Razvadauskas
Senior Cities Analyst
Fransua.Razvadauskas@Euromonitor.com

RELATED ANALYSIS
Smart Cities: Empowering the Globe’s Urban Ecosystems, Jun 2018

Urban Core Revival: Drivers, In-Depth Look at Cities and Implications for Businesses,
Mar 2017
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