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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.
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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
THE ECO-MOVEMENT
Introducing eco-cities
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 6
THE ECO-MOVEMENT
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 7
THE ECO-MOVEMENT
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 8
THE ECO-MOVEMENT
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 9
THE ECO-MOVEMENT
© 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
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 12
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
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
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 14
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
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
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 15
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
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.
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 16
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
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
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
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 18
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
Hydroponics
Aquaponics
Aeroponics
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 19
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 20
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
Global final consumption of energy by Transport rose 10% over 2012-2017, far more than
Commerce (+6%), Industry (+5%) and Residents (+4%).
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 21
HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
• 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
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HOUSING, FOOD AND TRANSPORT AS ECO-DRIVERS
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
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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
Housing Food
Transport
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 26
CASE STUDIES
Housing: Stockholm
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 27
CASE STUDIES
Food: 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
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CASE STUDIES
Transport: 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
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
© Euromonitor International THE ECO-CITY: EXPLORING THE GREEN ROUTE IN HOUSING, TRANSPORT AND FOOD PASSPORT 31
KEY POINTS FOR A SUCCESSFUL BUSINESS STRATEGY
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.
© 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
© 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
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