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publicationJune 3, 2025

Banking on Cities: Investing in Resilient and Low-Carbon Urbanization

Banking on Cities

Highlights

  • This report highlights the substantial investments required to build more resilient and low-carbon cities in low- and middle-income countries. These investments are crucial to strengthen essential infrastructure, unlock new jobs, and ensure more sustainable urban development.
  • Resilient and low-carbon urban development in all low- and middle-income countries will cost between US$ 256¨C821 billion per year through 2050. This represents between 0.8¨C2.6% of all low- and middle-income countries' combined GDP.
  • While the investment needs are substantial, they are not out of reach. The report outlines three fundamental strategies to bridge the gap to pay for these critical investments, focused on funding, financing, and efficiency.

 

Cities are engines of economic growth and job creation, and their future pathways will shape global development outcomes for decades to come. 

But the success of this transformation depends on making the right investments now¡ªinvestments that strengthen essential infrastructure, unlock new jobs, and build cities that are more sustainable and resilient. 

The charts below visualize the key findings from the World Bank¡¯s  report, which estimates the annual investment needed through 2050 to support resilient and low-carbon urban development across low- and middle-income countries.

These are not additional "climate costs." They¡¯re the foundational investments cities need to function well and grow equitably in a changing world. Done right, they can drive productivity, improve services, reduce fiscal risks, and create millions of local jobs.

So how much investment is needed? What are the key investments in different sectors? And where can cities and countries find the resources to fund and finance this transition?

Scroll down to find out. 

To sum up,  means betting on the engines of tomorrow¡¯s growth, jobs, and opportunity. For low- and middle-income countries, the right urban investments can unlock enormous economic potential¡ªif they¡¯re made wisely, inclusively, and urgently. With strategic funding, smarter financing, and greater efficiency, cities can lead the way toward a more sustainable, resilient, and prosperous future.