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This Sunday, we join the global celebration of World Cities Day, highlighting the promotion of sustainable urbanization and international cooperation in tackling shared urban challenges. As we mark this anniversary alongside the United Nations Conference on Climate Change in 2021, we dedicate this blog to addressing the key urban threats faced by our region, with a particular focus on the interplay between cities and the environment. Our aim is to raise awareness of the pivotal role cities play and the critical juncture we find ourselves in, striving for sustainable and resilient development in Latin America and the Caribbean (LAC).
What challenges do cities in our region face?
With 81% of the population residing in urban areas, LAC stands out as one of the most urbanized regions worldwide. However, significant challenges persist within the urban landscape, including the pressing need to address the housing deficit, as 45% of the urban population in the region live in precarious housing conditions. High levels of housing informality, inadequate urban planning, limited access to services, and the impacts of climate change on informal neighborhoods are among the challenges that demand urgent attention.
Despite the efforts made in recent decades, at least 20% of LAC’s urban population still resides in informal neighborhoods. These communities often find themselves situated in high-risk areas without basic infrastructure, rendering them particularly vulnerable to severe weather events associated with natural disasters. This issue is of paramount importance considering that, over the past 30 years, more than 91 million inhabitants and 24 million homes in our region have been affected by floods or storms.
In 2020 alone, the hurricanes Eta and Iota affected approximately 9.9 million people, causing substantial damage to infrastructure, especially in Honduras, Guatemala, Nicaragua, and Colombia. This year, in addition to grappling with the ongoing COVID-19 emergency, LAC continues to battle the consequences of climate change and natural disasters that have plagued the region. The recent 7.2 magnitude earthquake in Haiti on August 14 stands as a poignant example, leaving 2,246 dead, 12,763 injured, and displacing over 26,200 individuals. Thus, the question arises: how can we forge safer and more resilient cities that account for climate change and natural disasters?
The IDB and its 2025 Vision: Opportunities for Sustainable and Resilient Urban Development
Within the IDB’s Housing and Urban Development Division, we are steadfast in our commitment to integrate the mitigation of climate change effects into city management and address the existing development gaps within the region. Notably, last year, 57.4% of the Division’s investments were allocated to adaptation and mitigation projects. This demonstrates that, for the IDB, climate change, housing, and cities form part of a cohesive framework.
Throughout 2021, our efforts have centered around supporting a green and equitable recovery process. This includes actions targeting informal areas, comprehensive sustainability strategies, and initiatives that bolster adaptation and mitigation of climate change impacts within cities. One such example is the neighborhood improvement project in Chile, which provides $100 million in financing to support vulnerable populations.
Furthermore, we strive to ensure that cities in our region do not lag behind in the economic and social recovery necessitated by the pandemic. To achieve this, we are dedicated to enhancing climate change resilience through capacity building, dialogues, and the exchange of knowledge and solutions. Aligned with the IDB Vision 2025, our Division operates with the primary objective of constructing a sustainable recovery from the pandemic. This vision prioritizes the adaptation of our cities to climate change and the creation of sustainable formal employment opportunities.
Outlined below are key areas of action being pursued by our Division in 2021. These initiatives align with the 2025 vision and strive for the sustainable and resilient development of our cities:
- Adapting Cities to Climate Change and Strengthening Resilience
To ensure our cities can withstand the adverse effects of climate change, it is crucial to incorporate local population knowledge and opinions into urban planning and investment decisions. Engaging local stakeholders, following latest urban trends, and utilizing cutting-edge urban tools and institutions can significantly enhance project design and execution. Moreover, reducing the local financing gap can be achieved through financial innovation tools such as local fundraising, sustainable bonds, green funds, and multilateral banking, enabling cities to implement green and climate-focused projects effectively.
- Promoting Biodiverse Cities
Accelerating the recognition of natural capital and biodiversity within urban areas is a pressing necessity. We must prioritize nature-based solutions and foster the coexistence of diverse life forms in our cities. How can biodiversity and ecosystem services become critical pillars for enhancing urban quality of life beyond human existence? The publication “Biodiversity and Resilient Cities in Latin America and the Caribbean” serves as a valuable guide for decision-makers, providing practical strategies and methodologies to generate tangible benefits from biodiversity promotion in cities. It emphasizes the importance of dialogue, understanding, and financing mechanisms that protect and enhance biodiversity within urban environments.
- Developing the Housing Sector to Accelerate Economic Recovery
The housing sector serves as a powerful tool to stimulate sustainable and resilient recovery in LAC. Its direct impact on economic reactivation is evident, as the construction sector accounts for 13.1% of the region’s GDP, with residential construction representing 45% of the total. By prioritizing housing sector development, we can drive economic growth while addressing pressing social and environmental challenges.
The future of cities in Latin America and the Caribbean
Climate change, biodiversity loss, and urban informality loom as significant challenges confronting cities in our region. These tensions, compounded by the devastating impacts of the COVID-19 pandemic, have led to widespread social, cultural, economic, and health repercussions. However, the cities of Latin America and the Caribbean possess the potential to recover, adapt, and prepare for the array of challenges that lie ahead in the short, medium, and long term. The Housing and Urban Development Division of the IDB is committed to supporting the innovative and robust development of cities across the region, providing technical and financial assistance, sharing knowledge, and promoting best practices that enable LAC to meet its climate change adaptation goals.
To ensure you stay updated on the latest blogs, news, and publications from the Housing and Urban Development Division, we invite you to register for our monthly newsletter. We also encourage you to share your thoughts and opinions on the significance of resolving the housing deficit and adapting our cities to climate change in the comments section below.
Authors listed by alphabetical order
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