The strength and quality of China’s growth in the coming decades depends on how its cities develop. Strategic low-carbon and sustainable urban infrastructure investments and supportive spatial policies for developing clean, compact and connected cities could unlock a myriad of economic, environmental and social benefits. It is critical to focus on energy, buildings, ‘new infrastructure’ and transport sector investments and apply fiscal strategies that both empower municipalities and incentivise these types of investments.

This report explores how cities can support China to accelerate towards high-quality growth and carbon neutrality. It provides a detailed exploration of the economic case for transforming China’s urban development model, outlines key priorities to be taken in specific sectors and sets out strategies for financing this transition.

This report was led by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics, the World Resources Institute (USA) Beijing Representative Office, Hong Kong University of Science and Technology and Tsinghua University. It serves as the culmination of an ambitious, multi-year research programme from the Coalition for Urban Transitions’ China Country Programme.