According to the International Energy Agency's latest report on smart cities, new technologies and increased connectivity are opening massive opportunities for city-level authorities to develop efficient, sustainable energy solutions that enable municipalities to accelerate their transition towards a clean, low-carbon future. Although cities generate more than 80% of the global GDP, they consume over two-thirds of the world's energy and account for more than 70% of global CO2 emissions, which will require leveraging digital solutions to drive a sustainable energy transition and reach net zero by 2050.
However, as a recent article from the Harvard Business School illustrates, advancing the concept of smart cities can be challenging and expensive. But, through well-designed public-private partnerships (PPPs), a Deloitte report highlighted that private-sector incentives could be aligned with economic growth and net-zero goals set by local municipalities to unlock the value of technology and bring a critical mass of players together to spur sustainable economic development.