BrazilDeveloping smart cities of the future to meet urban challenges and trends
A range of factors, including economic and population growth, digitalisation, sustainability, and external shocks will reshape the nature of urban challenges in the coming decades. Experts from NEOS Advisory delve into the changing landscape, and share what is needed to create future-ready cities and communities.
Over the coming decade, city residents, businesses, and planners will face significant challenges in developing and maintaining thriving urban environments.
Economic and population growth will be the primary source of urban challenges over the next decade. Cities are growing rapidly, placing pressure on infrastructure, housing, and public services. The UN forecasts that 2.2 billion additional people will live in cities by 2050, increasing the urbanisation rate to two-thirds from half currently.
On the digital side, increased digitalisation of cities presents both opportunities and challenges. On one hand, digital tools enable better data collection, real-time monitoring, and improved efficiency in services such as traffic management, energy distribution, and waste disposal. However, these advancements also create significant challenges, such as cyber risks, loss of economic activity and jobs due to automation, and a growing digital divide between groups.
In the case of sustainability, threats such as climate change, water scarcity, environmental degradation, pollution, and the depletion of natural resources, among many others, are putting strain on the development and liveability of cities.
Cities are meanwhile becoming increasingly vulnerable to external shocks, such as rising migration, natural disasters, and health epidemics. These shocks can cause significant economic damage, amplify existing social divisions and strain infrastructure, affecting urban resilience.
Principles of Future-Ready Cities And Communities
To address urban challenges, cities must combine traditional methods, such as building more infrastructure with innovative new solutions.
At NEOS Advisory, we have developed a framework to develop future-ready cities and communities, encompassing three categories: Infrastructure Capacity, Resilience & Crisis Management, and Sustainability.
1) Boosting Infrastructure Capacity
Cities can increase infrastructure capacity by expanding and modernising transport networks, integrating smart technologies to manage traffic flow, and promoting sustainable mobility solutions. Electrifying transport fleets and enhancing public transport accessibility, as in Singapore, also reduces emissions. Smart city initiatives, like Egypt’s Vision 2030, improve service efficiency and resilience through digital infrastructure.
Additionally, adopting circular land use strategies, such as redeveloping brownfield sites, supports urban growth without expanding into greenfields, improving environmental health and reducing urban sprawl.
Enhance Transport Network
To effectively meet rising demand, urban transport networks must get bigger, smarter and more carbon-efficient. Mass rapid transit solutions orientated around buses and rail, complemented by cycle lanes, can vastly increase the passenger density of transport infrastructure. This is preferable to focusing on car-orientated transport networks in rapidly expanding cities, which can ‘lock in’ traffic congestion problems for decades.
Embracing smart technologies to manage traffic flow and improve mobility can also increase a transport network’s capacity by dynamically managing supply and demand. Finally, electrification of the public and private transport fleets, requiring the installation of vast charging networks, can rapidly bring down transport sector emissions.
Case Study: Singapore
Singapore aims to ensure that by 2030, eight out of 10 households will be within a 10-minute walk of a train station. This is part of its broader vision for a car-light society, aiming to make public transport more accessible and convenient for residents. By expanding its rail network and improving connectivity, Singapore intends to reduce dependence on private vehicles, encourage the use of public transit, and enhance urban mobility.
Additionally, Singapore’s i-Transport system leverages traffic data from numerous sensors to generate actionable insights for traffic management and planning. This intelligent transport system facilitates real-time adjustments and long-term planning, significantly improving the efficiency of Singapore’s road networks and contributing to safer driving conditions. Live updates for drivers also help to manage demand during peak travel times.
Smart Cities
Smart cities enhance urban management and economic growth by leveraging technology to streamline services, reduce costs, and attract investment. One key benefit is reducing operating costs for public services like transport and waste management. In the above case study, Singapore’s i-Transport system lowers the cost-per-passenger for public transport, lessening the tax burden on residents and businesses.
Additionally, smart infrastructure can help cities better respond to emergencies, reducing the economic impact of shocks like natural disasters or pandemics. As 80% of urban structures will still exist in 2050, retrofitting existing urban structures to incorporate smart capabilities will be essential to creating smart cities.
Case Study: Egypt’s Smart Cities
Egypt’s Vision 2030 includes the creation of 37 smart cities nationwide. These cities will have modern digital infrastructure, renewable energy sources, green spaces, and intelligent transportation systems. The New Administrative Capital will be the flagship development.
As part of the initiative, the government of Egypt and Chinese technology firm Huawei agreed in August 2024 to cooperate on developing the national smart grid. This technology will enhance electricity reliability by detecting faults in the network and automatically reconfiguring it to maintain stability.
Circular Land Use
A circular approach to land use in cities centred on redeveloping brownfield sites – previously developed but now vacant or underused land – can significantly reduce pressure on urban land. This can prevent outward urban expansion, safeguarding agricultural land and natural habitats. Moreover, brownfield revitalisation brings economic benefits, such as job creation and developing new commercial or residential spaces. It also addresses environmental concerns, as redeveloping these areas often involves cleaning up contaminated land, thus improving public health and the environment.
Additionally, using existing infrastructure on centrally located brownfield sites can reduce commute times and lower transportation-related emissions. Cities also gain aesthetic and social advantages by reducing urban blight and rejuvenating neighbourhoods.
Case Study: European Union
The EU sustainability strategy targets zero net urban land take by 2050, aiming to stop converting greenfield land. Cities in the bloc are encouraged to prioritise brownfield land development by transforming former industrial and underused sites into mixed-use developments. To facilitate redevelopment, the city implements policies that streamline planning processes, offer financial incentives, and promote public-private partnerships.
The European Union already reduced net land take by half between 2000 and 2018.
2) Resilience & Crisis Management
Cities can enhance resilience by diversifying energy and water sources, improving efficiency through integration with broader markets, and regulating utilities for reliability and affordability. Modernising infrastructure with smart technologies enables faster crisis responses, while digital platforms enhance communication and coordination.
Crisis preparedness plans ensure effective responses to emergencies, and climate shock mitigation strategies, such as green-blue infrastructure and flood defences, reduce vulnerability to extreme weather. Case studies from the Nord Power Pool, Singapore, Copenhagen, and Rotterdam illustrate these approaches in action.
Energy and Water Security
Cities can enhance water and energy security through several strategies, including diversifying supply. By incorporating multiple, decentralised sources, such as renewable energy (solar, wind), alongside traditional grids and varied water sourcing, cities reduce their reliance on single sources. This ensures continuity during disruptions like natural disasters or cyberattacks.
Expanding into and integrating with national and transnational energy and water markets can also improve efficiency and reduce supply variability, for instance, facilitating utilities’ electricity supply and demand management.
Effective utility regulation also facilitates the reliable and affordable provision of utilities. The mismanagement of South Africa’s state electricity utility, Eskom, has resulted in a national electricity crisis, with mounting shortages in critical economic centres such as Johannesburg, Cape Town, and Durban.
Case Study: Nord Power Pool
Countries in the Nord Power Pool (Norway, Sweden, Denmark, Finland, Lithuania, Latvia, Estonia) trade electricity across borders, enhancing energy security by diversifying sources and reducing the risk of localised shortages. This cooperation promotes market stability and supports renewable energy integration by reducing baseload electricity requirements in each country.
Case Study: Singapore
Singapore’s small geographic area limits the potential for large-scale renewable energy production. As a result, the country is increasing power purchase agreements (PPAs) with neighbouring countries. Ten low-carbon electricity import projects from Australia, Cambodia, Indonesia, and Vietnam have received conditional approval. Singapore seeks to import around 6 GW of low-carbon electricity by 2035, up from the initial target of 4 GW.
Modernisation & Digitisation
Modernisation and digitisation of infrastructure significantly enhance crisis management and resilience by enabling faster, data-driven responses. Digital transformation can also improve many other aspects of utilities’ businesses, such as increasing productivity, revenues, and profits. Smart technologies, such as real-time monitoring systems, help detect issues like power outages, floods, or traffic disruptions early, allowing cities to respond swiftly.
Digital platforms facilitate better communication between authorities and the public during crises, improving coordination. Modern infrastructure with resilient materials and designs can withstand extreme weather or other disruptions, reducing damage and downtime.
Smart services in e-government increase local government’s capacity to respond to crises by improving citizen engagement, reducing costs, and fostering data-driven decision-making. They also enhance efficiency, convenience, and transparency by digitising processes, reducing paperwork, and enabling 24/7 access to public services.
Case Study: Copenhagen
In Denmark, ranked first in the UN’s 2024 E-Government Survey, Copenhagen has used e-government tools to respond to the dramatic influx of refugees since 2015. To support immigrants, the government created newtodenmark.dk, an online portal centralising essential information and services for newcomers. Residents also use a single digital ID to access public services and can propose new laws via e-petitions.
Crisis Preparedness Plan
Cities need Crisis Preparedness Plans to respond to unexpected emergencies, such as natural disasters, pandemics, cyberattacks, or social unrest. These plans help mitigate risks, minimise disruptions, and protect residents by ensuring a coordinated and rapid response. Effective crisis preparedness plans incorporate crisis prevention and preparation, crisis response and communication, post-crisis lessons learned and implementation of actions to mitigate future crises.
Case Study: European Union
The EU mandates that member states develop crisis preparedness plans to enhance resilience against emergencies like natural disasters, pandemics, and cyberattacks. These plans include risk assessments, resource coordination, and response strategies, ensuring efficient collaboration between states and EU institutions to mitigate and manage crises effectively.
Since the Covid-19 pandemic, the EU has introduced additional health crisis preparedness measures. Member states must improve surveillance, stockpiling of medical supplies, and coordinated pandemic response plans, especially in urban areas.
Climate Shock Mitigation
Mitigating climate impacts on cities will require new land-use strategies, including constructing physical defences like sea walls and flood barriers, alongside natural solutions such as increased green (vegetation) and blue (water) infrastructure. Green areas, such as parks, trees, and green roofs, can reduce flooding and urban heat, while blue infrastructure, like canals and wetlands, absorbs excess rainfall and mitigates flood risks.
Mitigating the risk of flooding will be particularly important as coastal and riverine properties are increasingly vulnerable to extreme weather events, hurricanes, rising sea levels, and flooding. Historically, many major cities developed near water for trade, with 14 of the world's 15 largest cities located along coasts or rivers.
Case Study: Rotterdam
Rotterdam is renowned for its innovative water management strategies in response to rising sea levels and increased rainfall. The city has invested in blue-green infrastructure, which includes water plazas, green rooftops, and underground water storage systems. One key example is the Benthemplein Water Square, which doubles as a recreational space when dry and as a water catchment for up to 1.7 million litres during heavy rains.
The city also has over 400,000 square meters of green rooftops that help absorb rainwater and reduce heat island effects.
3) Making Cities Sustainable
Cities can improve sustainability by transitioning to renewable energy, electrifying heating and transport, and promoting circular waste management. This includes adopting low-carbon fuels and reducing waste through recycling and reuse, as in Amsterdam. Cities are also addressing environmental degradation, with Beijing significantly reducing air pollution by shifting to cleaner energy and stricter emissions standards.
Global initiatives, such as New York’s Local Law 97, are driving reductions in greenhouse gas emissions through retrofitting and renewable energy investments.
Energy Transition
City-level targets for reducing carbon emissions are driving significant investment in new urban energy systems. According to Oxford University’s Net Zero project, 23% (271 out of 1,186) of major cities have established net zero targets, covering a combined population of 793 million, an increase from 640 million in 2020. Electricity generation must shift towards renewable sources, requiring land for local infrastructure like solar panels, wind turbines, and battery storage.
Residential and commercial heating will increasingly be electrified, while industrial processes will adopt low-carbon fuels such as green hydrogen, all of which depend on secure and affordable energy supplies. Urban transport must be transitioned from oil-fuelled vehicles to electric, biofuel and hydrogen-based alternatives.
Case Study: New York
Through initiatives like Local Law 97 (LL97), New York City has committed to reducing greenhouse gas emissions by 80% by 2050. The city has already reduced emissions by more than a quarter compared to 2006, equivalent to removing 83,000 cars from the streets annually. New York’s strategy includes retrofitting municipal buildings, promoting renewable energy, and implementing penalties for buildings that fail to meet emission standards.
Circular Waste Management
Cities are crafting innovative circular economy strategies and developing business cases to foster fully circular production. This includes discovering opportunities to minimise energy use for water production, use waste to produce energy, use water efficiently to grow food, and use food waste to create energy.
Case Study: Amsterdam
Amsterdam's Circular Economy Strategy focuses on reducing waste and promoting sustainability by transitioning to a circular economy by 2050. The strategy targets key sectors like construction, food, and consumer goods and aims to halve the use of new raw materials by 2030. Key milestones include promoting recycling, reusing building materials, and encouraging sustainable consumption practices.
Amsterdam has implemented initiatives such as urban mining, bio-based building materials, and a zero-waste agenda, setting a strong example of circularity in urban environments.
Reversing Environmental Degradation
Developing industrial capacity within cities significantly increases emissions of harmful pollutants, such as particulate matter, waterborne chemicals, and heavy metals. Proximity to these pollutants, particularly in rapidly industrialising nations like China, India, and Vietnam, contributes to higher rates of premature deaths from outdoor air pollution.
Global standards for air and water quality are becoming more stringent. In 2023, the World Health Organization tightened global air quality guidelines for the first time in 15 years. Similarly, the US Environmental Protection Agency proposed stricter rules on particulate matter and drinking water contaminants like lead and copper.
Case Study: Beijing
Beijing has made significant progress in reducing air pollution, particularly in lowering the concentration of harmful particulate matter (PM2.5). Over the past decade, the city's PM2.5 levels have dropped by two-thirds. The city has transitioned from coal to cleaner energy sources like natural gas, closed high-polluting industries, and improved vehicle emissions standards. Other harmful pollutants, such as nitrogen dioxide (NO2) and sulphur dioxide (SO2), have also significantly reduced by 53.6% and 88.7%, respectively.
About Neos Advisory
An award-winning firm with office in the US and the UAE, Neos Advisory offers tailored solutions to address urban challenges, with international expertise in infrastructure resilience, energy efficiency, cybersecurity, and other critical areas of urban resilience.
