Over 280 cities globally have adopted net-zero targets, and cities account for over 70% of global CO2 emissions. Achieving carbon neutrality requires simultaneous transformation of building heating systems, transport networks, construction practices, and waste management — each on its own a multi-billion-dollar infrastructure challenge.
The "last mile" problem is universal: even with aggressive reductions, 5–15% of urban emissions remain from hard-to-abate sectors like waste incineration and industrial processes. These residual emissions must be offset through negative emission technologies — carbon capture, direct air capture, or mineralization — that are expensive, unproven at scale, and carry the risk of becoming an excuse to delay real reductions.
Copenhagen's experience is a cautionary tale: the city abandoned its 2025 carbon neutrality target after its entire strategy collapsed when CCS at the Amager Bakke waste-to-energy plant proved infeasible. The lesson is clear — cities must diversify their approaches rather than betting on a single technology.
Beyond direct emissions, consumption-based (Scope 3) accounting reveals that wealthy cities import far more carbon in goods and services than they produce locally. A small, service-oriented city may look clean on paper while its residents' consumption generates massive emissions elsewhere.
The economic dimension is equally challenging: total investment requirements typically run into the billions, SMEs lack resources to navigate the transition, and skilled workers for heat pump installation, building retrofits, and EV infrastructure are in critically short supply. Without programs that carry small businesses and vulnerable populations along, the political coalition for climate action can fracture.