Page 10 - U4SSC: A guide to circular cities, June 2020

2. Concept of circular cities

2.1 Challenges facing cities

More than half the world’s population now lives in urban areas. In 2016, an estimated 54.5 per cent
of the human population lived in urban settlements, and that figure is expected to rise to 60 per cent
by 2030. These urban areas consume 75 per cent of natural resources, produce between 60 and 80
per cent of global greenhouse gas emissions, and generate 50 per cent of all waste.

The number of cities with at least 1 million inhabitants was estimated to be 512 in 2016. This number
is projected to reach 662 by 2030. In the same year, there were 31 ‘megacities’, that is, cities with
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more than 10 million inhabitants. The number of megacities is expected to reach 41 by 2030. Hence,
cities play a crucial role in driving sustainability in production and consumption of goods and services.

Cities are dense and highly congested physical spaces that are prone to a myriad of challenges such
as population growth, urban sprawl, climate change, environmental degradation and fiscal pressures.
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In 2014, more than 80 per cent of cities were located in areas vulnerable to a high risk of mortality or
economic losses associated with natural disasters or other environmental challenges. Demographic
changes such as ageing populations, volatile economic growth, unemployment, low-wage, low-skilled
jobs, income inequality, social polarisation and segregation are fuelling urban sprawl. Furthermore,
the current consumption levels in cities are starting to exceed their economic capacity and biocapacity,
ultimately affecting the well-being of all city dwellers.

Each city has its own unique characteristics and specific social and economic structure, along with the
associated challenges. In order to start injecting circularity into different city assets, it is important
for cities to assess their current status and identify the appropriate starting points with respect to
circularity. The gap between the current state and the intended circular future creates an enormous
innovative potential for cities and communities.

Stakeholders, including the public and private sector, NGOs, civil society and the city dwellers themselves,
can work collectively as partners to close this gap. Creating public-private-people partnerships (PPPP)
through the involvement of relevant stakeholders is crucial for circularity. These partnerships enable
innovative and alternative financing mechanisms for circular city initiatives. In addition, engaging and
working with stakeholders through global platforms such as the U4SSC offer a reliable way to make the
best use of cities’ collective capital and to ensure inclusivity throughout the implementation process.

2.2 Moving from a circular economy to a circular city

This document attempts to identify a list of city assets and products that would broaden the circularity
concept beyond economy to include different aspects of city management, hence the term ‘circular’
cities. For example, public spaces in the city (which are not economic products but public assets)
may be used for different social activities at different times (i.e. sharing public spaces as a city asset).
Similarly, household items may be shared among individuals and households or re-used for different

2 U4SSC: A guide to circular cities