To say it gets cold in Pavlodar, Kazakhstan, is putting it mildly. This northeastern city has a harsh continental climate, with winter temperatures known to sink to 47 degrees below zero. That is 29 degrees colder than a typical household freezer.
In the face of subzero temperatures, the only recourse for Pavlodar’s citizens is their thermostat at home or in the office. But in this city of over 300,000 residents, turning on the heat is easier said than done.
Pavlodar’s heating infrastructure is a relic from the 1960s. Aging pipelines below ground are operating up to 25 years beyond their service life, making them frail and prone to leakages that are costly drivers of greenhouse gas emissions. The network has suffered energy losses of up to 30%, translating into economic damages of around $1 million.
This state of affairs has tangible consequences for residents. “It generates more embers, which affect the environment however you look at it. This of course impacts people’s quality of life,” said Oleg Vladimirovich Perfilov, CEO of heating firm Pavlodarenergo.
When leaking occurs, utility companies like Pavlodarenergo have little choice but to cut heating, leaving families exposed to icy temperatures. “The risk is that if water remains in the residential heating system and it cools below the freezing point, the heating system will freeze and it will be impossible to start up again,” said Perfilov.
Now times are changing. Together with the Climate Investment Funds, the European Bank for Reconstruction and Development (EBRD), and other partners, Pavlodar is implementing significant upgrades to its privately operated district heating networks. The project is part of a $140 million investment program expected to help Kazakh municipalities save on costs, improve service, reduce heat losses, and substantially lower greenhouse gas emissions.
The ongoing enhancements across the country—which in Pavlodar include replacing around 20 kilometers of pipelines, rebuilding pump stations, and improving insulation—aim to save 400,000 tons of carbon dioxide emissions and 1,200 gigawatt-hours of electricity per year.
The initiative has also helped reduce service interruptions, a positive development for Pavlodarenergo and—most importantly—its customers. Consumer complaints are down 30%, and community tensions have eased. “People feel more comfortable in their homes and can better enjoy themselves after they come home from work or [while] relax[ing] at their friends’ and acquaintances’ places,” said the CEO.
As a result, Perfilov is enjoying his work more than before. “When customers thank you for your work instead of complaining,” he said, “that's probably the highest objective we strive for. That's the biggest thrill, when people thank you for the job you do. That's what motivates me to do it.”
Pavlodar is among many other cities worldwide heeding the call of climate action. And for good reason: while cities are vulnerable to the effects of a warming planet, they have an outsize role in building a climate-smarter future.
Today, from Bogotá to Zagreb, over half of all people live in urban centers. By mid-century their numbers are set to rise dramatically, reaching a point where nearly seven out of ten people will call cities home. Put in perspective, that is more city dwellers than at any point in human history.
More urbanization means denser concentrations of people and assets, which bring upsides as well as tradeoffs. On one hand, it bodes well for economic growth. Cities are economic powerhouses and centers for job creation and innovation, accounting for more than 80% of global GDP.
On the other hand, a swelling population compounds challenges already facing mayors and other city officials as they work to build inclusive, safe, resilient, and sustainable environments for urban dwellers.
Nowhere is this more pronounced than in developing countries, where 90% of global urban growth is taking place. Urban expansion in these areas is often unplanned and unstructured, bearing economic, social, and environmental costs. The resulting congestion, pollution, crime, and poverty are drains on growth and quality of life.
Climate change amplifies these challenges. As cities grow, so does their exposure to climate impacts, including natural disasters and resource scarcity. This jeopardizes vital infrastructure like bridges and roads, as well as basic services such as safe drinking water, sanitation, and education. Coastal areas—where almost half a billion urban residents live—are particularly vulnerable. In the 136 biggest coastal cities, there are 100 million people and $4.7 trillion in assets exposed to coastal floods.
The good news is cities are well positioned to take swift, sweeping action on climate change. In the same way that mayors can fix potholes at a moment’s notice, cities can implement rapid measures to bridge the global emissions gap and strengthen resilience to climate impacts.
The potential is there. For example, electric public transportation alone could halt 250 million tons of carbon emissions by 2030, not to mention improve health, well-being, noise, and air pollution.
The Climate Investment Funds (CIF) recognizes the promising role of cities in the fight against the climate crisis—and that’s why we have their back. In developing countries worldwide, where publicly funded urban enhancements are limited, CIF is investing around $750 million to help cities build sustainable and energy-efficient urban infrastructure, develop renewable energy systems, and better withstand worsening climate impacts. In the process, CIF is helping create incentives for other partners, including the private sector, to co-finance these efforts to the tune of around $2.4 billion.
There are countries where a ceremonial “Key to the City” is the highest honor municipal leaders bestow on esteemed visitors, residents, and others. However, when it comes to climate change, cities themselves hold the key—to a cleaner, more sustainable future.