Cities at the crossroads: Powering urban energy futures amid Global Crises

*This blog was written by Rohit Sen and Kanak Gokarn from the Sustainable Energy Team, ICLEI World Secretariat, and it was originally published on Urbanet .

Every day, people around the world start their mornings by switching on a light, cooking some food, or heading out in trains and cars. We use some form of energy to heat our homes, travel to see our loved ones, and even go for a walk. Energy and human activity have always been intricately linked, but reliance on fossil fuels has exacted a steep cost. A sizeable share of these activities takes place in urban areas. This makes them integral to the global conversation on energy systems and consumption.

Powering cities means empowering futures

As nations increasingly turn inward, losing sight of common global challenges, progress towards mitigating our present energy systems’ local and international environmental impacts is threatened. In this context, local and regional climate action becomes even more important to maintain our collective momentum toward creating a safer and healthier world with sustainable energy at its core.

At ICLEI, we envision a sustainable energy system as one that meets present needs without compromising the ability of future generations to meet theirs. This requires the reliance on energy sources that replenish faster than they are consumed, namely renewables. Given the focus of our work, we are conscious that any solutions need to be context-specific, nature-conscious, and socially sensitive.

The urban energy imperative

Cities are major energy consumers. They are also hotbeds of innovation and implementation, making them ideal hubs for ambitious climate and energy action. For example, energy use in the building and transport sectors accounts for about a third of global emissions. The ability of subnational governments to influence these sectors is quite high. Aligning urban planning with climate objectives, deploying renewable energy in urban spaces, and encouraging energy efficiency in buildings and transport are all areas where cities can act in the short term, producing long-term payoffs.

Of course, cities need to be empowered to act on this potential. Fragmented governance can feel like a maze, yet cities hold the map to navigate it. Breaking barriers to action requires a clear vision, integrated planning, and governance and policy mechanisms that align local ambitions with national and global objectives. For a city to undertake such a journey, it must begin with an ambitious target and plan. For example, participants in the 100% Renewables Cities and Regions Roadmap (100% RE) project started with a bold vision, culminating in roadmaps guiding them towards 100% renewable energy across all sectors in their territories.

We often hear that the subnational level lacks the capacity to implement. While this is true in some cases, there is an equal willingness to learn. Capacity building is essential to enabling locally developed and locally led solutions. Partnerships with academic and research institutions can lead to tailored solutions. Cities can also learn from one another. Given the proliferation of digital tools such as smart grids and remote energy monitoring – controlling and optimising building assets and their energy consumption from a central location –, efforts to improve data governance and capabilities must be prioritised to enable forward-looking planning.

Finally, implementation remains the biggest challenge. Understanding the fundamentals of project development and the requirements of various financing channels is critical. Financing green energy projects is often a major hurdle, particularly in emerging economies. Moreover, public finance alone cannot meet investment needs, so it is equally important to engage the private sector. Innovative mechanisms can bridge this funding gap but require robust institutional capacities.

Integration, collaboration, and community

Energy, perhaps more so than others, is interconnected with several sectors such as water, buildings, transport, and waste, among other municipal services. The kind of systemic transformation that is needed cannot be achieved by working in siloes. Any plans that aim to target energy systems must be developed in a cross-sectoral manner.

Localised governance bridges global climate goals with actionable local impact. We see examples in our work of national governments creating frameworks that enable decentralisation. This process improves the flow of talent and resources to the subnational level, which allows for more context-appropriate and sustainable interventions.

Finally, the social dimension of our energy systems must be prioritised. No transition will be successful if it creates unsustainable burdens on a population, which is why policies and solutions must be deployed carefully in coordination with local communities. Equity in energy systems means addressing structural barriers. Women and marginalised groups must lead as champions of change, not remain on the sidelines. Innovative mechanisms of gathering such input are always being tested out, including serious games.

Regional spotlight: Southeast Asia

Global conversations take on different forms when we move to the subnational level. For example, countries such as Indonesia, Malaysia, and Thailand are heavily dependent on fossil fuels. Still, in Indonesia, through work under the 100% RE and RENEW-Southeast Asia projects, we have seen how national legislation can enable subnational action. Provinces like West Nusa Tenggara are mandated to develop regional energy plans, stimulating subnational energy and climate action. However, electricity markets are often heavily regulated, leading to affordable prices for consumers but also skewing price signals for longer-term investments (including to enable the uptake of higher levels of renewables). This context is very different from that of European countries. Technologies and solutions, therefore, cannot be deployed in the same manner in these regions and require supportive policy and regulatory work to go hand-in-hand.

Looking ahead

Our work has shown how local and regional governments provide a key interface between their communities and national and international climate goals. Yet, most of them still need significant support. The tools, knowledge, and networks we have developed will continue to serve cities and regions, but our work to accompany them in navigating the complexities of the sustainable energy transition is far from over.

To all urban leaders, practitioners, and stakeholders, the message is clear: As geopolitical winds shift, cities must anchor climate action, leading with vision and inclusive strategies. The moment for bold, collective leadership is now.