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The report examines the link between urban sprawl and high energy consumption, arguing that current energy policies overlook the role of urban design. It advocates for "complete communities"—dense, walkable, mixed-use neighborhoods—as a primary strategy for emissions reduction. Using the Sustainable Asset Valuation (SAVi) methodology, the report compares car-centric and sustainable transportation scenarios in Winnipeg, finding that sustainable shifts offer significantly higher net benefits and a superior benefit-to-cost ratio. It identifies key barriers such as NIMBYism, flawed municipal governance, and the financial instability caused by sprawl, while proposing solutions including zoning reform, parking policy changes, and new municipal revenue tools.

Key insights

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  • Mainstream climate and energy policies frequently ignore urban form, prioritizing technological solutions like electric vehicles over the systemic need to reduce total energy demand.
  • Urban sprawl in North America creates high emissions by trapping populations in car-dependent, low-density environments that increase travel distances and energy use for heating and cooling.
  • Electric vehicles are not a sufficient primary strategy for decarbonization due to high life-cycle emissions from mineral extraction and manufacturing, slow adoption rates, and the massive cost of grid upgrades.
  • Urban sprawl creates a financial crisis for municipalities because low-density infrastructure is expensive to maintain and generates lower tax revenue per hectare than dense areas.
  • In Winnipeg, the legacy of settler colonialism is evident in the forced displacement of Indigenous communities, such as the Métis in Rooster Town, to make way for car-centric suburban expansion.
  • The development of "complete communities"—characterized by high density, mixed-use development, and active transportation—is critical for reducing carbon emissions and improving quality of life.
  • A SAVi analysis of Winnipeg shows that sustainable transportation scenarios (low and high ambition) are far more economically viable than a car-centric scenario, with a benefit-to-cost ratio of 5.29 compared to 0.04.
  • The high-ambition sustainable transportation scenario for Winnipeg is projected to generate a cumulative discounted net benefit of CAD 1,766 million by 2050, largely driven by public transit revenues.
  • Key barriers to sustainable urban planning in Winnipeg include NIMBY opposition, a governance system where city councillors have outsized influence over project approvals, and restrictive zoning bylaws.
  • To create fiscal space for climate investments, the report recommends implementing impact fees for suburban development, parking lot levies, and commuter fees for those entering the city.

Cite the original document

APA
Rempel, Z., Bechauf, R., Kapetanakis, M., Excell, G., & Cheng, Y.-H. (2025). Cities in Transition. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-04/cities-transition-urban-planning-energy-policy.pdf
Chicago
Rempel, Zachary, Ronja Bechauf, Michail Kapetanakis, Georgia Excell, and Yung-Hsin Cheng. Cities in Transition. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-04/cities-transition-urban-planning-energy-policy.pdf.
Wikipedia
{{cite report |last1=Rempel |first1=Zachary |last2=Bechauf |first2=Ronja |last3=Kapetanakis |first3=Michail |last4=Excell |first4=Georgia |last5=Cheng |first5=Yung-Hsin |title=Cities in Transition |publisher=International Institute for Sustainable Development |date=March 2025 |url=https://www.iisd.org/system/files/2025-04/cities-transition-urban-planning-energy-policy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{rempel2025cities, author = {Rempel, Zachary and Bechauf, Ronja and Kapetanakis, Michail and Excell, Georgia and Cheng, Yung-Hsin}, title = {{Cities in Transition}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = mar, url = {https://www.iisd.org/system/files/2025-04/cities-transition-urban-planning-energy-policy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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