Tashkent, Uzbekistan (UzDaily.com) —  The 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), held from 11 to 22 November 2024, has concluded in Baku, Azerbaijan.

As part of the business program at the Russian Pavilion, Eastern Europe’s largest bank, Sberbank, discussed with representatives from Türkiye, India, Brazil, and other countries the development of smart cities, the future of green technologies, and potential avenues for international collaboration in sustainable development.

Smart Cities in the Era of the Climate Crisis: Challenges and Prospects

At Sber’s session, hosted in the Russian Pavilion and dedicated to smart city development, business representatives explored how green technologies and advanced digital solutions can help address urban environmental issues and adapt cities to changing climate conditions. Participants shared their national experiences and perspectives on creating cities that are not only more resilient, energy-efficient, and climate-adaptive but also more comfortable for residents.

Currently, about 56% of the global population—equivalent to 4.4 billion people—live in cities. By 2050, this number is expected to double, with 7 out of 10 people on Earth residing in urban areas. "We are at a historic juncture where urban population density is increasing sharply," noted Tatiana Lipskaya, Sberbank’s Senior Vice President for ESG. "Today, major cities present not only opportunities but also immense environmental challenges."

Cities generate 80% of the global GDP but are responsible for 70% of greenhouse gas emissions. Lipskaya emphasized that the large populations and extensive infrastructure in urban areas exacerbate their vulnerability to climate change and natural disasters. "An increase in population and infrastructure without systemic solutions could worsen existing problems. The development of megacities requires comprehensive strategies and new green technological solutions," she added.

Many countries are now working on projects to create smart cities. These initiatives include increasing the share of renewable energy in urban power supplies, implementing water resource management systems, digitizing transportation infrastructure, and constructing energy-efficient buildings. Lipskaya highlighted the "SberCity" project in Russia, a new residential and business district in western Moscow that is being developed to international green design standards, creating an innovative urban environment.

Andrey Likhachev, CEO of Rublyovo-Arkhangelskoye JSC (the SberCity project), expressed confidence that urban development would continue to move towards greater sustainability, the use of renewable energy sources, and reduced environmental pollution. According to him, SberCity already incorporates energy modeling technologies, a vacuum waste disposal system, a network of distributed energy centers, and integrated "smart home" solutions.

International experts also shared their experiences during the session. Mehmet Erdem Samut, Smart City Technology Coordinator for the Istanbul Municipality, explained that over the past five years, Istanbul has actively invested in Big Data platforms that collect and analyze data from all city services. This technology helps better understand residents’ needs, improve quality of life, and respond more quickly to emergencies. It is also used for environmental protection, such as optimizing traffic flow and reducing harmful emissions through the integration of public transport systems.

In São Paulo, Brazil, the focus when implementing smart technologies has been on supporting startups that address social issues. Musa Miranda, Director of ADE SAMPA, emphasized that smart cities are not just about technology but also about improving people’s lives. Over 100 startups are working on projects to support underprivileged areas like favelas, creating infrastructure and providing access to resources.

Dr. Vibha Dhawan, Director General of The Energy and Resources Institute in India, highlighted the importance of developing green building materials and transportation infrastructure. She stressed that technologies should not only create convenient environments but also reduce CO2 emissions and optimize resource use. Additionally, she noted the importance of fostering international technological dialogue and sharing green innovations across countries.

In conclusion, experts agreed that the success of smart cities depends on balancing technological infrastructure with residents’ comfort. Progress should be measured not only by economic indicators but also by how innovations improve people’s lives and address global challenges.

Technologies for Survival: Is a Future Without Climate Shocks Possible?

Continuing the discussion on green technologies, another Sber session focused on the role of green digital solutions, innovations, and fintech in preventing climate disasters and adapting to changing conditions. A central topic of debate was the pressing need for collaborative development and implementation of technological solutions to effectively manage climate risks. These risks already claim approximately 490,000 lives annually and, by 2050, could result in the deaths of 14.5 million people. According to international studies, climate change causes economic losses of up to $1.7 trillion each year. However, timely adaptation can significantly reduce these impacts.

For instance, the most expensive adaptation measures cost 30 times less than disaster recovery. United Nations studies suggest that investments totaling $1.8 trillion by 2030 could yield more than $7 trillion in net benefits. As such, green technologies are becoming a cornerstone in reducing carbon emissions and mitigating the effects of climate change.

During the session, Russian and international experts shared their green technological solutions. Alexander Kraevoy, Head of the Production Engineering and Sustainable Development Department at RusHydro, highlighted the company’s hybrid energy complexes, which combine wind and hydrogen energy. These systems not only reduce CO2 emissions by 80 million tons annually but also ensure stable energy supplies to regions. Dmitry Izotov, Head of the Palladium Technologies Center at Norilsk Nickel, noted that the company’s innovative palladium-based components could significantly enhance the efficiency of solar panels and eco-friendly fuels.

The global green technology market is demonstrating steady annual growth of 30% and is projected to reach $10–13 trillion by 2030. However, as technologies advance, it is crucial to prioritize international cooperation and the sharing of proven solutions. Session participants emphasized that transitioning to a sustainable economy is only possible through the combined efforts of businesses, governments, and society. According to Tatiana Lipskaya, an online BRICS platform for exchanging best practices and expertise in sustainable development could serve as an ideal forum for such dialogue.

Neural Networks for Climate Risk Assessment

The importance of global green technology development was also highlighted at a side event organized by the Russian delegation. This event focused on global food security within the context of climate action and sustainable development. In her address, Tatiana Lipskaya emphasized the critical role of integrating climate risk assessment into regional adaptation plans for climate change. Such solutions, powered by artificial intelligence, are already being implemented at Sberbank.

Since 2019, Russia’s Ministry of Economic Development has been building a system for adaptation planning. During the first phase (2019–2022), methodological guidelines were developed for assessing climate risks, prioritizing measures, and drafting adaptation plans. Ten sectoral adaptation plans and 75 regional plans were adopted during this period. The second phase, which is set to conclude in 2025, aims to refine climate risk assessments, identify vulnerable assets, evaluate the effectiveness of current measures, and estimate potential economic losses. Updated regional adaptation plans are expected in the first quarter of 2025.

Climate change significantly impacts the agricultural sector, one of the most vulnerable to extreme weather events. According to Sberbank, Russia experiences up to 1,000 hazardous climate phenomena annually, half of which directly affect agriculture. Similar challenges exist worldwide, where droughts and floods lead to reduced crop yields and soaring food prices.

Sber is actively developing climate risk management technologies using AI tools. In collaboration with Skoltech, the bank has created models to predict climate phenomena such as droughts, floods, and wildfires, as well as to calculate their economic impacts.

"As the largest bank, we handle vast amounts of data daily to assess risks. Today, climate change and the increasing frequency of natural disasters pose one of the greatest threats, driving economic damages higher. At Sber, we have integrated climate risk assessments into our business model, applying them not only to our own operations but also to our clients. This enables us to better forecast and manage the potential consequences of natural catastrophes," said Tatiana Lipskaya.

In 2025, Sber plans to launch a Green Technologies Laboratory. According to Lipskaya, particular attention will be given to AI-driven developments for addressing climate and environmental challenges. This initiative will mark a crucial step in aligning the efforts of government, businesses, and international partners to adapt to climate challenges and enhance global food security.