Sustainability is no longer a niche policy issue. It is now a foundation for resilient economic growth, social wellbeing, and geopolitical stability. Countries that embed environmental goals into their national development strategies create jobs, attract investment, reduce public health costs, and lower exposure to energy market volatility. At the same time, cities and local governments are where many sustainability solutions are delivered in practice, from low-carbon transport and building retrofit programmes to urban nature and circular-economy initiatives.

XPS Sustainability research has consistently highlighted why sustainability matters not only for climate outcomes, but for long-term economic development and socio-economic resilience.

Why Sustainability Should Be a Strategic Pillar

Framing sustainability as an economic strategy requires a shift in mindset, from seeing climate and environmental policy as a constraint, to recognising it as an enabler of growth and resilience.

Renewable energy and energy efficiency reduce import dependence and exposure to fossil-fuel price volatility. Green construction and retrofit programmes create local jobs and stimulate supply chains. Urban climate resilience lowers disaster recovery costs and protects vulnerable communities. Circular-economy approaches extract more value from fewer raw materials, strengthening resource security and productivity.

When these policies are integrated across industrial strategy, infrastructure planning, and social policy, they support more equitable transitions and increase political durability over the long term.

How National and Local Governments Are Developing Sustainability Policies

Saudi Arabia: Managing an Oil-Based Economy Towards Greener Growth

Saudi Arabia has made high-profile national commitments to expand green investment and curb emissions growth through initiatives such as the Saudi Green Initiative (SGI) and its integration into Vision 2030. A core SGI target is to reduce carbon emissions by approximately 278 million tonnes per year by 2030. The transition is framed as part of broader economic diversification, supported by investment in renewables, nature restoration, and large-scale projects such as green hydrogen, afforestation, and low-carbon developments linked to NEOM.

Policy implementation highlights:

• SGI is a national programme linked to Vision 2030, combining afforestation, marine protection (including mangroves), protected-area expansion, and emissions reduction targets.

• Commitments include planting 10 billion trees, restoring 74 million hectares, and cutting annual carbon emissions by around 278 million tonnes by 2030.

• Strong political backing has unlocked funding, cross-ministry coordination, and large public procurement programmes, enabling landscape-scale projects and linking biodiversity, tourism, and economic diversification.

For resource-rich economies, sustainability can be embedded into diversification strategies by pairing decarbonisation targets with new green industries, renewable energy investment, and land-use projects that also create employment and tourism opportunities.

China: Rapid Renewable Deployment Alongside Managed Fossil Transitions

China has pledged to peak CO₂ emissions before 2030 and reach carbon neutrality before 2060. Achieving these targets requires rapid growth in renewables, improvements in energy efficiency, and increased power-system flexibility. Recent reporting indicates that thermal (coal-based) power generation declined in 2025, while renewable capacity continued to expand, a sign that scaling clean energy is already reshaping electricity supply, even as coal remains part of a complex transition.

Policy implementation highlights:

• The National Carbon Emission Trading System (ETS), launched in July 2021, places a market price on CO₂ emissions for large emitters, initially covering the power sector.

• The scheme now includes thousands of entities and represents a significant share of national emissions, creating incentives for efficiency improvements, fuel switching, and renewable investment.

• Central government climate commitments and regional pilot schemes informed the national regulatory framework, translating long-term targets into enforceable market mechanisms.

Large manufacturing economies often operate dual pathways, accelerating renewable deployment while managing legacy fossil infrastructure. Grid flexibility, storage investment, and regional planning remain critical enablers.

India: Rapid Renewable Growth with Energy Access and Reliability Trade-Offs

India’s climate strategy combines ambitious renewable expansion with a strong emphasis on energy access, affordability, and industrial development. Recent assessments show that non-fossil sources now account for more than 50% of installed capacity, with renewable investment accelerating sharply in 2024. At the same time, near-term reliability requirements mean some regions continue to plan additional dispatchable capacity.

Policy implementation highlights:

• The Jawaharlal Nehru National Solar Mission initially set modest targets that were later expanded to 100 GW of solar capacity. India surpassed this milestone in early 2025.

• Delivery has been enabled through competitive auctions, rooftop solar incentives, grid integration measures, and complementary schemes supporting farmers and electric vehicles.

• Targeted finance, concessional lending, and state collaboration have reduced project costs and mobilised private investment at scale.

For emerging economies, sustainability strategies must integrate low-carbon capacity growth with grid reliability and social objectives. International finance and technology transfer can accelerate storage deployment and system flexibility.

European Union: Binding Targets Under the European Green Deal

The European Green Deal establishes a legally binding pathway to climate neutrality by 2050, supported by the “Fit for 55” package, which targets at least a 55% reduction in greenhouse gas emissions by 2030 compared with 1990 levels. Renewables now account for roughly a quarter of EU energy consumption, with binding targets driving further investment in grids, industrial decarbonisation, and circular-economy policy.

Policy implementation highlights:

• A comprehensive legislative framework combines climate law, ETS reform, tighter efficiency standards, renewable targets, and funding mechanisms such as the Just Transition Fund.

• Harmonised regulations provide predictability for investors and member states, translating ambition into sector-specific obligations across energy, transport, buildings, and industry.

• Regional coordination strengthens long-term investment confidence and accelerates deployment at scale.

Local and City Governments: Turning Strategy into Delivery

National frameworks set direction, but cities are where sustainability policies are implemented and experienced by citizens.

London has committed to achieving net-zero carbon by 2030 through a combination of building retrofits, low-emission transport, district heating expansion, and local energy initiatives.

Bristol’s “Mission Net Zero” programme aligns public and private stakeholders to deliver carbon neutrality and resilience by 2030, with a strong focus on community energy, retrofit pilots, and inclusive delivery models.

Greater Manchester integrates nature restoration, affordable renewables, building efficiency, and social equity through a coordinated five-year regional environment plan, enabling pooled investment and consistent standards across councils.

Successful cities combine technical delivery with strong governance, targeted finance for vulnerable groups, and partnerships with utilities and businesses.

Conclusion

Positioning sustainability as a central pillar of national and local development delivers multiple co-benefits, economic resilience, improved public health, industrial innovation, and stronger, more liveable cities.

Saudi Arabia demonstrates how resource-rich economies can align diversification with green investment. China illustrates how renewables can scale rapidly alongside managed fossil transitions. India highlights the importance of balancing clean energy growth with access and reliability. The European Union shows the power of binding targets to mobilise long-term investment, while UK cities demonstrate how local delivery converts strategy into tangible outcomes.

The common lesson is clear, align strong national signals, stable financing frameworks, and empowered local delivery to make sustainability an engine of development, not an afterthought.