UN ESCAP, ADB, UNDP: Inclusive Urban Futures — From Inequality to Opportunity2026
SDG 11: Sustainable Cities and Communities | SDG 8: Decent Work and Economic Growth | SDG 10: Reduced Inequalities | SDG 13: Climate Action
Ministry of Housing and Urban Affairs (MoHUA) | Ministry of Labour and Employment | National Disaster Management Authority (NDMA) | NITI Aayog
The 2026 Asia-Pacific SDG Partnership Report, Inclusive Urban Futures — From Inequality to Opportunity2026 reveals a region at a critical crossroads, where rapid urbanization supports 2.2 billion people but leaves 697 million—62% of the global total—trapped in informal settlements. With an additional 1.2 billion people projected to migrate to cities by 2050, the report identifies a widening “access gap” where the furthest behind households are twice as likely to live in slums and 17% of urban residents remain entirely offline. The crisis is multifaceted, spanning informal employment (affecting 65% of the workforce), acute environmental liveability risks, and a persistent digital divide. To prevent systemic urban decay, the report mandates a transition toward Integrated Urban Governance, utilizing community-led upgrading, nature-based resilience, and innovative “blended finance” models to convert urban inequality into sustainable opportunity.
Key Pillars for Inclusive Urban Development
Housing & Multi-Hazard Basic Services: Prioritizing the 697 million slum dwellers by linking housing development with “safely managed” water, sanitation, and pro-poor tariffs.
Formalization of Decent Work: Implementing structural reforms to transition the 65% informal workforce into formal roles through demand-driven skills development and legal protections for domestic and gig workers.
Environmental Liveability & Nature-Based Solutions: Addressing the health risks for 4 billion people exposed to air pollution by integrating clean air zones and Nature-Based Solutions (like wetland management) into urban planning.
Digital & Financial Bridge: Closing the 17% internet access gap and ensuring that bank account ownership—which falls below 40% for marginalized groups—is universal through digital literacy and inclusive fintech.
Inclusive Mobility & Transport: Standardizing public transport systems to be safe and accessible for women, children, and persons with disabilities, utilizing models like the Transjakarta integration.
Fiscal Autonomy & Blended Finance: Empowering Urban Local Bodies (ULBs) with the authority to modernize revenue administration and utilize Green Bonds to attract private capital for sustainable transitions.
Climate Resilience & Early Warning: Strengthening urban resilience through inclusive, AI-powered early warning systems and community-led disaster risk financing.
Spotlight: India’s Strategic Urban Interventions
The report highlights India as a primary site of urban transformation, showcasing specific policy instruments used to mitigate the challenges of rapid urbanization:
Holistic Housing (PMAY-U): The Pradhan Mantri Awas Yojana–Urban is cited as a benchmark for “holistic planning,” providing affordable housing coupled with essential services to economically weaker sections and slum dwellers.
Digital Social Security (e-Shram): India’s e-Shram platform is identified as a vital digital bridge, successfully connecting over 300 million informal workers to comprehensive social security schemes.
Transport Scaling: India has achieved a significant infrastructure milestone by increasing its operational metro network fourfold—from 2014 to mid-2025—now spanning 1,013 kilometers across 23 cities.
Participatory Governance: The MyCityMyBudget initiative serves as a model for “public participation,” allowing residents to directly influence municipal spending priorities.
Regulatory Innovation: The strategic use of the Floor Space Index (FSI) and Transfer of Development Rights (TDR) is highlighted as an effective method for aligning private sector investments with inclusive urban goals.
What is “Environmental Liveability”? Environmental liveability refers to the physical and social quality of a city as it impacts human health, safety, and productivity. In Asia-Pacific cities, liveability is currently compromised by extreme air pollution, groundwater depletion, and inadequate waste management. Crucially, liveability is socially stratified; marginalized groups in informal settlements are disproportionately exposed to climate-related disasters and industrial hazards while lacking access to clean cooking fuels or formal waste recovery systems. Enhancing liveability requires a “holistic planning” approach that treats environmental health as a fundamental right rather than a luxury.
Policy Relevance
For India, this report serves as a roadmap to transform “Urban Sprawl” into “Smart Inclusive Growth,” ensuring that its 400 million future urban residents are integrated into the formal economy.
Standardizing “Dignified Informality”: The PM SVANidhi program for street vendors is cited as a standard maker move, demonstrating how micro-credit can provide legal recognition to the informal sector.
Bypassing Urban Displacement: By adopting National Urban Policies (NUPs) that focus on in-situ slum upgrading, India can bypass the economic disruption and “Path Dependency” of forced rural-to-urban migration.
Operationalizing Hyperlocal Resilience: The partnership between the BMC and IIT Bombay for flood forecasting ensures “Implementation Fidelity” in disaster management at the ward level.
Federal Fiscal Modernization: Modernizing ULB revenue administration is essential for India to fund the SDG-aligned infrastructure needed to maintain its 8% GDP growth trajectory.
Cross-Border Knowledge Transfer: Adopting Jakarta-style AI-powered flood management and Singapore-style smart-city MOUs can accelerate India’s “Harit Sagar” goals for green, efficient port cities.
Follow the full report here: 2026 Asia-Pacific SDG Partnership Report: Inclusive Urban Futures