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Urban cooling initiatives surge as cities combat extreme heat to protect economic activity

Executive summary: Cities are implementing a range of cooling strategies — including water bodies, tree planting, and heat‑reflective building materials — to counter rising extreme heat and urban heat islands. Extreme heat threatens labor productivity, energy consumption, and public health, prompting municipalities to invest in adaptation that can safeguard economic output and create new business opportunities.

Who is involved: Municipal governments, urban planners, construction firms, water utilities, and technology providers specializing in green infrastructure.

Likely next: More cities will announce funded pilot projects, building codes will evolve to mandate heat‑resilient materials, and private sector demand for cooling‑focused services will rise.

The Handelsblatt report details how municipalities worldwide are deploying water features, expanded greenery, and innovative building designs to mitigate urban heat islands. These measures aim to reduce heat-related health risks and economic losses from lowered labor productivity and energy demand. The piece frames extreme heat adaptation as a growing market for climate‑resilient infrastructure and services.

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