Resilient Economies: Strategies for Sinking Cities and Flood Risks

Cities across the globe are sinking beneath our feet driven by excessive groundwater extraction and rapid urbanization. Land subsidence pressures increase the risk of floods, damage to infrastructure, and the displacement of communities. When combined with rising seas and extreme weather, subsidence is an impending and severe threat for everyone. This threat, however, remains underrecognized in climate and urban agendas.

Drawing lessons from coastal cities experience land subsidence (Tokyo, Shanghai, Rotterdam, and Jakarta), we show that proactive and integrated strategies, such as smarter resource management, resilient infrastructure, and nature-based solutions, can transform vulnerability into resilience. The key lessons are clear: cities must treat land and water as strategic assets, strengthen governance and leadership, apply systems thinking, commit to evidence-based approaches, and invest in infrastructure resilience.

Resilient Economies: Strategies for Sinking Cities and Flood Risks is written collaboratively by Deloitte and the World Economic Forum. This report brings land subsidence into the spotlight as a hidden crisis with serious consequences to support cities in safeguarding future prosperity and livability by properly addressing subsidence in the face of accelerating climate risks.