96Private-sector applications (project-specific planning and investment): Developers, investors and businesses align projects (ranging from single buildings to large- scale urban developments) with sustainability goals while managing risks and optimizing financial returns. Key interventions include: ▪Conducting market and demand assessments to ensure infrastructure and resource use align with needs, avoiding inefficiencies ▪Exploring low-carbon, sufficiency-driven designs that reduce material consumption and extend asset longevity ▪Embedding adaptive, circular business models that prioritize re-use, shared spaces and regenerative development to future-proof investments Recognizing regional variations in Phase Zero definitions It is important to acknowledge that the definition and application of Phase Zero varies across planning prac- tices and geographies, with some regions already incorporating structured frameworks. For example, in Germany, the Federal Ministry for Housing, Urban Devel- opment and Building (BMWSB) defines Phase Zero as a strategic conception phase that precedes formal plan- ning. This approach emphasizes needs assessments, stakeholder participation and feasibility analysis to opti- mize sustainability and avoid errors. Germany also integrates Phase Zero into certifica - tion systems such as the German Assessment System for Sustainable Building (BNB), and the German Sustain- able Building Council (DGNB) sustainability certificate, ensuring regulatory alignment and facilitating funding access. These examples highlight how Phase Zero can be adapted to different governance structures and sus- tainability goals.A holistic systems approach, beginning with the earliest stages of urban development The Alliance asserts that Phase Zero should operate as an iterative, non-linear process that establishes the conditions for sustainable and equitable urban development. It is a critical point where decision-mak - ers can embed circular economy principles and align planning with long-term societal and climate goals. Core components of Phase Zero (across public and pri- vate sectors): ▪Identifying needs and objectives: Define demand requirements (e.g. energy use, infrastructure needs, market trends) to ensure equitable access to essen- tial services. ▪Assessing constraints: Recognize limitations related to cost, policy, technology and stakeholder priorities to set realistic parameters for decision-making. ▪Gathering and analysing data: Use historical trends, life cycle analysis, cultural mapping and stakeholder insights to guide sustainable and demand-driven strategies. ▪Exploring scenarios: Evaluate various growth, reduc- tion and resource-sharing pathways, identifying implications for long-term resilience and efficiency. ▪Stakeholder engagement and co-creation: Involve policy-makers, businesses and local communities – especially vulnerable populations – to co-design solutions that reflect cultural identity and needs.Strategies for embedding circularity and sustainability within Phase Zero (non-exhaustive): ▪Circular resource planning: Map material, energy and water flows to enhance resource efficiency, reduce waste and promote regenerative systems. ▪Sufficiency and low-impact development: Reduce land consumption by prioritizing need-based devel- opment, shared spaces and longevity-driven design. ▪Stakeholder co-creation through inclusive and par - ticipatory planning: Strengthen community resilience by engaging local actors early to shape solutions that preserve culture, reduce inequality and enhance place-based identity. ▪Resilient and climate-aligned strategies: Set goals for social inclusion, carbon neutrality, biodiversity enhancement and climate adaptation using nature- based and circular approaches. Integrate local and traditional knowledge and culture-based practices. ▪Adaptive land use and zoning: Design for flexibility in land use (e.g. mixed-use spaces, re-use models) to support evolving priorities like housing, jobs and public health. 97 Unsplash

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