Some say the Hafencity, which will eventually be home to 12,000 residents and businesses with 40,000 jobs, is the most exciting urban development project in Europe. Located in the middle of Hamburg's busy port area, the 0.6-square-mile Hafencity integrates a mix of residential, commercial and leisure uses into one self-sustainable green model district.

Its energy demand will be met from low-carbon energy sources; its buildings, designed by the world's top architects, are highly energy efficient (some will even produce more energy than they consume); and its vast open spaces and immediate link to the old city center encourage residents to walk or bike to move around. Already, some 1,500 people are living here.

Hafencity will not only be green, it will also be fun: It's home to a futuristic music hall in the shape of a wave, lots of bars and restaurants and great access to the waterfront. Officials expect that up to 80,000 people will visit the new district each day.

But the $10 billion Hafencity is not the only green project in Hamburg, a city with 1.8 million inhabitants. Authorities here have earmarked hundreds of millions of dollars for several climate protection, renewable energy and energy efficiency projects all over the city.

"We want to make Hamburg a motor for climate protection," Anja Hajduk, Hamburg's environment minister, recently told a climate conference here.

Hamburg has already reduced its greenhouse gas emissions by an impressive 15 percent compared with 1990 levels; it aims to reach minus 40 percent by 2020, and minus 80 percent by 2050.

The city is especially sensitive to climate change: In 1962 a storm flood that submerged large parts of the city killed more than 300 people and left tens of thousands homeless. Rising North Sea levels because of climate change mean that the city could experience heavier and more frequent flooding. Hamburg Mayor Ole von Beust recently allocated some $750 million to heighten the city's extensive dike system by around 3 feet.

Yet most of the projects aren't about climate mitigation, they are about prevention.

In the blue-collar Williamsburg district, authorities are spending around $115 million to build until 2013 a vast green space as large as London's Hyde Park. And in one of the more spectacular projects, Hamburg is covering an inner-city highway with a grass-topped roof to provide green spaces and reduce noise.

Green transportation is key here: Hamburg is already extending its subway lines and will build a new electric tram system spanning 25 miles. But you can tour the city even greener: Take one of the 1,000 public bikes available for rent at 68 stations across the city. Hamburg pays Deutsche Bahn nearly $2 million per year to run the bike rental system called Stadtrad ("Citybike"). The best thing to it: If you rent a bike, it's free for the first 30 minutes. Over the past four months, 33,000 people have registered, and 223,000 trips were made.

"We hope Stadtrad to be a door opener for increasing the acceptance of cycling as a normal means of transportation," said Olaf Boehm, who helps manage the project for the city. Officials here have also allocated some $15 million to modernize Hamburg's bike lanes.

On top of all that, the city has earmarked around $37 million per year for new green projects and ideas.

Because of its many ambitious climate protection targets, the European Commission in February awarded Hamburg the title "European Green Capital 2011."

"Over the next years, the environment will be Hamburg's main focus," said Klaus de Buhr, who heads Hamburg's Green Capital campaign.

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