Cities play a significant role in mitigating climate change since they are responsible for over 70% of global CO2 emissions. However, as publication Unlocking Climate Action in Megacities created by a network of the world's megacities committed to addressing climate change C40 reveals, the lack of access to financing suited to sustainable infrastructure is one of the biggest barriers that prevent cities from delivering bold projects for a low carbon future.
C40 Cities Climate Leadership Group, the leading global bank Citi and a global technology powerhouse Siemens teamed up to create a report to help cities that are looking for financial solutions to fund their projects and infrastructure for climate mitigation and adaptation. The report New Perspectives on Climate Finance for Cities was launched at the World Cities Summit 2016 in Singapore.
Mr. Martin Powell, Head of Urban Development at Siemens Global Center of Competence for Cities, said: “This joint report between C40, Citi and Siemens, provides a spring board for urgently-needed financing solutions and captures the synergistic efforts of the most innovative climate actions taken by cities around the world.”
The report identifies possible routes for supporting climate-related projects and programs, provides a detailed overview of such innovative climate financing techniques and mechanisms as green bonds, equity capital, emission trading schemes, city government-backed funds, international and regional climate funds, finance from International Financial Institutions and agencies, and explores the ways cities can utilize the growing number of green funds. The publication also includes guidance for cities that plan to set up their own funds for climate action and examples of cities (Toronto, Melbourne, Amsterdam, London, New York, Chicago, etc.) that have already done it successfully.
Mr. Seth Schultz, C40’s Director of Research, Management and Planning, said, “Following the historic Paris climate agreement, we must now take bold action to protect our planet for future generations. The only way to do this is dramatically increasing climate financing and attracting more investments. By providing an introduction for cities seeking to understand climate finance options, this report is a first step in that direction.”
“New financing models can support sustainable infrastructure development and corresponding investments in cities. The key is to understand and embrace new approaches to infrastructure and devise enabling financing solutions that will benefit each city according to its specific needs and economic situation,” added Mr. Kenneth Hsi Jung Koo, Deputy General Manager and Citi Chief Representative, Citi Orient Securities.
Read the report here.
by Natalie Myhalnytska
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