Urban Climate Finance
A total of USD 90 trillion is needed to bridge the investment gap to mitigate global warming to 2°C by 2030. Yet less than 10% of international climate finance is currently allocated to local investments.
To fill this market gap, national governments and public development banks need to support local governments to develop climate projects and access climate finance.
Cities are innovating to integrate ‘climate’ into their budgetary choices, issue green bonds, develop territorial investment funds to support companies implementing low-carbon innovation or operators enabling local carbon offsetting. These experiences and solutions can inspire cities worldwide.
Voice of practitioners…
Yannick Glemarec
Barbara Buchner
Paul Simondon
Yannick Glemarec
Executive Director, Green Climate Fund
The Green Climate Fund has adopted a new strategy for cities. It aims to accelerate the carbon transition by supporting integrated urban policies and innovation, particularly in regards to decentralized renewable energy, energy efficiency in buildings, urban design and the circular economy. Over the past 5 years, the Green Fund has co-financed a portfolio of urban projects worth USD 7.27 billion representing a mitigation of 1046 million t CO2 eq. + info
Barbara Buchner
Global Managing Director, Climate Policy Initiative
The CCFLA is a multi-stakeholder platform that aims to develop solutions to address the market failure of climate project finance in emerging cities: strengthening the role of public development banks, aggregating projects and financing... CPI developed an investment fund for cities that aims to facilitate the financing of medium-sized infrastructure. + info
Paul Simondon
Deputy Mayor of Paris in charge of Finances
The City of Paris is developing financial innovations to achieve its 2050 objective "Paris, a low-carbon city, 100% renewable energy": evaluation of the climate impact of the municipal budget, green bond issues, support for innovative climate-friendly companies through the establishment of a Territorial Investment Fund, the "Paris Green Fund". + info