Initial situation
Tackling climate change is one of the most urgent challenges of our time. Many cities are already affected by climate risks. At the same time they continue to grow: By 2050, around 70 per cent of the world’s population will live in cities.
An estimated USD 4 trillion per year in infrastructure investment is required in developing countries to introduce sustainable business models and meet international climate targets. But many cities lack the necessary funds and are therefore searching for alternative funding options.
Institutional investors such as sovereign wealth funds could finance these infrastructure measures. However, they are currently having difficulties finding financially viable projects to invest in. This creates a large funding gap.
Goal
Cities in emerging economies and developing countries are able to mobilise funding for climate-friendly and finance-ready infrastructure projects.
Approach
The C40 Cities Finance Facility (CFF) supports cities in preparing finance-ready projects for climate protection and sustainable development and in developing suitable financing solutions. The CFF has so far contributed to 20 projects in 18 cities worldwide, including:
Bogotá – the city is building a first-of-its-kind 25 km bicycle corridor connecting citizens from low, middle and high-income neighbourhoods. This will make it easier for many people to reach work, education and recreation opportunities.
Jakarta – with a pilot project to electrify the city’s bus fleet. The first 30 electric buses are already in operation. The fleet will expand to 74 electric buses by October 2022.
Curitiba – the city has successfully agreed financing for five decentralised photovoltaic projects on bus stations and a landfill site.
eThekwini (Durban) – a community-based river restoration programme was successfully transferred to the city in 2022. The programme cleans the waterways surrounding Durban, significantly reducing the city’s vulnerability to climate related flooding.
From 2022, the CFF will select up to 18 additional projects to support in partner cities.
Last revised: August 2022