One of the most critical barriers hindering sustainable urban development is the insufficient access to finance for infrastructure projects in cities, particularly for innovative projects addressing climate change. Research from the C40 Cities Climate Leadership Group (C40) shows that only 1 in 5 C40 cities are able to borrow from the state, and only 1 in 4 are able to issue municipal bonds. To make matters worse, it is often the cities that are most vulnerable to the effects of climate change that lack access to finance for the very projects that would reduce their vulnerability. This issue is critical and urgent, as an estimated US$4 trillion per year in infrastructure investment is required in developing countries, especially in its cities, to leapfrog the fossil fuel-driven economic development of the past.
The C40 Cities Finance Facility represents a massive opportunity for cities, particularly those in the Global South. The project represents a significant step forward in delivering one of my strategic aims as C40 chair, and will allow cities to leverage significant public and private financing for green infrastructure projects, enabling cities to accelerate their ambitious emissions reductions.
New initiatives such as the C40 Cities Finance Facility (CFF) are bridging the gap between cities and finance. The CFF facilitates access to finance for climate change mitigation and resilience projects in urban areas by providing technical assistance to develop cities’ sustainability priorities into bankable investment proposals. The CFF aims to deliver project preparation and capacity development, and to widely share knowledge and establish partnerships between cities and financiers. For more information about the CFF, please consult its brochure.
The C40 Cities Finance Facility relies on a dedicated team of urban policy professionals in London and Berlin. The CFF also employs experts in the cities it supports to coordinate the provision of technical assistance. Opportunities to join us or partner with us will be regularly advertised on this website.