C40 Cities unlock US$1 billion in green financing
C40 Cities, Germany and the Inter-American Development Bank (IADB) have launched a new facility that aims to finance up to US$1 billion worth of sustainable infrastructure in cities across low and middle-income countries by 2020. The C40 Cities Finance Facility was announced at the climate summit for local leaders held in Paris City Hall, alongside the COP21 climate negotiations. The facility, with €3.5 million funding from the German Federal Ministry for Economic Cooperation and Development (BMZ) and US$2 million from the IADB, will provide technical assistance to cities within the C40 network to help them prepare sustainable infrastructure projects for investment. “Financing urban infrastructure at the city level is one of the most important challenges to achieve long-term sustainability today,” Ellis Juan, General Coordinator, Emerging and Sustainable Cities Initiative at the IADB, told Development Finance. “Financing ‘green’ urban infrastructure in its initial phase is even more challenging. The facility will have a catalytic role mobilising needed private capital for green urban infrastructure.” The initial US$5.7 million is expected to ultimately reach as much as US$20 million in technical assistance for cities, unlocking up to US$1 billion worth of green projects worldwide within four years. Eduardo Paes, Mayor of Rio de Janeiro and C40 Chair said: “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.” C40 also announced new funding from the Children’s Investment Fund Foundation (CIFF), which will provide US$5.3 million to help a minimum of 30 C40 cities in the Global South to conduct accurate inventories of their greenhouse gas emissions, set targets and develop action plans.
 
By Jonathan Andrews
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Photo: C40