Cities need to find new sources of finance and convince the private sector of the benefits and opportunities stemming from clean, renewable, and low carbon investments. Some C40 cities have successfully accessed such new finance through establishing city climate funds. A city climate fund is an institution set up to finance projects in a city that reduce emissions or improve climate resiliency. The design and operation of these funds vary by city, but some common themes include a degree of independence from political decision-makers in making investment decisions, specialty finance projects and terms, and investment decision criteria linked to a city’s broader environmental, social or economic policy objectives.
The C40 Sustainable Infrastructure Finance Network hosted a series of teleconferences and information exchanges on city climate funds with representatives from Amsterdam, London, Melbourne, New York and Toronto. This Good Practice Guide summarises key strategies highlighted by these cities to share with other cities that may be planning to implement or currently operate similar funds. Thanks to the successful deployment of strategies identified in the guide, these funds have collectively supported more than USD $325 million in sustainable projects.