This presentation was held during the 5th GIB Summit, May 27-28 2015. The presentation and more information on the Global Infrastructure Basel Foundation are available on www.gib-foundation.org

1. This presentation was
held during the 5th GIB
Summit, May 27-28 2015.
The presentation and
more information on the
Global Infrastructure Basel
Foundation are available
on www.gib-foundation.org
The next GIB Summit will take place in Basel,
May 24-25, 2016.
The information and views set out in this presenation are those of the author(s) and do not necessarily reflect the opinion of the Global
Infrastructure Basel Foundation. Neither the Global Infrastructure Basel Foundation nor any person acting on its behalf may be held responsible
for the use of the information contained therein.

2. FINANCING
SUSTAINABLE
CITIES
JAMES
ALEXANDER
C40
CITIES
CLIMATE
LEADERSHIP
GROUP
CLIMATE
ACTION
IN
MEGACITIES

3.
Ci9es
are
hubs
of
innova9on
and
poli9cal
will.

4.
Ci9es
are
where
the
future
happens.

5.
But
ci9es
are
major
carbon
emiNers
and
vulnerable
to
the
effects
of
climate
change.

6. The
baNle
to
tackle
climate
change
will
be
won
or
lost
in
ci9es.
• Half
the
world’s
popula9on
are
urban
• Ci9es
represent
66%
of
energy
consump9on
• Just
500
ci9es
will
contribute
60%
GDP
&
50%
GHG
emission
growth
to
2030
• 98%
of
C40
members
say
climate
change
is
a
real
risk
to
their
city
• City
leaders
have
shown
a
greater
propensity
to
act
&
work
together

7. 7
WHAT
IS
C40
C40
Ci9es
can
make
a
significant
difference
C40
city
poten-al
CO2
emission
reduc9on
poten9al
of
over
2.8
gigatonnes.
500+
Million
people
79
C40
MEMBER
CITIES
REPRESENT:
25%
of
global
GDP

8.
City
Contribu9on
Willing-­‐
ness
Powers
Respons-­‐
ibility

9.
The
Missing
Piece
Willing-­‐
ness
Powers
Respons-­‐
ibility

10. C40
ci-es
are
taking
ac-on
to
finance
sustainable
infrastructure
in
a
number
of
ways
• Green
City
Bond
–
Johannesburg
• Using
creditworthiness
to
finance
BRT
–
Lima
• Giant
Sea
Wall
/
land
value
capture
–
Jakarta
• Pricing
carbon
&
storm
water
–
Tokyo,
Shenzhen,
Washington
DC
• Crea9ng
a
PPP
office
to
finance
major
infrastructure
–
Lagos
• Crea9ng
a
revolving
fund
and
leveraging
private
capital
–
Toronto,
London,
Amsterdam
CITIES
ARE
TAKING
CLIMATE
ACTION
Examples
of
C40
City
Ac9vity
10

11. Support
for
ci-es
to
prepare
projects
for
investment
• There
is
enough
money
in
the
system
(when
including
public
and
private)
• Ci9es
don't
have
the
capacity
or
resources
to
access
it
• A
project
prepara9on
facility
is
required
CITIES
FACE
FINANCING
CHALLENGES
City
Financing
Priori9es
1
11

12. Access
to
capital
Direct
city
access
to
interna9onal
climate
finance:
• Development
banks
• Development
agencies
(AfD,
DFID
etc)
• Climate
funds
(GEF,
GCF,
etc)
More
powers
to
raise
capital:
• Take
on
debt
• Issue
bonds
CITIES
FACE
FINANCING
CHALLENGES
City
Financing
Priori9es
2
12

13. Reducing
costs
of
capital
• City
creditworthiness
• Credit
enhancement
of
city
projects
• Pursuit
and
u9lisa9on
of
complex
and
innova9ve
financing
mechanisms
CITIES
FACE
FINANCING
CHALLENGES
City
Financing
Priori9es
3
13

14. Achieving
scale
• Moving
from
pilot
to
transforma9ve
projects
• Aggrega9on
of
projects
to
reduce
investor
risk
and
capital
costs
• Homogeneity
CITIES
FACE
FINANCING
CHALLENGES
City
Financing
Priori9es
4
14

15. Scaling
up
investment
in
low-­‐carbon,
climate
resilient
urban
infrastructure
• Coali9on
to
mobilise
finance
for
investment
in
sustainable
urban
infrastructure
• Collec9ve
and
coordinated
ac9on
on
the
supply
and
demand
side
• Key
goals:
• Increasing
visibility
• Increasing
capacity
• Increasing
supply
ADDRESSING
CITY
CHALLENGES
Ci9es
Climate
Finance
Leadership
Alliance
15

16. Alliance
Current
Membership
• African
Development
Bank
• Bank
of
America
Merrill
Lynch
• Bloomberg
Philanthropies
• Carbon
Disclosure
Project
(CDP)
• C40
–
Ci9es
Climate
Leadership
Group
• Ci9bank
• Ci9es
Development
Ini9a9ve
for
Asia
(CDIA)
• Development
Bank
of
La9n
America
(CAF)
• European
Investment
Bank
(EIB)
• FMDV
• French
Agency
for
Development
(AFD)
• German
Development
Bank
(KfW)
• Global
Environment
Facility
(GEF)
• Global
Infrastructure
Basel
(GIB)
• Development
Bank
of
La9n
America
(CAF)
• European
Investment
Bank
• French
Agency
for
Development
(AFD)
• German
Development
Bank
(KfW)
• Gold
Standard
Founda9on
• ICLEI
-­‐
Local
Governments
for
Sustainability
• Japan
Investment
Coopera9on
Agency
(JICA)
• The
Inter-­‐American
Development
Bank
(IADB)
• Johns
Hopkins
University
School
of
Advanced
Interna9onal
Studies
(SAIS)
• Le
Fonds
Français
pour
l'Environnement
Mondial
(FFEM)
• Meridiam
• R20
–
Regions
of
Climate
Ac9on
• Standard
&
Poor’s
Ra9ngs
Services
• UCLG
–
United
Ci9es
and
Local
Government
• Government
of
the
United
States
of
America
• UN-­‐Habitat
• West
African
Development
Bank
(BOAD)
• World
Bank
Group
• World
Resources
Ins9tute
(WRI)
• Worldwide
Fund
for
Nature
(WWF)
ADDRESSING
CITY
CHALLENGES
Ci9es
Climate
Finance
Leadership
Alliance
16
New
Alliance
members
welcome!

17. Closing
the
gap
between
demand
for
sustainable
urban
services,
and
access
to
innova-ve
solu-ons
and
financing
op-ons
• Joint
C40
/
WRI
/
Ci9
Founda9on
project
• Assessing
the
strategic
objec9ves
for
city
infrastructure
projects
and
models
for
achieving
sustainable
services
• Preparing
a
solu9ons
framework
during
2015
ADDRESSING
CITY
CHALLENGES
Delivering
Sustainable
Urban
Services
Project
17

18. FOLLOW US
C40.org
Thank
you
JAMES
ALEXANDER
jalexander@c40.org