This report addresses investment in sustainable urban infrastructure and provides an overview of financial instruments that are commonly used to finance infrastructure development. It analyses their potential to support the transition towards sustainable infrastructure, with a primary focus on energy efficiency and renewable energy at city level. Cities are faced with the huge challenge of providing infrastructure that meets the needs of a rising urban population with limited public resources. Cities already account for over 70% of global greenhouse gas emissions and energy consumption and face rising climate change-related risks. The way cities develop, particularly large and fast-growing cities in developing and emerging economies, is likely to have profound and long-term implications for both climate change and the global economy. Decisions and investments in urban infrastructure must be leveraged to achieve sustainable economic growth within the carrying capacity of the planet’s systems and resources. More importantly, this is a unique opportunity to carefully consider investment for sustainable urban infrastructure that avoids the long-term lock-in effects of unsustainable fossil fuel-based technologies and development leading to run away climate change. This report is based on detailed international research including a comprehensive literature review, an online questionnaire, a global webinar, and 20 semi-structured interviews with senior city and finance professionals from cities in Brazil, Canada, India, South Africa, Sweden and the United States as well as global organizations and institutions.
