Do cities need a Green Development Bank?
The idea of establishing a financial institution lending directly to cities for sustainable development seeks contributions and feedback
- May 05, 2019 20:00
- Aseniya Dimitrova
Cities are widely regarded as the main actors in ecological transition and more green economies. Yet, they are chronically underfunded to implement the necessary steps and achieve good results. So, a new working paper, published last week by the C40 Cities Climate Leadership Group (C40, a network of the world’s megacities committed to addressing climate change) and the Overseas Development Institute (ODI), supported by ClimateWorks Foundation and Baker McKenzie, puts forward the establishment of a new institution charged with funding green city projects. The paper recognizes the existing gap in abilities to meet the needs of substantial urban infrastructure adaptation to climate change with financial means. The latter, acknowledges the paper, is particularly severe among low and middle-income countries, which lack behind in the transition to carbon-neutral economy.
With this respect, the paper suggests that a Green Cities Development Bank should be created, which combines the main aspects of development banks with the proven green bank model, focused on city support. Cities and subnational governments could thus be enabled to develop at accelerated pace and implement their sustainable infrastructure projects thanks to direct lending from the bank.
All interested stakeholders are invited to submit their feedback, observations or comments on the proposal (read full text and details from this link) to firstname.lastname@example.org to the attention of James Alexander, Director of the City Finance Programme at C40 Cities.
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