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Washington, D.C., November 29, 2018
— Cities in emerging markets alone have the potential to attract more than $29.4 trillion in climate-related investments in six key sectors by 2030, according to a new
report
by IFC, a member of the World Bank Group.
Climate Investment Opportunities in Cities
analyzes cities’ climate-related targets and action plans in the six regions, identifying opportunities in priority sectors such as green buildings, public transportation, electric vehicles, waste, water, and renewable energy. It highlights innovative approaches that cities are already using—such as green bonds and public-private partnerships—to attract private capital and build urban resilience.
With more than half of the world’s population currently living in urban areas, cities consume over two-thirds of the world’s energy and account for more than 70 percent of global carbon dioxide emissions. How cities address climate change will be critical to efforts to limit global warming to 1.5 degrees Celsius, according to the
Intergovernmental Panel on Climate Change (IPCC)
.
“There’s a great urgency to address climate change – we must take meaningful action now,” said IFC CEO Philippe Le Houérou. “Cities are the next frontier for climate investments, with trillions of dollars in untapped opportunities. To deliver on the promise of climate-smart cities, the public sector needs to enact reforms that are aimed at attracting more private sector financing.”
Green buildings will account for $24.7 trillion of cities’ climate investment opportunities. Significant investment potential exists in low-carbon transportation solutions such as energy-efficient public transport ($1 trillion) and electric vehicles ($1.6 trillion). At the same time, clean energy ($842 billion), water ($1 trillion) and waste ($200 billion) remain essential components of sustainable urban development.
The report includes detailed assessments of the climate-investment opportunities in six representative cities spanning a variety of geographies, sizes, and climate concerns:
•
Jakarta
— Indonesia’s capital represents close to $30 billion investment opportunity, particularly in green buildings, electric vehicles, and renewable energy.
•
Nairobi —
the Kenyan capital represents an $8.5 billion investment opportunity, particularly for electric vehicles, public transport, and green buildings.
•
Mexico City
— Mexico’s capital represents a $37.5 billion investment opportunity, particularly in green buildings, electric vehicles, and urban water.
•
Amman
—Jordan’s capital represents a $12 billion investment opportunity, particularly in public transport, green buildings, and electric vehicles.
•
Rajkot
— The 22
nd
fastest-growing city in the world represents an investment opportunity of $4 billion, particularly in electric vehicles, public transport, and green buildings.
•
Belgrade
— Serbia’s capital represents a $5.5 billion opportunity, particularly in green buildings, public transport, and urban water.
Addressing climate change is a strategic priority for IFC. Since 2005, IFC has invested $22.2 billion in long-term financing from its own account and mobilized another $15.7 billion through partnerships with investors for climate-related projects. The latest report is part of the
Climate Investment Opportunities
report series
initiated by IFC in 2016.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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