gib2015_instruments for increasing capital flows_alexander
TRANSCRIPT
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.
FINANCING SUSTAINABLE CITIES
JAMES ALEXANDER C40 CITIES CLIMATE LEADERSHIP GROUP
CLIMATE ACTION IN MEGACITIES
Ci9es are hubs of innova9on and poli9cal will.
Ci9es are where the future happens.
But ci9es are major carbon emiNers and vulnerable to the effects of climate change.
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
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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
City Contribu9on
Willing-‐ness
Powers
Respons-‐ibility
The Missing Piece
Willing-‐ness
Powers
Respons-‐ibility
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
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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
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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
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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
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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
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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
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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
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New Alliance members welcome!
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
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