Cities in emerging markets have the potential to attract more than $29.4 Trillion USD in cumulative climate-related investments by 2030 according to a new report from the International Finance Corporation (IFC).
The report, released November 29, assesses the climate investment opportunity available across six key sectors in Jakarta, Rajkot, Belgrade, Amman, Nairobi, and Mexico City. It also addresses urban resilience, financing solutions, and includes deep dives into the specific cities – one from each region – representing various sizes and stages of development.
"Climate Investment Opportunities in Cities - An IFC Analysis" identifies opportunities in priority sectors such as green buildings, public transportation, electric vehicles, waste, water, and renewable energy.
“There’s a great urgency to address climate change – we must take meaningful action now. 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,” said IFC CEO Philippe Le Houérou in a written statement.
Already, more than half of the world’s population lives in urban areas. This is expected to increase to 70 percent by 2050 but a majority of the required infrastructure is yet to be built. The report suggests that climate considerations must play a major role in urban planning decisions taken now, and in all infrastructure projects commissioned for the upcoming decades. The success or failure of cities at addressing climate change will be pivotal to efforts to limit global warming to 1.5 degrees Celsius.