A group of 112 cities aiming to eliminate their net greenhouse gas emissions by 2030 will need a total of €650 billion in investment to meet their target, reports Euractiv.
377 cities applied to join the "100 Climate Neutral and Smart Cities Mission" program. In the end, 100 were chosen from the bloc and 12 from associated countries, which are developing a climate plan with support from the EU and the non-profit consultancy Bankers Without Borders.
This plan will then become an investment project evaluated by the European Commission and independent experts, and at the end of the process each individual city must receive a certificate.
To date, 33 cities have submitted their plans, including Lyon, Seville, Malmö, Lisbon and Florence, with more expected to be approved in October. Projects can include retrofitting buildings to be more energy efficient, as well as adapting infrastructure to withstand more extreme weather events.
"Historically, cities have not been significant partners for the private sector, but progress can be much faster if private capital is more engaged," said Alison Lobb, executive director of Bankers Without Borders.
Financing
To help raise money, the EU is launching the Climate City Capital Hub, which will use guarantees from national governments to attract private finance and cluster small projects that would normally struggle to access finance individually.
Public and private funding can take many forms, including creating local investment funds or issuing bonds to finance specific projects. Bankers Without Borders says that nearly 50 investors have already expressed interest in participating in the project.
The European Investment Bank is ready to cooperate with the center to provide financial and technical advice to cities to help them implement their respective plans.
Cities are a major contributor to climate change, producing 70% of the world's CO2 emissions, according to the International Energy Agency. These emissions range from industries and building energy use to fossil fuel-based transportation systems.
People living in cities are also highly exposed to climate change. Almost half of Europe's urban schools and hospitals are located on urban "heat islands", where dense clusters of buildings and roads absorb heat and raise temperatures more than in green areas, putting vulnerable people at greater risk of heat stress.