Zurich – The first finance innovation lab for accelerating climate action in European cities has been launched. Its goal is to help cities develop novel instruments to finance climate action projects.
The City Finance Lab was launched by South Pole Group, Climate-KIC, the Global Fund for
Cities Development (FMDV), CDP and the
Climate Finance and Investment
Centre at Imperial College Business School.
According to a statement announcing the launch, it
is the first finance innovation lab for accelerating climate action
in European cities. By developing novel financial instruments, the
City Finance Lab hopes to leverage $500 million in additional
finance for climate action in cities.
The lab will be scaled up over a three-year period, during
which time it will bring together investors and cities and invite
them to submit proposals for innovative financial instruments,
which it will then help them develop through its incubation
programme.
The need for climate finance for cities is pressing. According
to the World Bank, less than 15 per cent of
global climate finance has reached cities, yet the demand for
investments to improve the climate-impacts and climate-resilience
of urban infrastructure will continue to rise in the future.
“Investments in cities are key for a successful transition to
a low-carbon and climate resilient future,” said Renat Heuberger,
CEO South Pole Group.
