The report reviews financing instruments commonly used to finance infrastructure and assesses their potential to finance the transition towards sustainable infrastructure, with a focus on energy efficiency and renewable energy projects at city level.
Some financial instruments have higher potential to support investment in sustainable infrastructure. Whether this potential can be achieved depends on instrument design and scope; the integration of sustainability into investment and lending criteria; and conducive and stable public policies.
The lack of investable projects seems to be the main issue preventing sustainable infrastructure investment at scale rather than the lack of finance.
Cities should develop coherent investment propositions to attract finance for sustainable infrastructure, based on a 'product & marketing approach' to infrastructure financing.
Collaboration among key stakeholders including city departments, financial institutions and government entities at all levels is key to unlocking investment in sustainable infrastructure.