A few days ago, Z/Yen Group published a new report titled "Financing the Transition: Sustainable Infrastructure inCities" in collaboration with WWF.

 

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.

 

Findings include:

  • 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.