Costing the Earth: Funding city climate initiatives with green banks
by Sue Weekes: News editor, Smart Cities World
Green banks are on the rise as cities look for ways to fund essential work to prevent climate change and its effects.
The world needs to spend $2.4 trillion every year until 2035 to mitigate the effects of climate change. This was the stark reality delivered by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) in its Special Report on Global Warming of 1.5°C.
Cities recognise they need to be on the frontline of the action and a growing list have officially declared a climate emergency, including Krakow, London, Liverpool, Paris, New York and Sydney. According to the Climate Emergency Declaration and Mobilisation in Action (Cedamia) website, more than 888 jurisdictions in 18 countries, covering 161 million citizens, have now declared such an emergency.
As the IPCC highlights, though, fighting climate change costs and the race is on to find sustainable ways to fund green initiatives in cities around the world. This is bringing new momentum behind the green bank movement. On July 2, Washington, DC Mayor, Muriel Bowser, signed the District’s Green Finance Authority Establishment Act, officially making it the first city in the country to establish a government-funded green bank. The bank is being capitalised with $105 million of public funds.
The world needs to spend $2.4 trillion every year until 2035 to mitigate the effects of climate change.
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