Cash-strapped cities struggle to clean up their climate act

The world’s cities cannot take action quickly to keep global warming within agreed limits because they lack the money to pay for low-carbon infrastructure, experts say. James Alexander, director of the finance programme at the C40 network of megacities committed to tackling climate change, said its 91 cities would by 2025 have used up their share of the “carbon budget” available to hold global temperature rise to no more than 1.5 degrees Celsius if they don’t reduce emissions more rapidly.

The C40 group is working to “dramatically cut the curve” of planet-warming emissions from cities, which produce more than 70 per cent of total global emissions. “Finance remains the biggest barrier,” he said. Stephen Hammer, manager for climate policy at the World Bank Group, said bank officials saw cities as a strong growth area and had been trying to identify urban opportunities.

Alexander said C40 is working with the German and US governments on a financing facility for cities to provide technical help and build their skills.

For cities in developed countries, a common problem is the projects aren’t big enough to attract big funders, he added.

Frederic Ximeno, ecology commissioner with the Barcelona City Council, said changing the way cities run — such as getting residents to ditch cars for public transport, switching to renewable energy or making buildings more energy efficient — requires action by a lot of people.

Small and medium-sized businesses must also come on board, he said, but companies and communities need support to reduce the risks they face in doing things differently.

In developing countries, the main challenges include insufficient expertise, staff and resources to turn good ideas into bankable projects, said C40’s Alexander.

Francisco Koch, technical director for South Pole Carbon Asset Management, said not enough was being done to invite businesses to work with city authorities on green projects.

“If you send the right signal, the private sector will move very fast,” he told the discussion.

— Thomson Reuters Foundation