Jakarta, November 30, 2018 — Cities
in emerging markets alone have the potential to attract more than $29.4
trillion in climate-related investments in six key sectors by 2030, according
to a new report by IFC, a member of the World Bank Group.
The report analyzes cities’ climate-related targets and action plans in
the six regions, identifying opportunities in priority sectors such as
green buildings, public transportation, electric vehicles, waste, water,
and renewable energy. It highlights innovative approaches that cities are
already using—such as green bonds and public-private partnerships—to
attract private capital and build urban resilience.
With more than half of the world’s population currently living in urban
areas, cities consume over two-thirds of the world’s energy and account
for more than 70 percent of global carbon dioxide emissions. How cities
address climate change will be critical to efforts to limit global warming
to 1.5 degrees Celsius, according to the Intergovernmental
Panel on Climate Change (IPCC).
“There’s a great urgency to address climate change – we must take meaningful
action now,” said IFC CEO Philippe Le Houérou. “Cities are the next frontier
for climate investments, with trillions of dollars in untapped opportunities.
To deliver on the promise of climate-smart cities, the public sector needs
to enact reforms that are aimed at attracting more private sector financing.”
The report includes detailed assessments of the climate-investment opportunities
in six representative cities spanning a variety of geographies, sizes,
and climate concerns:
- Jakarta — Indonesia’s capital represents
close to $30 billion investment opportunity, particularly in green buildings,
electric vehicles, and renewable energy.
- Nairobi — the Kenyan capital represents
an $8.5 billion investment opportunity, particularly for electric vehicles,
public transport, and green buildings.
- Mexico City — Mexico’s capital represents
a $37.5 billion investment opportunity, particularly in green buildings,
electric vehicles, and urban water.
- Amman—Jordan’s capital represents
a $12 billion investment opportunity, particularly in public transport,
green buildings, and electric vehicles.
- Rajkot— The 22nd fastest-growing
city in the world represents an investment opportunity of $4 billion, particularly
in electric vehicles, public transport, and green buildings.
- Belgrade— Serbia’s capital represents
a $5.5 billion opportunity, particularly in green buildings, public transport,
and urban water.
Globally, green buildings will account for $24.7 trillion of cities’ climate
investment opportunities. Significant investment potential exists in low-carbon
transportation solutions such as energy-efficient public transport ($1
trillion) and electric vehicles ($1.6 trillion). At the same time, clean
energy ($842 billion), water ($1 trillion) and waste ($200 billion) remain
essential components of sustainable urban development.
“With the expected dramatic increase in urban population centers in Asia,
there’s even more of an opportunity for a low-carbon transition in cities,
which already account for much of the GDP in this region,” said IFC Regional
Director for East Asia and the Pacific, Vivek Pathak. “In Jakarta, there’s
about $30 billion investment opportunity, particularly in green buildings,
electric vehicles and renewable energy. The report shows megacities in
Asia also have significant potential for investments that yield emission
Azam Khan, Country Manager for Indonesia, Malaysia and Timor Leste, said,
“IFC offers investment, advisory, and asset-management services to encourage
private-sector involvement which will be much needed to take advantage
of the climate investment opportunities in Jakarta and other major cities
In Jakarta, the report estimates the investment potential in green buildings
is $16 billion; in waste $725 million; public transport $660 million; renewable
energy $3 billion; urban water $3 billion and electric vehicles $7 billion.
Oswar Mungkasa, Deputy Governor of Jakarta for Spatial Planning and Environment,
said, “One of our key ambitions is to make the city of Jakarta cleaner—and
we can tackle this in a number of different ways. One such way is through
green buildings. A mandatory regulation for green building codes was passed
a few years ago, which will help to substantially reduce the consumption
of energy and water. Because of this regulation, potential energy cost
savings are estimated at $90 million annually. We want Jakarta to be known
as a city of excellence for green buildings, and it will take both the
public and private sectors to make this happen, as well as local communities
Addressing climate change is a strategic priority for IFC. Since 2005,
IFC has invested $22.2 billion in long-term financing from its own account
and mobilized another $15.7 billion through partnerships with investors
for climate-related projects. The latest report is part of the Climate
Investment Opportunities report
series initiated by IFC in 2016.
It says with its plans, policies and projects, the Asia Pacific region
has the highest climate smart investment potential of any region in the
world, with by far the biggest opportunity in green buildings, estimated
at a $17.8 trillion opportunity by 2030.
About IFC IFC—a sister organization of the World Bank and member of
the World Bank Group—is the largest global development institution focused
on the private sector in emerging markets. We work with more than 2,000
businesses worldwide, using our capital, expertise, and influence to create
markets and opportunities in the toughest areas of the world. In fiscal
year 2018, we delivered more than $23 billion in long-term financing for
developing countries, leveraging the power of the private sector to end
extreme poverty and boost shared prosperity. For more information, visit