Washington, D.C., November 29, 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.
Climate Investment Opportunities in Cities 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.”
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.
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
• Mexico City — Mexico’s capital represents a $37.5 billion investment
opportunity, particularly in green buildings, electric vehicles, and urban
• Amman—Jordan’s capital represents a $12 billion investment
opportunity, particularly in public transport, green buildings, and electric
• 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.
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
series initiated by IFC in 2016.
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