Growing urbanisation means that new housing and new infrastructure needs to be built. The goals of the Paris climate agreement cannot be achieved if the cities of the future are built mainly from cement, steel and glass, as was the case in the past. Construction therefore needs to become more efficient, climate-friendly and resource-saving. By modernising existing buildings and ensuring that new ones meet sustainability standards, by 2050 the energy consumption of buildings could be reduced by half. Nature-based solutions offer a sustainable alternative or additional option to technological approaches.
In the next 15 years, an estimated 93 trillion US dollars will need to be invested worldwide in climate-friendly and sustainable infrastructure – more than 4.5 times the gross domestic product of the US.
Accordingly, a major share of German financial cooperation is already being directed towards urban infrastructure or towards supporting the urban population in our partner countries. As part of these efforts, innovative financing instruments are increasingly being used to mobilise private capital.
In order to continue supporting cities in coping with this massive need for investment, Germany contributes to the global Cities Climate Finance Leadership Alliance (CCFLA). The Alliance brings private and public-sector players together who share the goal of capitalising more climate finance for cities. This is done partly via the City Climate Finance Gap Fund, which is to be used to mobilise up to four billion euros for climate-friendly infrastructure in cities. Furthermore, in collaboration with the cities network C40 (External link), the BMZ has been supporting cities’ efforts to prepare sustainable infrastructure projects via the Cities Finance Facility (CFF) for some time now.