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Green Bonds for Cities: a Strategic Guide for City level Policymakers in Developing Countries

The Climate Policy Initiative (CPI) published the report “Green Bonds for Cities: a Strategic Guide for City level Policymakers in Developing Countries” that aims to help cities in developing countries to access green bond market flows, a potential source of finance for cities in developing countries looking to secure investment in low-carbon, climate-resilient infrastructure to meet the water, energy, housing and transportation needs of their expanding urban populations.

Key points

CPI analysis of the projects underlying green bonds currently in the market shows USD 2.3 billion in value is linked with city-based projects in developing countries, including urban mass transit systems, district heating and water distribution networks. To put this in context, this represents:

  • 1.7% of total green bond market flows since 2007;
  • 6% of all flows to developing countries: A total of USD 38 billion of the proceeds from green bonds issued by development finance institutions (DFIs), commercial banks, and corporations has been directed toward projects in developing countries;
  • 11% of flows to all city-based projects worldwide: USD 17 billion has been raised by cities in developed countries such as the US, France, and Sweden.