New Perspectives on Results-Based Blended Finance for Cities
There is clear evidence on the need for cities to rapidly scale-up their investments in climate change mitigation programs and build strong foundations for climate-resilient communities. Investing in low carbon infrastructure and climate resilience...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/917181563805476705/Innovative-Finance-Solutions-for-Climate-Smart-Infrastructure-New-Perspectives-on-Results-Based-Blended-Finance-for-Cities http://hdl.handle.net/10986/32192 |
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okr-10986-321922021-05-25T09:26:47Z New Perspectives on Results-Based Blended Finance for Cities World Bank Group URBAN PLANNING URBAN INFRASTRUCTURE MUNICIPAL FINANCE INFRASTRUCTURE FINANCE BLENDED FINANCE RESULTS-BASED FINANCE GREEN BONDS CLIMATE RESILIENCE There is clear evidence on the need for cities to rapidly scale-up their investments in climate change mitigation programs and build strong foundations for climate-resilient communities. Investing in low carbon infrastructure and climate resilience can generate competitive returns and is crucial for preventing a reversal of the development gains made in low-income countries up until now. Overcoming the barriers in financing climate-smart infrastructure in cities means adjusting their currently unattractive and inadequate risk-return investment profile. Our analysis explains that well-targeted concessional funding can derisk the financing structure of a project and turn a typical non-bankable project to financial viable one. Additionally, it makes the case for results-based blended finance approaches that strengthen the accountability in project development by linking financing to the achievement of measurable, pre-agreed results. Addressing the lack of creditworthiness, the limited accountability and capacity in institutions and service delivery practices should be at the center of urban investment strategies. The report highlights the need for technical assistance and capacity building programs that will support cities bring order to their financing and accounting practices, support shadow credit ratings and help them become creditworthy. It is estimated that only 20 percent of the 500 largest cities in developing countries are considered creditworthy. Cities and development partners face a common challenge: Making the most effective use of available public finance instruments and disburse scarce public (concessional) funds in a way that maximally leverages private sector co-investments. 2019-08-06T20:19:26Z 2019-08-06T20:19:26Z 2019 Report http://documents.worldbank.org/curated/en/917181563805476705/Innovative-Finance-Solutions-for-Climate-Smart-Infrastructure-New-Perspectives-on-Results-Based-Blended-Finance-for-Cities http://hdl.handle.net/10986/32192 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Infrastructure Study |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
URBAN PLANNING URBAN INFRASTRUCTURE MUNICIPAL FINANCE INFRASTRUCTURE FINANCE BLENDED FINANCE RESULTS-BASED FINANCE GREEN BONDS CLIMATE RESILIENCE |
| spellingShingle |
URBAN PLANNING URBAN INFRASTRUCTURE MUNICIPAL FINANCE INFRASTRUCTURE FINANCE BLENDED FINANCE RESULTS-BASED FINANCE GREEN BONDS CLIMATE RESILIENCE World Bank Group New Perspectives on Results-Based Blended Finance for Cities |
| description |
There is clear evidence on the need for
cities to rapidly scale-up their investments in climate
change mitigation programs and build strong foundations for
climate-resilient communities. Investing in low carbon
infrastructure and climate resilience can generate
competitive returns and is crucial for preventing a reversal
of the development gains made in low-income countries up
until now. Overcoming the barriers in financing
climate-smart infrastructure in cities means adjusting their
currently unattractive and inadequate risk-return investment
profile. Our analysis explains that well-targeted
concessional funding can derisk the financing structure of a
project and turn a typical non-bankable project to financial
viable one. Additionally, it makes the case for
results-based blended finance approaches that strengthen the
accountability in project development by linking financing
to the achievement of measurable, pre-agreed results.
Addressing the lack of creditworthiness, the limited
accountability and capacity in institutions and service
delivery practices should be at the center of urban
investment strategies. The report highlights the need for
technical assistance and capacity building programs that
will support cities bring order to their financing and
accounting practices, support shadow credit ratings and help
them become creditworthy. It is estimated that only 20
percent of the 500 largest cities in developing countries
are considered creditworthy. Cities and development partners
face a common challenge: Making the most effective use of
available public finance instruments and disburse scarce
public (concessional) funds in a way that maximally
leverages private sector co-investments. |
| format |
Report |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
New Perspectives on Results-Based Blended Finance for Cities |
| title_short |
New Perspectives on Results-Based Blended Finance for Cities |
| title_full |
New Perspectives on Results-Based Blended Finance for Cities |
| title_fullStr |
New Perspectives on Results-Based Blended Finance for Cities |
| title_full_unstemmed |
New Perspectives on Results-Based Blended Finance for Cities |
| title_sort |
new perspectives on results-based blended finance for cities |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/917181563805476705/Innovative-Finance-Solutions-for-Climate-Smart-Infrastructure-New-Perspectives-on-Results-Based-Blended-Finance-for-Cities http://hdl.handle.net/10986/32192 |
| _version_ |
1764475993308790784 |