C40 launches Creditworthiness Network with new academy.
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C40 Cities Climate Leadership Group (C40) said it intends to kick off its Creditworthiness Network in conjunction with funding partner Children's Investment Fund Foundation (CIFF) with Creditworthiness Academy. The network's objective is to assist eight selected cities achieve a credit rating that allows them to finance climate-related projects.
Creditworthiness Academy is a five-day workshop in Amman, Jordan, hosted by the Greater Amman Municipality and delivered in partnership with the World Bank. The Academy will put the eight participating cities on the critical path to sustainable finance through creditworthiness.
C40 chair and Rio de Janeiro Mayor Eduardo Paes said, "Empowering cities economically -- particularly those in developing countries -- to take climate action will not only improve the lives of urban citizens, but also will help nations close the emissions gap on the Road to Paris and beyond. The C40 Creditworthiness Academy and Network will allow cities to access the capital needed to finance infrastructure projects to reduce both carbon emissions and climate risk."
C40 research shows that C40 cities could reduce greenhouse gases by eight gigatonnes by 2050, the equivalent of taking 1.6 billion cars off the road. However, a number of C40 cities do not have a credit rating or access to international capital, and therefore cannot make the investments needed to secure a low-carbon future that would also deliver significant health and economic co-benefits.
CIFF climate change director Shirley Rodrigues said, "Climate change poses the single biggest threat to the future health and livelihood of today's children. To protect and secure a healthy and sustainable future we support the urgent global transition to a low carbon economy. The C40 Creditworthiness Academy and Network is an important part of sharing knowledge on how to finance local carbon infrastructure to keep up with the rapid pace of urbanisation in developing countries."
Research from the World Bank indicates that only four percent of cities in the world's largest developing countries have an international credit rating, and only 20 percent have a domestic credit rating -- a problem creating a significant barrier to cities attracting low-cost capital to finance sustainable infrastructure such as transit, waste and energy systems. Improved creditworthiness will help cities build a pipeline of low carbon infrastructure projects, thereby implementing emissions reductions that are part of national commitments for the 2015 COP21 in Paris.
The C40 Cities Climate Leadership Group connects more than 75 of the world's greatest cities, representing 500+ million people and one quarter of the global economy. Created and led by cities, C40 is focused on tackling climate change and driving urban action that reduces greenhouse gas emissions and climate risks, while increasing the health, wellbeing and economic opportunities of urban citizens.
The Children's Investment Fund Foundation is an independent philanthropic organisation, headquartered in London with offices in Nairobi and New Delhi that works to transform the lives of poor and vulnerable children in developing countries.
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