C40 Cities rolls out initiative to boost financing for green port infrastructure
City mayor network C40 Cities has introduced a sustainability-linked loan framework for ports around the world.
IMAGE: A vessel emitting greenhouse gases. Getty Images
C40 Cities estimates that ports worldwide will require about $1-2 trillion in investment through 2050 to deploy shore power systems and alternative fuel bunkering infrastructure.
However, around $200 billion in sustainability-linked capital “remains untapped” because of technical and regulatory hurdles faced by port operators.
To address these constraints, the coalition has launched an initiative aimed at widening access to sustainability-linked loans for port authorities, particularly in developing economies in the Global South, where financing constraints have slowed progress on decarbonisation.
C40 Cities expect to use its network of nearly 100 cities and associated ports to offer “market guidance, capacity-building programmes, and direct access to finance for port authorities,” it said.
Specifically, C40 Cities aims to:
- Mobilise $1 billion for green port infrastructure within three years
- Prepare more than 50 zero-emission port and shipping projects for investments by 2030
- Support 25-40% emissions cuts in participating port cities by 2035
- Improve financing access for ports in the Global South and Small Island States
The International Finance Corporation (IFC) and the International Association of Ports and Harbors (IAPH) also support this initiative.
“The initiative establishes the first global framework specifically tailored to deploy Sustainability-Linked Loans for port decarbonisation projects worldwide,” C40 Cities said.
The initiative’s next steps include regional workshops and capacity-building programmes from next year.
By Aparupa Mazumder
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