Intelligent SME.tech Issue 27 | Page 68

// SCALING UP //

WHILE CITIES MIGHT HAVE AMBITIOUS CLIMATE GOALS , THEY TYPICALLY
LACK THE NECESSARY ANALYSIS TO BE ABLE TO APPROACH
INVESTORS WITH THEIR CLIMATE ACTION PLANS .
The platform enables city planners to create Climate Investment Plans that can drive capital allocation to the most impactful net zero projects by optimising the deployment of public funding and private finance .
Municipal Green Bonds
One of the most effective ways cities can raise private funds for their climate action plans is to use a Climate Investment Plan to unlock private capital by issuing municipal green bonds that they sell to investors with the promise of a fixed pay-out after a certain time period .
However , many cities have struggled to issue green bonds and access private capital at scale . Local authorities accounted for just 0.8 % of European sustainable bond issuance from 2019 to Q1 2022 , raising just US $ 7.4 billion in 3.25 years .
Cities need to align their climate finance offerings with existing frameworks used in Capital Markets . Impact Intelligence allows city planners to easily do this by transparently providing the analysis and data , in line with CBI and ICMA frameworks , for each Climate Investment Plan .
Helsingborg trial
City planners at Helsingborg in Sweden have already been using ClimateOS to visualise their climate roadmap and are using Impact Intelligence to develop a Climate Investment
Plan to access funds from the EU Commission as one of the EU 100 mission cities .
Using Impact Intelligence , Helsingborg is creating the first Climate Investment Plan which bridges the gap between its municipal budget and the climate investments necessary to reach net zero .
To do this , the plan clarifies which investments will affect the climate , which are needed to achieve carbon neutrality and then shows the municipality where best to spend its money . The plan also includes considerations of nonmunicipal financing ( consumer spending and other investment ).
Helsingborg ’ s plan is enabling them to identify where to direct their investments and the actions that provide the greatest and most cost-efficient benefits .
Niklas Bäckström , Financial Controller , City of Helsingborg , said : " We need to create a Climate Investment Plan as one of the EU 100 Mission Cities . This is supposed to be a ‘ systematic strategy to map out the actions , impact , cost and capital needed to reach climate neutrality by 2030 .’ That ’ s a huge task and ClimateOS makes it possible .
“ The calculation and visualisation of both the sustainable and the economic case that ClimateOS provides us for our Climate Investment Plan will surely facilitate both decision-making and future funding .” �
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