The greening of municipal infrastructure investments: technical assistance, instruments, and city champions

Jeremy Gorelick; Neil Walmsley; Jeremy Gorelick; Neil Walmsley

doi:10.3934/GF.2020007

Green Finance

2020, Volume 2, Issue 2: 114-134. doi: 10.3934/GF.2020007

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The greening of municipal infrastructure investments: technical assistance, instruments, and city champions

Jeremy Gorelick ^{1
,
,},
Neil Walmsley ²

1.
Whiting School of Engineering, Johns Hopkins University, Baltimore, Maryland, United States
2.
EIT Climate-KIC, European Institute for Innovation & Technology, London, UK

Received: 09 February 2020 Accepted: 25 March 2020 Published: 01 April 2020
JEL Codes: H70, H74, H77, O11, O18, O19, Q58, R51

Cities in developing countries are faced with unique problems due to climate change, internal migration and general population growth. Urban population growth brings with it many benefits, but in cash-constrained municipalities this can be particularly problematic as the financial resources cannot keep pace with municipal infrastructure needs or environmentally-responsible decision-making. The confluence of these factors has widened the infrastructure finance gap in cities in developing countries and has made municipal leaders recognize the need to expand the variety of mechanisms available to help to close the infrastructure finance gap. However, in many cities, the commitment to green principles is driven by donors and external agencies, not from a deep appreciation of best practices for green principles or even the desire to make a city more climate resilient. This paper argues that the most effective way to institutionalise green practices within a city is not through a specially-dedicated environmental strategy but rather through a more well-established champion: the city's treasurer or chief financial officer.
- cities,
- green finance,
- municipal finance,
- municipal infrastructure,
- developing countries,
- economic development,
- green bonds
Citation: Jeremy Gorelick, Neil Walmsley. The greening of municipal infrastructure investments: technical assistance, instruments, and city champions[J]. Green Finance, 2020, 2(2): 114-134. doi: 10.3934/GF.2020007

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Abstract

Cities in developing countries are faced with unique problems due to climate change, internal migration and general population growth. Urban population growth brings with it many benefits, but in cash-constrained municipalities this can be particularly problematic as the financial resources cannot keep pace with municipal infrastructure needs or environmentally-responsible decision-making. The confluence of these factors has widened the infrastructure finance gap in cities in developing countries and has made municipal leaders recognize the need to expand the variety of mechanisms available to help to close the infrastructure finance gap. However, in many cities, the commitment to green principles is driven by donors and external agencies, not from a deep appreciation of best practices for green principles or even the desire to make a city more climate resilient. This paper argues that the most effective way to institutionalise green practices within a city is not through a specially-dedicated environmental strategy but rather through a more well-established champion: the city's treasurer or chief financial officer.

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