Event
Financial innovation for place-based decarbonisation –
The Net Zero Neighborhood and the Climate City Capital Hub models
An event during New York Climate Week
Co hosted with Bankers without Borders
What is this?
Trillions will be required annually by 2050 to address climate risks for urban infrastructure, and yet despite vast pledges of financing for decarbonisation initiatives we still have a significant gap to overcome.
One of the most significant challenges to overcome, is funneling private investment into these initiatives at the scale needed to meet our joint objectives.
In this session we will take a look at how innovative financial mechanisms which can be used to unlock private finance that will enable cities to implement their ambitious climate programmes from a neighbourhood and city region level.
In a bottom-up approach, the conversation will start from the example of decarbonisation at the micro urban level, starting from the CPC experience, and will then zoom out to the municipal and national level with the Climate City Capital Hub.
Focus on the Net Zero Neighbourhood (NZN) Model Background
The NZN concept aims for comprehensive neighbourhood level decarbonisation across multiple asset classes simultaneously: domestic and commercial retrofit; transport; energy; and waste. NZNs can create an investment vehicle using a blended, place-based financial model which can use returns from high-yield assets like renewables to pump-prime lower-yield areas like waste and retrofit.
This innovative financing model for retrofit has been developed to HMT Green Book Standard funded by DESNZ, which recommended a series of demonstrators. The model is supported by investors, and is the subject of investigation and refinement by 3Ci’s Net Zero Investment Task Force. It can be scaled across several locations to create far larger investment portfolios across multiple asset classes, increasing attractiveness to larger scale, patient investors and reducing costs, for example from repeating diligence, legal and procurement work multiple times.
The foundation of the model is predicated on creating a repayment mechanism for the residential retrofit which is relatively straightforward so that residents can understand it, encourages take up for residents, addresses the differences in property types, and balances affordability for residents with long-term financial sustainability for the project.
When & Where:
Tuesday, Sept 24th, 2024
New York