Financing Climate-Resilient Infrastructure in Cities

Abstract

Cities stand at the forefront of climate adaptation as they face the risk of disastrous climate change impacts. Indian cities are vulnerable to climate change impacts due their geographic location; therefore, they need to build climate-resilient infrastructure to survive, adapt, and grow. Investing in climate-resilient projects will help cities in preventing climate disaster cost and will result in swift recovery from disaster. However, several challenges are constraining Indian cities to finance climate-resilient projects. Cities can use novel ways to raise capital from mainstream financers. Innovative financial instruments, mechanisms, and business models and the judicious use of public capital can help municipalities attract private capital. Cities should smartly select projects and financial instruments and deploy appropriate financial strategy to raise capital from private financers.