Financing Environmental and Energy Transitions for Regions and Cities: Creating Local Solutions for Global Challenges

Abstract

To meet the Paris climate goals, we need serious environmental and energy transitions. Financing those transitions will require both the financial and the public sector to transcend business-as-usual and take on new roles and structures in this system change. Current financial practice lacks the structures to deal with local initiatives, and has a narrow focus on financial return calculations. For their part, subnational governments often lack the knowledge to take that role. This gap can be filled by adopting investment criteria based on integrated value, by educating students and practitioners on transitions and systems thinking, and by creating new structures that are adapted to local conditions, with active roles for city and regional governments.