European cities require US$17 billion in financing to fund their green transition, CDP data shows. Financing institutions like the EIB rely on environmental disclosure data to back sustainable investment programmes
The European Investment Bank (EIB) has become the first multilateral development bank to encourage local governments to disclose their environmental data through CDP, the non-profit which runs the global environmental disclosure system used by almost 20,000 organisations worldwide.
In 2021, the EIB became the first such institution to join CDP as one of over 740 capital market signatories that help drive environmental transparency. Deepening this partnership, the EIB is encouraging European cities, states, and regions to disclose their environmental impacts to their stakeholders through CDP in 2023.
This year, more than 2.800 European cities, states and regions have been invited by CDP to publicly disclose their environmental impacts.
The endorsement is in line with the EIB’s Climate Bank Roadmap, which aims to support cities and regions in greening urbanisation through smarter buildings and infrastructure. Data transparency is paramount if the EIB is to successfully back investment programmes that put cities on a path to a maximum 1.5C temperature increase and reduce climate risks for their citizens.
Cities and local governments in Europe are already developing comprehensive infrastructure projects that deliver the climate action needed for a sustainable, equitable, and resilient future. However, cities require greater access to capital to move their projects forward. In 2022, 135 cities across Europe disclosed 527 projects worth US$41 billion, seeking US$17 billion in further investment.
In 2022, nearly 20.000 organizations including over 1.100 subnational governments worldwide reported their climate and nature data through CDP.
CDP has a dedicated questionnaire for states and regions and offers cities CDP-ICLEI Track, the world's leading city climate reporting platform. For all local governments, CDP is a progress and accountability mechanism to take urgent climate action including setting science-based targets.
Werner Hoyer, President of the European Investment Bank Group, commented:
“The EIB Group supports its partners in the transition to a greener economy. Regional and municipal authorities can make a significant contribution in facilitating and accelerating the transition. The EIB Group encourages them to enhance their climate and environmental public disclosures. Robust, material disclosures increase transparency and comparability in the market and enable stakeholders to make well-informed decisions, which in turn drive action.”
The CDP disclosure system for cities, states and regions is also supported by partnerships with global organisations such as ICLEI, C40, the Global Covenant of Mayors, and WWF, while CDP’s system enables cities, states and regions to track progress for the UN-backed climate campaigns Race to Zero and Race to Resilience campaigns.
Maxfield Weiss, Executive Director CDP Europe, commented:
“This endorsement sends a clear message to local and regional governments that major financial institutions like the EIB value their data and need transparency to direct their financing in support of green projects and climate plans. Cities are the source of 70% of global emissions, and CDP data shows that European cities need around US$17 billion of finance to fund their transition to be clean, resilient places to live. I hope this clear call from the EU’s climate bank helps encourage even more cities and regions to disclose TCFD-aligned data to financial institutions and other stakeholders through CDP in 2023.”