Page 14 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

According to the Action Agenda, to effectively support the implementation of the 2030 Agenda,
the following measures should be taken:

(a) set up appropriate policies and regulatory frameworks to unlock private finance, trade
collaborations and opportunities, and science and technological development, and to incentivize
changes in production and investment patterns;
(b) mobilize public finance; and

(c) develop innovative financing instruments, such as PPPPs.

As the COVID-19 pandemic hit cities and communities worldwide, the topic of financing became
even more central. On 28 May 2020, the United Nations High-Level Event on Financing for
Development in the Era of COVID-19 and Beyond gathered more than 50 Heads of State and
governments to discuss the impact this blow has caused to the world economy, as well as potential
strategies for recovery. United Nations projections indicate that the pandemic could slash nearly
USD 8.5 trillion from the global economy over the next two years. The need to create a space
in which private-sector creditors can proactively engage in effective and timely solutions was,
therefore, outlined among the six critical focus areas. 5

These Guidelines suggest a set of tools and insights aimed at helping governments at local, regional
and national levels to enhance urban investment strategies, by:

(a) aligning them with the 2030 Agenda;

(b) using the suggested tools to structure urban development projects in an investment-attractive
way; and

(c) taking into account how investors assess the attractiveness of potential urban projects for
financing.

The 2030 Agenda at the local/municipal level

More than half of the planet’s inhabitants live in cities, and this number continues to grow. Promoting
sustainable urban development and building SSCs is the focus of SDG 11: “Making cities and
human settlements inclusive, safe, resilient and sustainable”. Achieving SDG 11 will require the joint
efforts of governments and non-government stakeholders, working at national, global, regional
and local levels. Representatives of all sectors – civil society, private sector, local communities,
and national and local governments – must be included in the process. SSC projects have the
potential to become a platform for this on-the-ground cooperation, as the implementation of SDG
11 will often take place at a local level, in cities. For representatives from all sectors to collaborate
effectively, it is critical that all actors have the same understanding of the framework. This publication
aims to provide this.

The Addis Ababa Action Agenda recognizes that investing in sustainable and resilient infrastructure,
including transport, energy, water and sanitation for all, is a prerequisite for achieving many of

xii U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects