Page 40 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

In the context of smart cities, employing technology transfer facilitates organizational
efficiency and allows for the integration of knowledge relating to utilization of emerging
technologies at the micro- and macro levels for urban operations. Secure funding sources
and financial mechanisms are essential to support participatory partnerships and stakeholder
relationships to sustain or initiate technology transfers. Not only does the assimilation
of technologies in smart cities require investment, different types of technologies may
also need to be adapted based on the needs of the citizens. Most SSC endeavours are
driven by public-private sector financing mechanisms which veer towards infrastructure
development and creating an investment-friendly ecosystem that focussing on research
and development along with the incorporation of technologies like artificial intelligence
(AI), Internet of Things (IoT), digital twin, virtual reality among others. These guidelines
shall further provide insights into appropriate policy frameworks and guidance schemes
for generating and supporting source funding for the establishment as well as transition
to smart sustainable cities.

Ten recommendations for creating a list of investment-grade projects and a sustainable urban
development cycle

Below are 10 recommendations which can be used by city governments to improve their urban
development policy and develop investable projects which will improve the lives of citizens. Each
recommendation includes a short example, reflecting how it can be used in practice.

Recommendation 1: use the SDG framework as the language for urban development

SDGs can act as a new global development language for all United Nations member States. This
language helps to develop a clear understanding of the aims of the project among stakeholders
and, therefore, increases the chances of development projects finding the best possible partners
and financial support.

There are a lot of efforts done globally on SSC standardization work which is in line with the SDGs
as well as other international instruments including the Paris Agreement, the 2030 Agenda and
others. For example, the International Telecommunication Union (ITU), through the ITU-T Study
1
Group 20 on Internet of Things for Smart Cities and Communities (SG20) has conducted significant
work in this sphere. The relevant ITU-T Standards can be found on the website of the organisation.
2
The 2030 Agenda introduced 17 SDGs targeted at achieving “peace and prosperity for the people
and the planet”. Importantly, it suggested implementing these goals through global partnerships.

The language of SDGs is being used more and more in the private sector. While private-sector
investors may not wish to donate money for a generic “city development” purpose, they might be
eager to invest in a project which will have a tangible outcome, for example, improved efficiency of

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