A number of C40 cities do not have a credit rating or access to international capital and therefore face challenges in making climate-related and other investments that drive economic growth and sustainable development. The C40 Creditworthiness Network helps cities break through these barriers and realize their full potential to build a low-carbon and climate resilient future. The creditworthiness of a city is a vital component of its ability to finance low-carbon, climateresilient projects, particularly in terms of attracting investment and issuing bonds. Cities that have a low level of creditworthiness will struggle to raise the funds needed for new projects or for upgrading existing ones. An investment grade credit rating can help a city unlock access to a wide range of private investors, while the improvements in financial management required to achieve this are also likely to increase the city’s revenue.
This Good Practice Guide focuses on the key elements for a city to successfully increase its creditworthiness with a goal of investing in sustainable infrastructure. These include: