Posted by Johann Nacario — October 24, 2024 — CDP, a global nonprofit leading the world’s environmental disclosure system for companies, cities, states and regions, announced the launch of its 2023 U.S. Infrastructure Snapshot, a supplement to the Global Infrastructure Snapshot, delivered in partnership with the Global Covenant of Mayors at COP28 last year.
U.S. map from 2023 U.S. Infrastructure Snapshot, courtesy of CDP. Click to reach interactive map.
The U.S. snapshot provides data disclosed to CDP-ICLEI Track in 2023 on local climate projects and investment needs according to each state and across key sectors, yielding valuable insights on how the rapid emergence of new funding and financing mechanisms such as the Inflation Reduction Act and Bipartisan Infrastructure Law can best be applied. The snapshot is a representative sample of infrastructure data and provides critical insight into the kinds of projects U.S. cities are seeking to advance for climate action, key areas for public and private investment, regional needs and disparities and opportunities for aggregation.
Designed to benefit local and state governments, the U.S. snapshot highlights an understanding of local project needs and tracking municipal climate action, particularly to awardees of federal funding initiatives like the Greenhouse Gas Reduction Fund, as well as technical assistance and capital market providers. The snapshot identifies 270 projects across the priority sectors of the Greenhouse Gas Reduction Fund, including 121 projects in buildings and energy efficiency from 80 cities, 88 projects in transport from 60 cities and 61 projects in renewable energy from 47 cities, totaling US$18.3 billion in financing needs.
On the strength of its annual disclosure process, CDP’s compendium of projects is expanding every year, which includes cities, states and public authorities disclosing their climate finance needs, along with details on the local impacts of climate change and ongoing mitigation efforts. In 2023, over 160 U.S. cities and six U.S. states, representing over 25% of the U.S. population, reported climate risks, climate action plans and projects at all stages of development through CDP.
Local climate projects from 2023 U.S. Infrastructure Snapshot, courtesy of CDP. Click to reach interactive graphic.
Katie Walsh, CDP’s Head of Climate Finance for cities, states and regions and North America Lead, stated:
CDP’s snapshot of the latest U.S. project pipeline shines a light on how city and county projects can be supported under initiatives from the Inflation Reduction Act to deliver on the United States’ most historic funding package ever for climate action. Local governments across the country have been working on their climate, resilience and environmental goals and have a range of projects to achieve them. CDP stands ready to connect these projects with valuable preparation support, funding and financing initiatives as well as a mechanism to track local implementation.
Angie Fyfe, executive firector, ICLEI, remarked:
Congratulations to the 130 U.S. cities and counties who reported on climate projects seeking financing. We must continue to mobilize capital markets if we are to meet our collective goals to improve the livability of our communities, protect and restore nature and achieve a just transition to a carbon-free economy. Local governments that report through the CDP – ICLEI Track are leading this push for investment, and they should be recognized for their efforts.
CDP analysis covers a wide range of relevant metrics, including the status of climate action plans, mitigation and adaptation measures already in place, factors that impact a jurisdiction’s ability to implement projects and the identification of climate hazards. In addition to project data, CDP provides context on a local government’s social, political and economic environment, allowing stakeholders to place projects into the local context and appropriate funding.
Robert Fernandez, director, ESG Research, Breckinridge Capital Advisors, pointed out:
The U.S. municipal bond market plays a crucial role in financing the Country’s infrastructure plan, including supporting cities, states and public authorities in their response to climate change. Being able to access critical climate data and information, like from the CDP-ICLEI Track, helps municipal bond investors like Breckinridge access additional information about a local government’s climate challenges and goals.
The Snapshot, which tracks projects seeking financing and funding, is crucial to delivering on local environmental progress, says CDP.
Kate Wright, executive director of Climate Mayors, asserted:
Local governments stand at the forefront of climate action, driving change through innovative projects that increase community resilience. Climate Mayors are meeting the moment by leveraging unprecedented federal support to increase the scale and ambition of climate action. Tools that can help cities track climate progress, match projects with available funding and guide investments are critical to our shared success.
CDP encourages more cities and states and regions and public authorities to share critical information on their pending projects through the current 2024 disclosure cycle to help connect with increasingly available funding and financing opportunities through the Inflation Reduction Act.
View the 2023 U.S. Infrastructure Snapshot, with interactive map and graph, at CDP.
