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Valuing development co-benefits to make low-carbon investment in cities bankable

12 October 2016

This work assesses the value of co-benefits of low carbon investments and provide a comparative analysis between projects in waste and transportation sectors.

Three sets of studies have been analyzed — representative urban waste and transportation projects in Indonesia, Kenya, Sri Lanka— to compare the market and economic value of climate and development co-benefits.

Monetizing development co-benefits

The findings show that under current market conditions, climate benefits have little effect on projects’ financial viability, and can be effectively ignored. However, it is found that the monetization of development co-benefits significantly improves financial viability, based on calculated net present values and internal rates of return. The results highlight the importance of local, national and international financing and policies that monetize such development co-benefits.

Relevance for policy, public and private parties

This factsheet is prepared based on the finding a research paper (over the cases of RBF project) which will be published in a peer reviewed journal.
The findings would be of interest of urban policy makers, project developers, donors, development agencies and climate financing institutes.

To the Factsheet

The factsheet can be accessed through the download section or directly here.