reports

City Investment Analysis Report

The present opportunities and limitations for private finance to participate in city Net Zero transitions.

October 9, 2021

From 2021 to 2025, the Cities Commission for Climate Investment (3Ci) was a partnership between Connected Places Catapult, Core Cities UK, London Councils, Key Cities, the Scottish Cities Alliance, and other local authorities across the UK.

3Ci's purpose was to support local authorities in securing the long-term finance required to achieve net zero. By bringing together local authorities, investors, and businesses, 3Ci developed innovative investment models and helped mobilise large-scale capital for decarbonisation. Its mission was to create investable propositions that deliver carbon reduction, resilience, and community benefit across the UK.

About the report

This UKCCIC report has been supported by Connected Places Catapult, Core Cities UK, and London Councils. The focus is therefore the UK’s Core Cities and London, though the findings are widely applicable to the rest of the UK.

The report is structured around a review of the key urban infrastructure sectors relevant to Net Zero: commercial building decarbonisation, domestic building decarbonisation, renewable electricity generation, transport decarbonisation, waste management decarbonisation, and green infrastructure. Each of these sectors has been evaluated to identify theoretical opportunities for private financing and hurdles to be overcome. Practical examples of projects requiring finance are also presented to illustrate the opportunities available for private sector investors.

Using the sector-specific evaluations, the report collects findings regarding the present opportunities and limitations for private finance to participate in city Net Zero transitions, and develops recommendations for actions to enhance the scale of private sector involvement in the coming years.