C40 Cities, IAPH, IFC unveil sustainability-linked loan for ports to tackle 'critical' funding gap

C40 Cities, a worldwide network of major cities’ mayors working to tackle the climate crisis and halve greenhouse gas (GHG) emissions by 2030, has unpacked a global port sustainability-linked loan (SLL) initiative.

The endeavor, announced on November 4 at a summit, is supported by the International Association of Ports and Harbors (IAPH) and the International Finance Corporation (IFC). The partnership reportedly formalizes a memorandum of understanding (MoU) signed between C40 and the IFC in September 2024.

The partnership is to focus on unlocking “massive investments” for environmentally friendly port infrastructure development projects with the overarching goal of speeding up maritime decarbonization. Per officials from C40 Cities, the initiative will set up “the first global framework tailored to deploy SLLfor port decarbonization projects” around the world.

“Ports are gateways of international trade, and this global framework sets a new precedent, sending clear signals to the market and accelerating the pace and scale of climate finance for critical investments in zero-emission port infrastructure,” C40 Cities Managing Director of Climate Finance, Knowledge, and Partnerships Andrea Fernández highlighted.

As elaborated, the collaboration will target $1 billion in green