Our commitment to scaling up climate investments and minimising exposure to fossil fuel assets
The Clean Investment Accelerator empowers mayors to lead the transition toward a low-carbon economy by driving investment away from high-risk, polluting sectors and championing investment in sustainable, green, and job-creating industries. This approach supports C40’s mission to help cities reduce their reliance on fossil fuels and contribute to the global effort to prevent climate breakdown.
The Accelerator focuses on the material risks associated with continued investment in fossil fuels, which have been declining in value for years, and the opportunities presented by clean, sustainable investments. By reorienting investment toward green sectors, cities can reduce exposure to climate-related financial risks while tapping into the green economy’s growing potential and supporting good, green jobs.
The initiative is grounded in the understanding that responsible investment is essential for cities’ long-term economic stability and prosperity. It aligns with the growing recognition among mayors, financial institutions, and other stakeholders that redirecting capital into clean, sustainable sectors is not just the right thing to do, but also a prudent and strategic decision for long-term economic prosperity.
Through championing clean investment, mayors are promoting the crucial transition to a more resilient, prosperous and sustainable economy, and using their influence to call on other actors to join them in creating the resilient and sustainable economy needed now.
Now is the time for all governments and financial actors to step up their climate ambition, by shifting investments away from fossil fuels and towards clean industries which are necessary to create new, good jobs, and protect people’s health, climate stability, and financial savings.
Within 5 years of signing and by 2030 at the latest, mayors commit to:
1. Take all possible steps to remove and stop investment in fossil fuels companies, from our city assets (e.g. municipal investments/ cash assets/ reserve funds/ trusts) and increase our financial investments in climate solutions, including those that create good jobs and a just, green economy
Actions to deliver
- Make a commitment to remove and stop future investments in fossil fuels companies, from our city assets (e.g. municipal investments/ cash assets/ reserve funds/ trusts).
- Make a commitment to increase municipal investments in climate solutions, including those that create equitably distributed, good jobs.
Additional action (optional)
- Develop financial vehicles (e.g. city funds / green bonds) to leverage investment into climate projects.
2. Take at least one action to advocate for clean and sustainable finance by other investors and all levels of government, including by promoting strong, long-term climate policies and demanding greater transparency
Actions to deliver
- Use our influence to advocate and engage other actors, such as private financial or academic, cultural or health institutions, and our regional and national governments, to reallocate investment to green, job-creating sectors.
- Advocate publicly for an end to fossil fuel finance, including investment in a just transition which supports equitable access to decent jobs (e.g. in speeches, op-eds).
- Engage with the mayors of other cities to issue a collective call for fossil-free finance e.g. to larger (regional or national-level) pension funds, or to banks or asset managers.
3. Where applicable, take at least 1 action to call on our pension funds to remove and stop future investments in fossil fuel companies, and increase investments in climate solutions including those that create good jobs and a just, green economy
Actions to deliver
- Encourage the city (or regional/national) pension fund to develop a policy to remove and stop future investments in fossil fuel companies, as part of a wider climate risk management strategy and within their fiduciary responsibilities.
- Encourage the city (or regional/national) pension fund to develop a policy to invest in climate solutions, including those that create equitably distributed, good jobs, as part of a wider climate risk management strategy.
- Encourage the city (or regional/national) pension fund to make a net zero commitment and adopt a credible framework e.g. aligned with the HLEG recommendations for integrity, or a similarly credible implementation framework.
- Encourage year-on-year improvement and request regular progress reports on how the relevant portfolios manage climate-related financial risks and opportunities.
Impact
The more cities that join the network, the greater the amount of investor capital committed to being shifted away from fossil fuels and towards a clean energy, job-creating future. This is critical for accelerating the global transition off fossil fuels, and driving investment into green city projects.
20 cities have now signed the pledge, representing significant progress since 2020 when the Accelerator launched. Together, Clean Investment Accelerator cities now represent over US$ 500 billion of pension fund capital and municipal finance, and 54 million people committed to driving money away from the increasingly risky fossil fuel industry and towards clean energy and sustainable, job-creating solutions.
Key achievements include:
- US$ 84 billion of municipal finance is now fossil fuel-free.
- US$ 43 billion of city pension fund capital is being invested in renewables and green, job-creating climate solutions.
- 16 public pension funds across 12 cities, responsible for over US$ 420 billion, have policies in place to scale up green investments and/or divest from fossil fuel companies.
Read the latest report on city Clean Investment progress here.
Signatory cities:
Auckland, Berlin, Boston, Bristol, Cape Town, Copenhagen, Durban (eThekwini), Glasgow, London, Milan, Montréal, New Orleans, New York, Oslo, Paris, Pittsburgh, Rio de Janeiro, Seattle, Vancouver
For new signatories, download the planned actions template here and submit to cleaninvestment@c40.org for review.