C40 Cities, supported by the International Finance Corporation (IFC) and the International Association of Ports and Harbors (IAPH), has announced the launch of the Global Port Sustainability-Linked Loan (SLL) Initiative at the C40 World Mayors Summit.
This transformative partnership is designed to unlock massive investment in sustainable port infrastructure and accelerate the maritime sector’s just transition to net zero.
The initiative establishes the first global framework specifically tailored to deploy Sustainability-Linked Loans for port decarbonisation projects worldwide.
By combining C40’s network of nearly 100 cities and dozens of ports, IFC’s expertise in structuring climate finance transactions, and IAPH’s global alliance of 201 ports, the partnership will deliver comprehensive market guidance and capacity-building programmes.
It will also provide direct access to finance for port authorities, particularly in the Global South, where financing barriers have hindered green infrastructure deployment.
Approximately $200 billion in sustainability-linked capital remains untapped due to technical, financial, and regulatory barriers facing port authorities, according to C40 Cities.
The C40–IFC–IAPH partnership directly addresses this climate finance gap through:
- Standardised SLL frameworks that tie loan terms to ambitious sustainability KPIs, reducing transaction costs and improving investor confidence
- Technical advisory support, helping port authorities structure investment-ready projects and access a global network of development banks and commercial lenders
- Blended finance mechanisms combining concessional climate funds, development bank capital, and commercial investment to de-risk early-stage green technologies
- Capacity-building programmes, including regional workshops and Port SLL Academies, targeting Global South participants
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The projected impact will drive C40’s efforts to:
- Prepare more than 50 zero-emission port and shipping projects for investment by 2030
- Mobilise resilient and sustainable maritime infrastructure finance for at least $1 billion within three years, leveraging IFC’s mobilisation capacity
- Reduce maritime and port-related emissions in participating cities by 25–40 per cent by 2035
- Generate up to 4 million new jobs globally by 2050 through maritime decarbonisation, with significant concentration in Global South port cities
- Support the achievement of C40 Cities’ commitment to drive the creation of 50 million good, green jobs by 2030
- Facilitate equitable access to competitive infrastructure financing for IAPH member ports in the Global South and Small Island States
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The initiative builds on extensive groundwork, including comprehensive market assessments and lender outreach to 30 commercial banks, confirming strong support for standardised port SLL frameworks.
The partnership formalises the Memorandum of Understanding (MoU) signed between IFC and C40 in September 2024, moving beyond information-sharing to active co-leadership of sector-wide financial mobilisation.
The initiative will reportedly provide critical support for port authorities in the Global South, which handle more than half of seaborne exports and 60 per cent of imports, and face acute challenges, including limited fiscal space, higher perceived investment risk, and weak credit ratings that drive up borrowing costs.
The partnership’s next steps include regional workshops and capacity-building programmes, commencing in 2026.
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C40 Cities Managing Director of Climate Finance, Knowledge, and Partnerships Andrea Fernandez said: “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.
“This joint initiative delivers many wins: it de-risks commercial investments in port infrastructure and green fuels, it advances a just transition by enabling ports, particularly in the Global South, to address fiscal challenges, and also enhances technical assistance and capacity-building programmes.
“Crucially, the Global Port SLL Initiative makes a compelling case to ramp up maritime decarbonisation and accelerate climate resilience, protecting the people and places we love.”
