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Five of the world's most powerful banks have launched a US$5 billion fund to speed up energy efficiency programmes in 16 world capitals.
As a result, London, Chicago, Sao Paulo and other centres will be able to slash carbon dioxide emissions. It is hoped the project will cut the price of green technologies because the combined purchasing power of the cities will bring economies of scale.
The energy efficiency fund will make loans to 16 cities on commercial terms. Cities' repayments will come from reducing municipal energy bills by up to 30 per cent.
London Mayor Ken Livingstone has pledged to call tenders within three months for companies to refit Greater London Authority and public buildings with insulation, more efficient air conditioning and green energy capability. The bank deal was brokered by Bill Clinton, who brought together ABN Amro, Citibank, Deutsche Bank, JP Morgan and UBS.
Urban areas are responsible for about 75 per cent of energy use and greenhouse gas emissions in the world. Buildings account for nearly 40 per cent of greenhouse gas emissions, and in cities such as New York and London it is close to 70 per cent.
The programme could enable London's New Scotland Yard to undergo a green makeover. Companies such as Honeywell, Trane, Siemens and Johnson Controls have expressed interest.
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