The demand for energy across the globe continues to grow. Cities account for approximately two thirds of energy consumed worldwide and 70 % of the greenhouse gas emissions related to people. Energy prices have experienced nothing but growth for years now. Even in places where prices for electricity and heating appear low from a customer standpoint, subsidies actually end up footing the bill in many cases, which are in turn covered by national budgets that are funded by tax payers.

In public buildings lighting accounts for about 40% of the electricity costs. If you multiply this figure by the number of kindergartens, schools and universities, town halls, local government buildings and government departments, libraries, swimming pools and hospitals, then the total is enormous. Lighting in public buildings is currently consuming far more energy than necessary, with all the negative side-effects such as high running costs, electricity bottlenecks and damage to the climate. That can easily be changed.

This report studies the development of criteria for assessing the compatibility of financial investments with the international goal to limit global temperature increase to below 2°C above pre-industrial levels. The findings are intended as a starting point and a key input for a longer term process to develop consensus-based 2°C investing criteria. The focus here is placed on investments in projects and physical assets, in particular of development and climate finance organisations.