Global banking institutions – Citigroup, Deutsche Bank AG, JPMorgan Chase & Co., UBS AG, and ABN Amro – have committed $1 billion each to finance the upgrades of municipal buildings in participating cities, which include New York, Chicago, Houston, Toronto, Mexico City, London, Berlin and Tokyo.
Cities will pay back loans, plus interest, through the energy savings that the projects achieve over several years.
Honeywell International, Johnson Controls, Siemens AG and American Standard Cos. will conduct energy audits of the buildings, complete the makeovers and guarantee the energy savings.
The other cities are Rome; Karachi, Pakistan; Seoul, South Korea; Bangkok, Thailand; Melbourne, Australia; Sao Paulo, Brazil; and Johannesburg, South Africa.
The foundation expects the partnership to expand to more cities and companies after the first round.