Masdar City’s total development budget is set at $22 billion. Of the total investment, Masdar will contribute $4 billion to develop the city’s infrastructure.

The remaining $18 billion will come through direct investments and the creation of various financial instruments to raise needed capital.

An essential driver for the development of the city is carbon finance. Carbon emissions reduced by Masdar City will be monetized under the Kyoto Protocol’s clean development mechanism.

Dr Sultan Ali Jaber, CEO of Masdar, said: We are creating a city where residents and commuters will live the highest quality of life with the lowest environmental footprint. Masdar City will become the world’s hub for future energy. By taking sustainable development and living to a new level, it will lead the world in understanding how all future cities should be built.