Also participating in the effort are the environmental groups ICLEI"Local Governments for Sustainability and the Center for Neighborhood Technology.
Microsoft said it plans to develop software that can connect with ICLEI's Harmonized Emissions Analysis Tool (HEAT) -- an online database that tracks carbon emissions from cities around the world.
A number of major, international cities, including Toronto, New York, London, and Tokyo, will receive funds from the Clinton Foundation and several private banks to renovate publicly owned buildings to cut their greenhouse gas emissions. The software will help officials in those cities plan the efforts.
"The Clinton Foundation is committed to a business-oriented approach to the problem of climate change," said Bruce Lindsey, CEO of the Clinton Foundation, in a statement.
Microsoft said it's designing the tools -- slated for availability by year's end -- to be compatible with other emissions reduction applications, allowing for the import and export of data from other systems.
Former president Bill Clinton last year launched the Clinton Climate Initiative, under which 40 of the world's largest cities agreed to work together to fight global warming. Microsoft said the new online tools will allow the cities to develop baselines and standard ways to measure their carbon emissions and compare data with each other.