The objective of the support is to implement and scale the final solutions in 2019
The City Finance Lab (CFL), a joint venture between sustainability solutions provider South Pole and Climate-KIC’s low carbon city lab (LoCaL), has selected the initial winning proposals for innovative financing solutions targeting climate action projects in cities.
Following a first public call for proposals in June 2018, the five solutions have been chosen to receive tailored technical advisory until the end of the year. The objective of this support is to implement and scale the final solutions in 2019.
In the first half of 2018, the CFL conducted a pilot by supporting the city of Bologna to develop its municipal carbon market, channelling private finance from industries in the region into municipal climate mitigation and adaptation projects.
“Considering that cities generate 70 per cent of global emissions and only receive 15 per cent of global climate finance, being able to better match financing solutions and cities will help accelerate the move towards climate-resilient urban centres,” said Hans-Peter Egler, director public affairs, South Pole.
The financing solutions cover a variety of climate action themes which are:
In 2019, the CFL will share lessons learned from the supported initiatives through publicly available blueprints to encourage the replication of the piloted solutions. CFL also plans to engage in targeted capacity building activities to give cities the tools to implement these solutions.
"Cities generate 70 per cent of global emissions and only receive 15 per cent of global climate finance"
CFL’s long-term goal is to expand its activities beyond the European continent to cities in other regions, including Latin America, Asia and Africa, where access to finance for cities, reportedly, remains an even greater challenge.
“Municipal finance differs substantially from sovereign finance and commercial finance. Not only in terms of credit worthiness, scale, and citizen relationships but also the regulatory and political environment,” added Sean Lockie, director of urban transition, Climate-KIC and CFL committee member.
“This is why it was so important for us to select financing solutions that are tailored to meet the distinct needs of cities.”
The committee of the CFL is a council of municipal finance experts from the European Bank for Reconstruction and Development (EBRD), Agence France Locale, Atkins, Climate Resilience Consulting and Climate-KIC.
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