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Financing Energy for Low-carbon Investment - Cities Advisory Facility (FELICITY)

As of: August 2021

The emissions mitigation potential of sustainable energy systems in cities and municipalities still cannot be realised, despite an increase in the supply of financial instruments. Cities and municipalities often lack the relevant knowledge, the capacities for the development of projects that are eligible for funding and adequate framework conditions for the fulfillment of international loan requirements. The Gesellschaft für Internationale Zusammenarbeit (GIZ) and the European Investment Bank (EIB) are establishing an advisory facility at the EIB to address these challenges. The project advises cities and municipalities on how to apply for and use funding, supports capacity building in local administrations and advises policymakers on international climate financing at national level. It also promotes knowledge management for financing mechanisms and the further development of instruments and methods such as the NDCs (nationally determined contributions. The project is part of the IKI Corona Response Package.

State of implementation/results

  • Due to COVID-19, there is increased interest in strategic climate-friendly infrastructure development and international funding. FELICITY contributes to mobilizing sustainable climate finance, establishing knowledge products and standards, and mainstreaming mitigation projects into financial products and economic stimulus programs.
  • FELICITY supports ten urban mitigation projects in Brazil (Porto Alegre, Florianópolis, Maringá), Mexico (Mexico City, Naucalpan), Indonesia (Batam, Makassar), and Ecuador (Antonio Ante, Atacames, Jipijapa).
  • The ten projects are estimated to have an investment volume of 317 million euros, and an emission reduction potential of up to 2.0 million tCO2eq over 15 years.
  • More than 3000 people from different governmental levels have participated in trainings organized by FELICITY by 12/2020. - In Mexico, FELICITY conducted virtual trainings with the Cities Climate Finance Leadership Alliance (CCFLA) to prepare climate-friendly investment projects, with more than 2000 people participating (www.international-climate-initiative.com/…).
  • The waste management project in Naucalpan (youtu.be/…) was included in the National Investment Plan for Economic Reconstruction. The national infrastructure fund FONADIN has pledged a grant of 30% of the project volume ($15.5 million) (www.proyectosmexico.gob.mx/…).
  • In Brazil, more than 85 cities participated in online trainings on the use of the Manual for the Development of Solar and Energy Efficiency Projects in Public Buildings, developed with the Brazilian Ministry of Mines and Energy building on FELICITY's experience in Porto Alegre. Ten cities are already developing related projects using the new standards (youtu.be/…).
  • Porto Alegre presented the project supported by FELICITY at the Daring Cities Conference 2020.
  • In Ecuador, the cooperation with Atacames, Antonio Ante and Jipijapa was officially launched in 01/2021 to prepare investments in high quality wastewater systems.
  • The Leadership for Urban Climate Investment (LUCI) initiative, launched by BMU, has been led by the Cities Climate Finance Leadership Alliance (CCFLA) since 05/2020.
  • The City Climate Finance Gap Fund, a key initiative under LUCI, was officially launched at Climate Week on Sept. 23, 2020. The Gap Fund supports developing and emerging economies in preparing for climate-friendly infrastructure investments (www.bmu.de/…).
  • CCFLA launched a digital overview of various project preparation facilities at the 2020 Daring Cities Conference (www.citiesclimatefinance.org/…).
  • CCFLA worked with FELICITY and other members (ICLEI, CFF, CDP, SIF-SOURCE, Gap Fund) to develop a standardized application form for cities that compiles necessary information for project implementation (www.citiesclimatefinance.org/…).
  • In collaboration with CCFLA, FELICITY published papers on the role of national development banks for low-carbon infrastructure development in cities and on green recovery in cities.
  • FELICITY website: www.eib.org/…

Project data

Country:
Brazil, China, Ecuador, Indonesia, Mexico

Implementing organisation:
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Political partner(s):
  • Development Bank of Ecuador B.P. (BDE)
  • Ministry of Mines and Energy (MME) – Brazil
  • Secretariat of Finance and Public Credit (SHCP) - Mexico
  • State Ministry of National Development Planning (BAPPENAS) - Indonesia

Implementing partner(s):
  • European Investment Bank

BMU grant:
13.000.000,00 €

Duration:
03/2017  till  06/2022


Website(s):



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