International
Climate Initiative (IKI)

The emissions mitigation potential of sustainable energy systems in cities cannot be realised despite an increase in the supply of financial instruments. Cities and municipalities in developing countries often lack the knowledge, capacities for the development of bankable projects as well as adequate framework conditions for the fulfillment of international loan requirements. The Gesellschaft für Internationale Zusammenarbeit (GIZ) and the European Investment Bank (EIB) plan to establish an Advisory Facility at the EIB with the aim to address these challenges. FELICITY supports the implementation of mitigation measures in cities and communities by: 1. Demand-oriented consulting for cities to acquire and use funds; 2. Capacity building in local governments; 3. Policy advice at national level on framework conditions for international climate financing; 4. Knowledge management on financing mechanisms; Development of relevant instruments and methodologies (e.g. Nationally Determined Contributions/NDC). 

FELICITY currently supports a total of five urban infrastructure mitigation projects, three in Brazil (Porto Alegre, Florianópolis, Maringá) and two in Mexico (Mexico City, Naucalpan):

• The FELICITY-supported projects in Mexico and Brazil have estimated investments of 210 million euros, and an emission reduction potential of up to one million tCO2eq over 15 years.
• 557 Assisted Cities and other target groups at national and regional levels participated in FELICITY-organized training until July 2019.
• The national framework conditions for subnational climate finance were analyzed and evaluated in Mexico, Brazil and China.
• Currently five more projects in Indonesia and Latin America are identified for FELICITY support.
• For Brazil, the EIB has entered into a framework loan with the regional development bank, BRDE (Banco Regional de Desenvolvimento do Extremo Sul), as the financial intermediary, to the tune of EUR 80 million, part of which is earmarked for climate-friendly investment projects in cities. FELICITY will provide financial support to the Climate Policy Initiative (CPI) to lead the Secretariat of the Cities Climate Finance Leadership Alliance (CCFLA).