Financing Energy for Low-carbon Investment - Cities Advisory Facility (FELICITY)
As of: August 2020
Objective and activities
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 should now also help to mobilize sustainable climate finance and anchor GHG reduction projects in economic stimulus packages. FELICITY currently supports a total of five urban reduction projects in the infrastructure sector, three of them in Brazil (Porto Alegre, Florianópolis, Maringá) and two in Mexico (Mexico City, Naucalpan): The projects in Mexico and Brazil supported by FELICITY have an estimated investment volume of 120 million euros and an emission reduction potential of up to 1.4 million tCO2eq over 15 years. Up to December 2019, 615 employees from the supported cities and other target groups at national and regional levels took part in training courses organized by FELICITY. The national framework for sub-national climate finance was analyzed and evaluated in Mexico, Brazil and China. Five other projects in Indonesia and Ecuador are currently being identified for FELICITY support. For Brazil, the EIB has concluded a framework loan of EUR 80 million with the regional development bank BRDE (Banco Regional de Desenvolvimento do Extremo Sul) as a financial intermediary. Part of the funds is earmarked for climate-friendly investment projects in cities. The experience from this credit line is also made available to the Ministry of Energy (MME) in advice on general conditions. Videos have been created for two of the supported projects in Brazil:
The study "Climate finance for low-carbon urban infrastructure in China" is available at www.sustainable-urbanisation.org/… publications. The BMU-led initiative "Leadership for Urban Climate Investment" (LUCI) was presented by Werner Hoyer, President of the European Investment Bank (EIB), at the 2019 UN climate summit. FELICITY provided significant support to the BMU in developing the initiative. Up to EUR 73 million have already been committed for the implementation of LUCI. The majority of the funds are earmarked for the Gap Fund to support the early project development phase of climate-friendly urban infrastructure. Website FELICITY: www.eib.org/…
- Light of Knowledge: Solar power and energy efficiency in the schools of Porto Alegre - youtu.be/… --- Integrated pulic transportation network of the greater Florianópolis metropolitan region - youtu.be/…