Financing Energy for Low-carbon Investment - Cities Advisory Facility (FELICITY)
As of: July 2019
Objective and activities
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).
State of implementation/results
On 14. November 2018 the EIB presented FELICITY at its conference "Tackling global challenges together: economic resilience, climate action and innovation" in Luxembourg.
- At the Global Climate Action Summit in California (12-14 September 2018), FELICITY was presented as one of the relevant projects in the field of urban infrastructure and is listed in the Joint Statement of the Supporting Institutions of Climate Action in Financial Institutions Initiative.
- FELICITY supports the Brazilian regional bank BRDE with regard to a long-term climate-friendly orientation of the financing portfolio for urban infrastructure projects. In the meantime, the EIB has signed a framework loan of EUR 80 million with BRDE as financial intermediary. Part of the loan is earmarked for climate-friendly urban investment projects.