City Climate Finance Gap Fund II - EIB
Cities and municipalities are facing various challenges to develop and implement climate change projects, ranging from increasing debt and budgetary constraints to inadequate credit ratings. In addition to financial constraints, local authorities do not have sufficient human and technical capacities for planning, designing, preparing, and implementing projects. The City Climate Finance Gap Fund intends to fill this gap. It provides direct support at an early stage of project preparation to cities in low and middle-income countries that have already made commitments in line with the Paris Agreement. The Fund is expected to catalyse more than €100 million for the preparation of climate projects. This financial support aims at facilitating a pipeline of low carbon and climate-resilient infrastructure projects with a total value of at least €4 billion.
- IKI funding
- 40,000,000.00 €
- Duration
- 11/2020 till 12/2027
- Status
- open
- Implementing organisation
- European Investment Bank
- Implementing Partner
-
- Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
- Online
State of implementation/results
- The Gap Fund supports project preparation activities for low-carbon and resilient urban infrastructure in cities by pursuing the following three main objectives:
- Capacity building: to enhance the capacity of cities and municipalities on low carbon and climate resilient urban development to design quality projects and support project preparation;
- Pipeline building and technical support: to identify and prioritize climate smart urban investments and build a robust portfolio and business opportunities for organisations focused on providing technical support for subsequent project preparation; and
- Pipeline building for investors: to scale pipelines for bankable projects.
- As of January 2026, the Gap Fund has reviewed around 1,200 expressions of interest, approved 50 investment projects currently under preparation, and successfully completed 62 investment projects. In total, 138 cities have been supported by the Gap Fund (EIB).
- The Gap Fund publishes success stories on completed support initiatives on its website: www.citygapfund.org/stories
Latest Update:
04/2026
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