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 often 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 City Climate Finance Gap Fund is expected to mobilize 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.

Project data

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: https://www.citygapfund.org/

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State of implementation/results

From inception in September 2021 to December 2023, the Gap Fund received 463 expressions of interest and approved technical assistance for 147 cities in 44developing countries and emerging economies.
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.
In 2024, the Gap Fund envisions a significant increase in the number of initiatives to support low carbon and climate resilient urban development, including efforts to increase its number of technical assistance and continue working with partners to disseminate the results and achievements of the technical assistance completed.
From inception to December 2023, the Gap Fund has produced 12 technical notes and organized 23 in person and virtual knowledge exchange events, in 2024 it will continue to develop technical notes based on needs and demands identified through the technical assistance provided, and it will continue working with partners to promote knowledge exchange between cities on climate smart urban development.
In 2024, the Gap Fund will continue to support the identification of financing sources for the TA completed that could provide support for later stages of project implementation. This will involve increasing coordination with partners, and case by case discussions with a wide range of project preparation facilities.
The Gap Fund publishes successful stories on completed support initiatives like in Pristina on its website: www.citygapfund.org/…

Latest Update:
04/2024