Enhancing the strategic role of national development banks as drivers of low-carbon climate-resilient urban infrastructure investments in developing and emerging economies (NUCA)

Cities generate around 70% of the global greenhouse gas emissions and face various challenges for developing and funding climate-smart projects. National development banks (NDBs) are well positioned to support those projects, as they are ideally placed to de-risk or cover upfront costs, can provide local currency and can leverage locally adapted financial instruments. However, NDBs face barriers in supporting the urban sector, among which the limited capacity of Cities to develop feasibility studies and projects pipe-line coupled with the lack of favourable regulatory and institutional frameworks which limit the cities financial autonomy and planning. The NUCA Programme will address these shortcomings by developing strategic urban climate financing pipelines for cities supported by appropriate financial products, building capacity within NDBs and cities, and working with regulators on improving framework conditions for urban climate finance by NDBs and mobilizing private sector.

Project data

Countries
Brazil, Colombia, Indonesia, Mozambique, South Africa
IKI funding
19,968,470.00 €
Duration
11/2022 till 12/2028
Status
open
Implementing organisation
AFD - Agence Française de Développement
Political Partner
  • Department of Forestry, Fisheries and the Environment (DFFE) - South Africa
  • Financial Superintendency of Colombia
  • Ministry of Finance - Indonesia
  • Ministry of Integration and Regional Development (MIDR) - Brazil
  • Ministry of Land and Environment - Mozambique
Implementing Partner
  • Brazilian Development Bank
  • C40 Cities Climate Leadership Group
  • Development Bank of Latin America (CAF) - Latin America
  • Development Bank of Southern Africa (DBSA)
  • PT Sarana Multi Infrastruktur
  • The Eastern and Southern Africa Trade and Development Bank

State of implementation/results

  • Starting from a review of existing documents and information and exchanges with identified potentially synergic projects, the preparation phase of the project will cover the following activities:
    • Initial market research and preparation of country missions.
    • Implementation of country missions, including inception workshops and interviews with national stakeholders.
    • Preparation and validation of country studies.
    • Preparation and submission of the draft full proposal for the implementation phase.
  • After the preparation phase, a decision is made on further funding by the International Climate Initiative.

Latest Update:
02/2024

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