The NDBs Urban Climate Action (NUCA) Programme
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 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.
- 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 Foreign Affairs - 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
- Online
State of implementation/results
- The implementation phase of the project began in early 2024, following country-specific analyses and the structuring of international and national workstreams.
- Five multi-stakeholder workshops were held in each country, bringing together financial institutions, public authorities, NGOs, associations, and private sector actors to align activities with existing initiatives and national priorities.
- Initial discussions with municipalities led to the identification of a selected group with which national development banks (NDBs) will engage under the programme.
- First technical assistance activities and urban infrastructure feasibility studies are underway.
- Indonesia is leading implementation with two studies on drinking water supply (Bandung Regency) and solid waste management (Surabaya).
- PT SMI has also launched a coaching clinic and a needs assessment to strengthen in-house climate expertise and coordination.
- In South Africa, three projects have been selected for feasibility studies: the JMEG project (UK PACT), electricity generation through Dlabs, and high-mast lighting. Technical assistance will focus on training, country platforms, and water resilience bonds, starting with the arrival of consultants in April 2026.
- In Mozambique, NUCA is assessing support for a Maputo waste master plan and metropolitan transport in Greater Maputo. Technical assistance will strengthen BNI’s urban climate framework to improve access to international climate finance.
- In Colombia, technical assistance with Findeter will focus on GHG trajectories and climate indicators. Feasibility studies are under review, including a detailed assessment of solar panels in Pasto conducted in March.
Latest Update:
05/2026
Project relations
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