The World Bank, the European Investment Bank and the Global Covenant of Mayors together with the governments of Germany and Luxembourg have launched the City Climate Finance Gap Fund to help developing and emerging economies finance climate-smart urban projects, paving the way for low-carbon, resilient and livable cities.
With a target capitalization of at least €100 million, the Gap Fund aims to unlock at least €4 billion of final investment in urban climate innovation. According to a press release, it will offer technical and advisory services to assist local leaders prioritize and prepare climate-smart investments and programs at an early stage in an effort to ensure high-quality, bankable projects.
Until now, many cities in developing and emerging economies have lacked the capacity, finance and support needed for the early stages of project preparation, which in turn has led to impasses where cities cannot move project ideas to late-stage preparation and implementation.
“Cities are important arenas for finding and implementing solutions for the climate crisis,” said Frans Timmermans, Co-Chair of the Global Covenant of Mayors. “To tackle climate change, we must invest in local solutions and urban infrastructure that can accelerate the transition to a clean economy. The Gap Fund will assist cities across the world to turn plans to reduce emissions and eliminate pollution into reality for their citizens.”
