Countries have now set up a number of mechanisms to fund climate mitigation and adaptation at a national level. However, what this blended finance fund offers is the possibility to act at subnational level, whereby cities, regions and provinces can develop medium-sized infrastructure projects to contribute to the climate transition.
The fund will invest in waste optimization, renewable energy, high energy performance lighting and water and sanitation projects. Its work will enhance local contributions to national climate plans and to national contributions, in accordance with the Paris Agreement.
This project was set up by R20, an NGO representing a global alliance of cities and regions. In November 2020, it had already raised a technical Assistance Fund of 18 M $USD and a first 150 M $USD tranche of subordinated public funding from the Green Climate Fund, aimed particularly at attracting private funds.
Breakdown : 150 million dollars of public financing and 600 million dollars of private funds