The City Climate Finance Gap Fund helps cities achieve their climate goals
70% of global carbon dioxide emissions are produced by cities, which are home to 60% of the world's population. Cities are the engines of the global economy, generating 80% of the global economy.
In order to enable cities to meet their ambitious climate goals, such as the Paris Agreement, and become more environmentally and economically sustainable as a result, the City Climate Finance Gap Fund was established in 2020.
Why this Fund?
It helps cities, especially in developing countries, with adaptation and mitigation to the effects of climate change.
How does it work?
Cities are supported through early-stage technical assistance in the development of climate change mitigation and adaptation projects.
Who is implementing it?
This is a multi-stakeholder initiative supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the Federal Ministry for Economic Cooperation and Development (BMZ), and the Luxembourg Ministry of Environment, Climate and Sustainable Development. Other partners include the Global Covenant of Mayors (GCoM) and city associations, including Local Governments for Sustainable Development (ICLEI) and the C40 Cities Climate Leadership Group. The Gap Fund is implemented by the World Bank (WB) and the European Investment Bank (EIB) in partnership with the German Development Cooperation (GIZ).
How to get involved?
Cities and local governments can check their eligibility and apply on the Fund's website by expressing their interest.
Support is provided in the following areas:
- Development of urban strategies, project assessment and potential of existing climate plans, strategies and investment programmes.
- Building the city's capacity to utilise its low-carbon potential and resilience to climate change.
- Prioritising investment projects/ideas that are part of the city's climate strategy or investment programme.
- Development of conceptual ideas and individual components of feasibility studies for their feasibility.
- Filling gaps in the preparation of investment projects.
Over the three years of the Fund's operation, support has been approved for more than 180 cities around the world. 18 countries from Eastern Europe and Central Asia are eligible to participate in the Gap Fund programme: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Georgia, Kazakhstan, Kyrgyzstan, Kosovo, North Macedonia, Moldova, Montenegro, Serbia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
In Ukraine, the Gap Fund is supporting climate change adaptation measures along the Southern Bug River in Vinnytsia, such as new green space along the waterfront, beach development to improve river transport, and the construction of a new bridge to improve pedestrian routes north and south of the city. The Gap Fund is also developing a pre-investment greenhouse gas emissions inventory and identifying key sectoral priorities for decarbonising Poltava. In Lviv, feasibility studies are being conducted in five selected districts to increase climate-friendly mobility (pedestrian accessibility, use of public transport and cycling) while improving road safety.
A brochure on the Fund's work is available on our website here.
To apply for participation in the Fund, please follow this link.