In the framework of its ‘advocacy for action’, FMDV joins forces with ICLEI and UNCDF, and reiterates its commitment to support Subnational Development Banks and Funds in getting the visibility and credibility required for their empowerment and performance.
Unlocking financing at the subnational level is a prerequisite to achieve the goals of the Paris Agreement, as well as to integrate local and regional efforts in the fulfillment and enhancement of countries’ Nationally Determined Contributions (NDCs).
A total USD 90,000 billion is needed by 2030 to bridge the urban infrastructure investment gap to mitigate global warming to 2°C. In spite of the efforts made regarding the availability of funds, their accessibility remains a challenge, resulting in a growing finance gap as the urgency of action also scales up.
Currently, the share of International Financial Institutions and UN climate funds in urban and local climate finance remains marginal, ranging at 10 percent, while corporate and institutional private investors provide approximately 20 percent (CCFLA Report, 2021). These results show that the majority of urban climate investments is shouldered by the households and the different levels of the government. The future of climate finance has to be multilevel, multi-stakeholder and multi-sourcing.
Building on the prominent role of cities and regions, FMDV, ICLEI and UNCDF call for action to unlock and accelerate the flow of the needed funding and financing featuring finance instruments and approaches that could play a critical role in financing climate emergency.
A special attention is given to the role of Subnational Development Banks, the pipelines of investment-ready projects, guarantees and bonds, and the implementation of Art 6.8
through the acknowledgment of integrated and sustainable urban and territorial development as a Non-Market Approaches.
The Call for Action on Climate Emergency Financing is being released during the session “The Future of Climate Finance is Subnational” held @COP27 on the LGMA Pavilion.Live streaming of the Session @COP27Download the Call to Action