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CITIES CLIMATE FINANCE LEADERSHIP ALLIANCE WEBINAR
Aris Moro – Knowledge and
Partnerships Manager, C40 Cities
Finance Facility
Allison Hooks – Sustainable
Infrastructure Project Officer, CDP
October 22nd, 2018
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES
2
C40 CFF FUNDING PARTNERS
C40 CFF IMPLEMENTING PARTNERS
Partners
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
CDP MATCHMAKER FUNDING PARTNER
www.cdp.net | @CDP
CDP is the only global environmental disclosure platform
4
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
Building on previous C40, CDP and partners’ research
• Released at the Global Climate Action
Summit
• Authored by C40 CFF, CDP and in
collaboration with the Global Covenant
of Mayors for Climate and Energy
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES
6
Methodology
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
CFF PROJECTS
• 110 projects in 42 cities (28 C40)
• All eligible for ODA
• From CFF application phase in
Q1/Q2 2018
CDP PROJECTS
• 1,045 projects from 362 cities
• 518 eligible for ODA
• From CDP 2017 Cities Questionnaire
What are the projects used in this analysis?
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Overview: The projects
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
QUESTION:
What are the common characteristics
of climate-related projects for which
cities seek project preparation and
financing support?
What are the projects used in this analysis?
9
Sectors
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
Projects in the Energy & Buildings and
Transportation sectors represent the largest share of
projects in cities.
What sector do cities’ climate-related projects fall under?
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Energy & Buildings sub-sectors
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
Energy and Buildings projects in ODA cities by sub-sector
Breakdown by sub-sector
in ODA cities only
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Transportation sub-sectors
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
Transportation projects in ODA cities by sub-sector
Breakdown by sub-sector
in ODA cities only
12
Regions
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
REGIONS
Cities in Latin America and North
America reported the most projects to
the CFF and CDP (32% and 25%
respectively), compared to other
regions.
What is the geographical spread of these projects?
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Scale of capital investment
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What is the scale of capital investment of projects?
SCALE OF CAPITAL INVESTMENT
The total capital investment across all climate-
related projects submitted to the CFF and CDP is
US$57.89bn.
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Scale of capital investment
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What is the scale of investment required for these projects?
AMOUNT OF REQUIRED CAPITAL INVESTMENT
Projects requiring technical assistance are
across different scales of capital investment.
45% of projects are below US$10m and 20% of
projects are above US$100m.
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Benefits
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What are the climate benefits and co-benefits of these projects?
LONDON, OCTOBER 18TH, 2018
CLIMATE BENEFITS AND CO-BENEFITS
Improvements in air quality, the positive public
health impact of safe transport infrastructure, and
the potential for financial savings associated with
Energy & Buildings projects are the most important
policy drivers in cities for climate-related projects.
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Level of project preparation
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What is the average level of project preparation?
CompletedProject
Preparation
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
OnlyFinancialStudies
Completed
OnlyTechnicalStudies
Completed
Pilot Project(finished)
19%
17%
21%
Technical& Financial
StudiesCompleted
16%
OnlyPreliminary
Consideration
35%
LEVEL OF PROJECT PREPARATION
There are projects at all levels of preparation and
support is needed across the board, including at the
earliest stages of project development: almost a
third of both CFF and CDP projects are at a
preliminary stage or undergoing scoping.
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Other findings
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What kind of support are cities asking for to proceed to implementation?
What challenges to project implementation do cities currently face?
TYPE OF SUPPORT REQUESTED
Almost 75% of projects asked for CFF support with
respect to financing.
CHALLENGES TO IMPLEMENTATION
The most commonly cited challenge to
implementation to the CFF (30% of all projects) was
gaps in technical knowledge. However, the majority
of barriers are city- specific: e.g. institutional
coordination, stakeholder engagement, regulatory
issues, public opposition, etc.
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Recommendations
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What to make of this report?
1. THE EXISTING DEMAND SHOULD BE BOTH BOOSTED AND MET.
There are plenty of projects. More are needed. Cities and
financiers should both play a key role in encouraging the
development of climate-related projects.
2. MORE RESOURCES FOR PROJECT PREPARATION, ESPECIALLY EARLY-STAGE.
Projects are at all stages of project preparation. Resources
are needed across the cycle, including in the earliest stages
of project scoping and preliminary consideration.
3. PROJECT PREPARATION SUPPORT MUST BE TAILORED AND CONTEXTUALISED.
Projects are very different one from another, and so are
their financing needs. New instruments? More
aggregation?
4. NEED FOR ACCURATE PROJECT-LEVEL MEASUREMENT OF BENEFITS.
Standardisation and accuracy are crucial. Climate benefits
can be an important additional benefit for other urban
projects and cities can make the case for climate-related
projects by promoting them as measures to achieve their
non-climate priorities.
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Questions for discussion
THE DEMAND FOR FINANCING CLIMATE PROJECTS IN CITIES – CCFLA WEBINAR
What are we doing with this report? What happens next?
1. WHAT ARE THE REMAINING KNOWLEDGE GAPS?
2. HOW CAN WE FINANCE PROJECTS UNDER US$10M? PROJECTS UNDER US$1M?
3. HOW DO WE EFFICIENTLY DEVELOP EARLY-STAGE PROJECTS?
OTHER QUESTIONS?
Aris Moro – Knowledge and
Partnerships Manager, C40 Cities
Finance Facility
amoro@c40.org
Allison Hooks – Sustainable
Infrastructure Project Officer, CDP
allison.hooks@cdp.net
THANK YOU!
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