A white paper ‘Barriers to Private Sector Investments into Urban Climate Mitigation Projects’ produced by CCLFA members CDP and Climate KIC presents new research on improving access to climate finance for cities and offering bankable climate projects to investors.

Key findings include:

  • The huge potential that cities have when it comes to market their climate mitigation–projects due to an increasing interest from the private sector in financing climate investments
  • The four main barriers with regard to a shortage of bankable projects: capabilities gap, a perceived lack of mandate from the electorate, a lack of public and private cooperation and transaction costs calling for projects pooling and a lack of track record or low credit worthiness.

This paper highlights further the need for establishing a match-making facility for investors and cities as a solution to make capital available for cities, enable flexible financing, reduce costs and support reporting and marketing of projects. The development of this matchmaking platform is currently being supported by the Climate-KIC as part of LoCaL’s activities.