CCFLA, FMDV and AFD jointly organised a successful Policy Lab held on  Thursday, 30 March, at AFD’s headquarters in Paris.

 

On this sunny spring day, various international stakeholders coming from financial institutions, bilateral development agencies, private banks, local and central governments, rating agencies and recognised experts gathered to share their technical experience on guarantying municipal debt. Several CCFLA members actively participated (C40, Climate Bonds Initiative, Deutsche Bank, GIB Foundation, KFW, LTIIA, UNCDF, SouthPole Group, CCAC and Climate KIC). Seeking to unlock subnational and local investments in the South, the objective of the Policy Action Lab was to open a political and technical debate on risk mitigation for municipal investment strategies and low-carbon and resilient urban projects in DCs.

 

Experts and practitioners like Barbara Samuels (Executive Director of GlobalDF), Michael Metzler (Director of Development Credit Authority, USAID) and Lydia N. Orial (CEO of LGUGC, a guarantee institutions in the Philippines) presented their analysis of the issues and suggested some approaches and models to consider and explore among them the need to adopt a transactional approach and to consider a hybrid combination of risk mitigation solutions that would need to be “open sourced”.

 

A report will be drafted as well as a suggested Roadmap proposing participants to collectively engage into data gathering, vertical integration/reinsurance and concrete transaction activities that may be undertaken under the “umbrella” of the CCFLA Derisking WG.