Leadership for Urban Climate Investment (LUCI)

Driving Urban Climate Action by 2025

LUCI’s targets aim to raise ambition and fill gaps in the value chain of subnational climate finance by 2025:

Cities that have strengthened capacity in project preparation by 2025

Climate smart urban projects are bankable by 2025

Climate smart urban projects are linked to finance by 2025

Climate smart urban projects utilize new financing mechanisms by 2025

Leadership for Urban Climate Investment (LUCI) is a framework that elevates and tracks commitments made by Cities Climate Finance Leadership Alliance (the Alliance) member initiatives, helping them to implement bold and effective targets. The LUCI framework enables these ambitious targets by catalyzing action along the entire value chain of subnational climate finance from project conception through financing.

Hosted by the Alliance, LUCI was initiated by a multi-stakeholder coalition led by the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU) at the UN SG Climate Summit in 2019.

Alliance members have a collective goal to deploy finance for city level climate action at scale by 2030, and are working together on even more ambitious and specific targets.

The Challenge

Urban climate-smart infrastructure projects are not realized at the scale and speed required. Cities, financiers, and national governments may understand the urgency to act but their efforts often do not overlap. An effective and efficient structure is missing to support climate smart urban projects. This is where LUCI comes in.

Learn more about the challenges and opportunities of urban climate finance>>

Framework for Action 

To address these multifaceted challenges, LUCI’s four components contain multiple initiatives led by Alliance members. Each initiative mobilizes key stakeholders to build an effective and efficient framework that targets specific gaps, linking initiatives that support projects from upstream concepts to downstream finance-ready implementable infrastructure. For example, the City Climate Finance Gap Fund, under Component II is the first global fund dedicated to supporting cities in the very early stages of project development, with an aim to unlock EUR 4 billion of investment off a target EUR 100 million budget.

LUCI’s four integrated components address the core barriers to urban climate finance at scale

Progress and monitoring

Each year, initiatives are asked to report on their progress respective to LUCI targets. The Alliance presents on such progress and identifies further barriers to implementation. To reach LUCI’s ambitious targets, additional initiatives will progressively be incorporated into LUCI’s framework.

Benefits of LUCI

LUCI accelerates climate action by helping national, municipal and regional governments deliver on their climate commitments at the urban scale, helping create the green and livable cities of the future. For financial institutions, city networks, international organizations, and other key stakeholders, LUCI offers an effective framework to:

• Showcase and leverage commitments
• Collaborate and cooperate closely with other relevant initiatives
• Track the results of work in urban climate finance and infrastructure development

For more information and to get involved, please contact LUCI@citiesclimatefinance.org