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.
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.
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
LUCI Initiatives are leading action on the ground, working towards urban climate finance and climate smart infrastructure at scale.
The City Climate Finance Gap Fund
addresses the critical lack of grant funding necessary to mature project pipelines from concepts to a stage where they can be advanced towards full feasibility analysis and investment.
FELICITY Global & FELICITY II
assist cities and municipalities to build their capacities to prepare and implement low-carbon infrastructure projects – predominantly support in accessing international climate finance & EIB.
World Bank Cities Resilience Program (CRP)
catalyzes a shift to longer term, more comprehensive, multi-disciplinary packages of technical and financial services, building the pipeline for viable projects at the city level that, in turn, build resilience.
Climate Investment Funds (CIF) Climate Smart Urbanization
test and implement new urban development investment approaches that harness both strategic urban planning as well as scaled-up financing solutions to reduce barriers to urban climate action.
ICLEI Transformative Action Program (TAP)
catalyzes and improves capital flows to cities, towns and regions and strengthens their capacity to access climate.
Sustainable Infrastructure Foundation (SIF) SOURCE
acts as a coordination instrument for the management of information and documents related to infrastructure project development.
Global Infrastructure Facility (GIF) Transaction Advisory and Downstream Finance Windows
providing support for project definition, preparation, and investment feasibility and provides an additional pathway for provision of blended finance solutions at the city-level, transaction phase.
R20 Subnational Climate Finance Initiative (SNCF)
the first private equity fund to feature a Technical Assistance Facility that provides local government capacity building and certifies all projects for SDG impact prior to investment.
C40 Cities Finance Facility (CFF)
facilitates access to finance for climate change mitigation and resilience projects in urban areas by providing technical assistance.
advances implementation of sustainable infrastructure projects through project disclosure, stakeholder consultation, and capacity building.
FMDV Global Alliance for Subnational Development Banks
position SDBs as key players in the debates on financial intermediation for local and regional governments and overall climate finance governance.
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