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

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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

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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

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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?

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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

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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!