Bridging the Gap - Unlocking Finance for Local Climate Projects

The climate crisis is being discussed in the public as never before. Institutions are increasingly prioritizing the climate crisis, formulating policies and implementing practices aimed at reducing the impact of this process or adapting to existing effects. Despite these efforts, IPCC reports paint a bleak picture of the crisis, indicating challenges in meeting global goals like those outlined in the Paris Agreement and the 2030 Agenda. Therefore, there is a need to increase efforts to address the climate crisis. Although local governments are given little responsibility in global agendas, they are portrayed as critical actors in international discussions and reports, capable of exposing all dimensions of this crisis at the local level, developing policies for problematic areas, and implementing projects to carry out these policies. Being the closest institutions to local communities, municipalities are highly valuable. However, disparities exist in climate project development, both between Global South and North municipalities and within countries. While some municipalities can develop more innovative and effective projects, others may struggle to execute initiatives. There could be several reasons for these disparities among local governments, including bureaucratic issues or insufficient capacity. Lack of financial resources may also lead projects not to be implemented. In response to this situation, some international organizations have developed financial mechanisms to support municipalities. Yet, there still appears to be a gap in accessing these financial mechanisms among municipalities. Larger municipalities with greater expertise often fare better, leaving smaller or disadvantaged ones behind. Initiatives such as the Climate Cities Gap Fund offer technical support; however, the challenge of accessing finance for climate-focused projects remains unresolved.

This session is designed to address the issue of accessing finance for projects aimed at tackling climate change by bringing together representatives of financial institutions, local governments, and the associations they are involved in to discuss this problem from the perspectives of different sectors and to brainstorm on how to overcome these challenges. Moderated by the Marmara Municipalities Union (MMU), the session will feature representatives from ICLEI representing thousands of local governments across the world who are at the forefront of climate action and advocate for financial instruments that are accessible and meet their specific needs, EBRD, Climate Cities Gap Fund, ICLEI, CCFLA, and a municipality with a project previously financed by an international donor as speakers. Designed as a networking event, small surveys will be conducted during the session to gather participants' opinions and enhance interaction between participants and speakers. Additionally, after the session, participants will be invited to the MMU stand at WUF12 to continue exchanging information.