Unlocking Finance for Resilient Cities

The session highlights the importance of enabling subnational access to finance to accelerate climate action. The panel of American, European, and African city leaders and representatives from IDB, EBRD, C40, and Paraná's Municipal Finance System (SFM) PARANACIDADE explores innovative subnational financial approaches. These approaches, implemented in three different continents, are a testament to the collaborative efforts of Global Networks, SFMs, and Multilateral Development Banks (MDBs) in mobilizing resources for resilient and sustainable urban development. The session will raise awareness of the need to facilitate subnational finance access and enhance local capacity for project preparation to accelerate city climate action.

MDBs play a crucial role in gathering resources for sustainable urban development. An exemplary case is EBRD's subnational lending in Southeast Europe, which directly finances cities. Through programs like EBRD's Green Cities, cities receive support in designing and implementing Green City Action Plans (GCAPs), accessing loans for sustainable infrastructure, and enhancing local government capacity.  This includes initiatives like the Infrastructure Loan in Medias, Rumania, of up to EUR 7.7 million in local currency, which co-finances critical infrastructure investments alongside EU grants, aiming to promote energy savings and reduce CO2 emissions, ultimately contributing to creating resilient and inclusive cities.

Established in 1996, PARANACIDADE plays a crucial role in municipal development by providing technical assistance and financing for infrastructure and institutional development. Administering Fomento Paraná's investment portfolio, it offers essential services and infrastructure loans. PARANACIDADE also manages Paraná Urbano III, funded by the IDB, to reduce urban infrastructure deficits sustainably. Over 25 years, it facilitated 17,000 projects across all 399 municipalities of Paraná, investing R$8 billion in infrastructure, significantly advancing urban and regional development.

C40 is a network of city mayors globally, around 100 in number, dedicated to tackling the climate crisis. C40 assists mayors by boosting climate ambition, promoting equitable communities, advocating internationally, sharing best practices, and facilitating green investments for resilient cities. The C40 Cities Finance Facility announces support for Johannesburg and Mbombela in Africa by developing climate action plans to prioritize green job creation, resilience, and sustainability in African cities.

In conclusion, the panel addresses the importance of Global Networks, SFMs, and MDBs working collaboratively with subnational governments and aligning their financing strategies to promote local capacity-building and unlock access to climate finance in cities worldwide.