Enhancing the strategic role of national development banks as drivers of low-carbon climate-resilient urban infrastructure investments in developing and emerging economies (NUCA)

Cities generate around 70% of the global greenhouse gas emissions and face various challenges for developing and funding climate-smart projects. National development banks (NDBs) are well positioned to support those projects, as they are ideally placed to de-risk or cover upfront costs, can provide local currency and can leverage locally adapted financial instruments. However, NDBs face barriers in supporting the urban sector, among which the limited capacity of Cities to develop feasibility studies and projects pipe-line coupled with the lack of favourable regulatory and institutional frameworks which limit the cities financial autonomy and planning. The NDBs Urban Climate Action Fund will address these shortcomings by developing strategic urban climate financing pipelines for cities, building capacity within NDBs and cities and working with regulators on improving framework conditions for urban climate finance by NDBs.