Cities in the Global South will have access to a further $2.3 million to mobilise financing for their climate change adaptation and mitigation projects. Support from the United States Agency for International Development (USAID) will allow the C40 Cities Finance Facility (CFF) to unlock financing for sustainable infrastructure in developing countries and emerging economies. USAID, C40 Cities Climate Leadership Group (C40), and the German Federal Ministry for Economic Cooperation and Development (BMZ) made the announcement today at the United Nations Habitat III conference in Quito.
As a mayor I can attest that access to reliable financing is one of the greatest barriers cities face when it comes to delivering sustainable infrastructure projects. The C40 Cities Finance Facility is an extremely valuable mechanism for overcoming this obstacle, and we are proud to have USAID’s involvement in the project and endorsement of our approach.
C40 mayors have been calling on national and regional governments, and international financial institutions to take action to help finance the transition to low-carbon, resilient pathways within cities. In the Call for Action on Municipal Infrastructure Finance, C40 outlined the support needed to create an environment that will enable cities to implement plans to fight climate change.
Most urban growth around the world is happening in areas that are highly vulnerable to climate risks, including storm surges, floods, heat waves and high winds. One of the major barriers for cities, when they want to build safer housing and also infrastructure for transport, water and sanitation, is a simple lack of good financing options. USAID's $2.3 million support of the CFF will help cities access financing for urban infrastructure that will be climate-resilient. People’s health and livelihoods depend on it.
Earlier this year, Bogotá and Mexico City were selected as the first two pilot projects for the CFF, each receiving $1m dedicated to technical assistance, provided by experts in urban infrastructure project preparation. USAID’s support will increase the ability of the CFF to deliver results during the pilot phase and strengthen donor interest.
The New Urban Agenda recognises the importance of financing for its implementation. We have a real opportunity to help cities build their financing capacity and deliver the sustainable and low carbon future we all wish to see. We are proud that USAID is joining BMZ as a partner of the C40 Cities Finance Facility. We look forward to working with USAID in establishing the CFF as a multi-donor platform to support cities to access finance and to implement the New Urban Agenda.
The CFF is currently funded by BMZ, and supported by the Inter-American Development Bank (IADB). Delivery of technical assistance is coordinated jointly by C40 and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. USAID’s contribution will further assist cities to access the finance they need to deliver on their low carbon and climate adaptation projects.
Read the press release here.