Funding

Financing opportunities for Sustainable Energy & Climate Action Plans

Access to financing is key for transforming ambitious Sustainable Energy Access and Climate Action Plans into projects. Climate finance will facilitate investments and help enable beneficiaries to better access finance mechanisms, leading to the implementation of concrete and sustainable actions at national and local level.

The funding page supports the Covenant of Mayors for the Mediterranean community with clear and practical information on funding and financing opportunities.

The funding guide gathers information on the funding initiatives managed by key financial institutions in the Mediterranean region and the European Union. Next to these, the guide includes information about support services and innovative financing schemes.

The useful links section collects the most relevant financing publications for the Covenant of Mayors for the Mediterranean community including best cases examples and lessons learnt.

Investment projects in the area of climate and energy for cities show many similarities in principles and models with other (more traditional) investment projects. Understanding these aspects would be an important step for local authorities who will have to decide the most effective approach to implement the actions contained in their SEACAP(s).

Interactive funding guide

Financing models’ instruments

Multilateral financing mechanisms and funds

Development agencies

Banks

Cooperative Models
Cooperative Models

REScoops are examples of cooperative models. REScoop is short for Renewable Energy Sources Cooperative. REScoops are citizen-led initiatives that develop projects for renewable energy and/or energy efficiency, sell renewable energy or provide services to new initiatives. The term REScoops does not just refer to cooperatives in the legal sense, it also encompasses community energy initiatives under any other legal statute.
GEEREF
GEEREF

Advised by the European Investment Bank Group, GEEREF is an innovative Fund-of-Funds catalysing private sector capital into clean energy projects in developing countries and economies in transition. (https://geeref.com)

https://geeref.com/
ADA
Austrian Development Agency

Finance from the Austrian Development Agency (ADA) is available in the following cases: Projects/programmes under country and regional strategies, civil-society engagement, private sector & development, humanitarian aid. (http://www.entwicklung.at/en/ada/funding/)

http://www.entwicklung.at/en/ada/funding/
Citi
Citigroup Foundation

Citibank N.A Lebanon has evolved into an active corporate citizen with a particular interest in supporting financial education, inclusive finance and capacity building through various grants provided annually through the Citi Foundation. Citibank operates as a branch of Citibank N.A. and is regulated by the Central Bank of Lebanon. (https://www.citigroup.com/citi/about/countries-and-jurisdictions/lebanon.html)

https://www.citigroup.com/citi/about/countries-and-jurisdictions/lebanon.html

Crowdfunding
Crowdfunding

Crowdfunding is an emerging alternative source of financing. It refers to open calls to the public, generally via the internet, to finance a project through either a donation, a monetary contribution in exchange for a reward, product pre-ordering, lending, or investment.
GEF
Global Environment Facility

The Global Environment Facility (GEF) was established on the eve of the Rio Earth Summit in 1992 and supports action on sustainable development. The GEF provides support for adaptation and mitigation as well as capacity building (through, for example, funding for National Capacity Self Assessments) and the transfer of technologies. It houses the Least Developed Countries Fund (LDCF), the Special Climate Change Fund and the GEF Small Grants Programme.
AFD
Agence Française de Développement

The Agence Française de Développement (AFD) Group funds, supports and accelerates the transition to a fairer and more sustainable world. Focusing on climate, biodiversity, peace, education, urban development, health and governance, our teams carry out more than 4,000 projects in France’s overseas departments and territories and another 115 countries. In this way, we contribute to the commitment of France and French people to support the Sustainable Development Goals (SDGs). (https://www.afd.fr/en)

https://www.afd.fr/en
Development Bank of Austria
Development Bank of Austria

The Development Bank of Austria finances investments of private companies in developing countries and emerging markets. They provide loans at near-market conditions, provide capital and increase the developmental effectiveness of our projects with related programs (https://www.oe-eb.at/en/)

https://www.oe-eb.at/en/

Grant Programs
Grant Programs

Investment grants or interest rate subsidies are often provided by governments to support the upfront cost of energy efficiency projects that may entail too high investment costs and long amortisation periods. Public grant programmes are used in order to support energy efficiency projects that contribute to energy and social policies and meet other public policy goals.

https://www.norad.no/en/front/about-norad/five-main-tasks/
ICF
International Climate Fund

The International Climate Fund (ICF) is the UK government’s commitment to developing countries to help them address the challenges presented by climate change and benefit from the opportunities. (https://www.gov.uk/guidance/international-climate-finance)

https://www.gov.uk/guidance/international-climate-finance
ENABLE
Belgian Development Agency

The Belgian Development Agency (ENABLE) is a European player enhancing the impact of Belgium in international development. As a knowledge center, it thinks and acts in terms of strategy and policy influence to promote sustainable development. (https://www.enabel.be/content/about-enabel)

https://www.enabel.be/content/about-enabel
IFC
International Finance Corporation

The International Finance Corporation (IFC), a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. IFC is helping change that by supporting the Middle East and North Africa region’s private sector, a potentially bountiful source of jobs and innovation. (https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/about+ifc_new)

https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/about+ifc_new

PPPs
Public-private partnerships

Public-private partnerships (PPPs) involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers.
LDCF
Least Developed Countries Fund

The Least Developed Countries Fund (LDCF) supports adaptation activities in LDCs only and delivery of funds is via an implementing agency (UNEP, UNDP).

(UNEP, UNDP)
GIZ
Gesellschaft für Internationale Zusammenarbeit

Gesellschaft für Internationale Zusammenarbeit (GIZ) works in thematically diverse projects and programmes in widely different countries throughout the world. Its goal is to develop sustainable and effective tailor-made solutions to challenging problems for the clients. (https://www.giz.de/en/worldwide/370.html)

https://www.giz.de/en/worldwide/370.html
KfW Development Bank
KfW Development Bank

KfW has been helping the German Federal Government to achieve its goals in development policy and international development cooperation for more than 50 years. On behalf of the German Federal Government, and the Federal Ministry for Economic Cooperation and Development (BMZ), it finances and supports programmes and projects that mainly involve public sector players in developing countries and emerging economies – from their conception and execution to monitoring their success. (https://www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/)

https://www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/

Revolving Funds
Revolving Funds

They are intended to establish sustainable financing for a set of investment projects and may include loans or grants and have the ambition of becoming self- sustainable after their first capitalisation. They can be established as a bank account of the owner or as a separate legal entity.
NEFCO Carbon Fund
NEFCO Carbon Fund

NEFCO channels grants with favorable terms for projects that have a positive impact on the environment. The Arctic Council Project Support Instrument (PSI) is a financial initiative focusing on projects approved by the Arctic Council to prevent and reduce pollution of the Arctic. It uses a broad range of funding arrangements to include grants and revolving instruments such as leveraging loans. (https://www.nefco.org/fund-mobilisation/)

https://www.nefco.org/fund-mobilisation/
IECD
Institut européen de coopération et de développement

Institut européen de coopération et de développement (IECD) creates environments conducive to the development of each person, and necessary conditions to allow those willing to do so to act on a social, professional and institutional level. By acquiring the necessary know-how, they will be able to transform their existence and to become responsible actors in their country. IECD believes that in this manner, they will have a positive impact on society and contribute to it becoming more equitable. (https://www.iecd.org/en/zones-dintervention/middle-east-north-africa/lebanon/)

https://www.iecd.org/en/zones-dintervention/middle-east-north-africa/lebanon/
The World Bank
The World Bank

The World Bank: Since 1947, the World Bank has funded over 12,000 development projects, via traditional loans, interest-free credits, and grants. (https://www.worldbank.org/)

https://www.worldbank.org/

Third-party Financing
Third-party Financing

It is solely debt financing where the project financing comes from a third party, usually a financial institution or other investor, or the ESCO, which is not the user or customer.
PPIAF
Public – Private Infrastructure Advisory Facility

The Public – Private Infrastructure Advisory Facility (PPIAF) is a multi-donor technical assistance facility that is financed by 15 multilateral and bilateral donors. Their primary objective is to help our clients build and strengthen institutions, develop capacity, and increase creditworthiness. Created in 1999 as a joint initiative of the governments of Japan and the United Kingdom, working closely with and housed inside the World Bank, PPIAF is a catalyst for increasing private sector participation in emerging markets.(https://ppiaf.org/about-us )

https://ppiaf.org/about-us
SDC
Swiss Agency for Development and Cooperation

The Swiss Agency for Development and Cooperation (SDC) is the agency for international cooperation of the Federal Department of Foreign Affairs (FDFA). The SDC is responsible for the overall coordination with other federal authorities of development and cooperation with Eastern Europe as well as for humanitarian aid delivered by the Swiss Confederation. (https://www.eda.admin.ch/deza/en/home/sdc/portrait.html)

https://www.eda.admin.ch/deza/en/home/sdc/portrait.html
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Green Bonds
Green Bonds

Bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are issued by companies, municipalities, states and sovereign governments to raise money and finance their projects and activities. Green bonds are all those instruments which are used exclusively to fund qualifying green investments.
The Adaptation Fund
The Adaptation Fund

The Fund addresses communities in developing countries adapt to climate change. Initiatives are based on country needs, views and priorities and access can be via the direct access modality or an implementing agency. (https://www.adaptation-fund.org)

https://www.adaptation-fund.org
SIDA
Swedish International Development Cooperation Agency

Swedish International Development Cooperation Agency (SIDA) is Sweden’s government agency for development cooperation. Through cooperation with civil society, multilateral organisations, public agencies and the private sector we work for sustainable development and help create conditions for people living in poverty and oppression to improve their living conditions. (https://www.sida.se/en)

https://www.sida.se/en
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AFESD
Arab Fund for Economic and Social Development

Based in the State of Kuwait, the Arab Fund for Economic and Social Development (AFESD) is an Arab regional financial institution focused on funding economic and social development by financing public and private investment projects and providing grants and expertise. The Arab Fund's activities are characterized by a number of important aspects that make it a model of cooperation and Arab economic integration, and a reflection of outstanding joint Arab action. (http://www.arabfund.org/Default.aspx?pageId=1&mid=20)

http://www.arabfund.org/Default.aspx?pageId=1&mid=20
UNDP
United Nations Developement Programme

The United Nations Developement Programme (UNDP) advocates for change and connects countries to knowledge, experience and resources to help people build a better life. It provides expert advice, training, and grants support to developing countries, with increasing emphasis on assistance to the least developed countries. (https://www.lb.undp.org/content/lebanon/en/home/about-us/funding-and-delivery.html)

https://www.lb.undp.org/content/lebanon/en/home/about-us/funding-and-delivery.html
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SGP
GEF Small Grants Programme

The GEF Small Grants Programme (SGP) implemented by the UNDP: The SGP provides financial and technical support to communities and Civil Society Organizations to meet the overall objective of global environmental benefits secured through community-based initiatives. (https://sgp.undp.org)

https://sgp.undp.org
UNEP
United Nations Environment Programme

The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment. (http://www.unep.org/)

http://www.unep.org/
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The Kuwait Fund
The Kuwait Fund

The object of the Fund is to assist Arab and other developing countries in developing their economies. The Fund's operations are focused primarily on the sectors of agriculture and irrigation, transport and communications, energy, industry, water and sewage. (https://www.kuwait-fund.org/en/web/kfund/general-information)

https://www.kuwait-fund.org/en/web/kfund/general-information
UNIDO
United Nations Industrial Organization

The United Nations Industrial Organization (UNIDO) is a specialized agency in the United Nations system, headquartered in Vienna, Austria. The Organization's primary objective is the promotion and acceleration of industrial development in developing countries and countries with economies in transition and the promotion of international industrial cooperation. (http://www.unido.org/who-we-are/unido-in-brief.html)

http://www.unido.org/who-we-are/unido-in-brief.html
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USAID
The U.S. Agency for International Development

The world's premier international development agency and a catalytic actor driving development results. The U.S. Agency for International Development (USAID) provides money in aid to support development in countries around the world. (https://www.usaid.gov/)

https://www.usaid.gov/
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Useful links

Key publications including best practices from the Covenant of Mayors for the Mediterranean community, lessons learnt and useful reports from the main EU institutions are collected in this section.

€1 TRILLION FOR <1.5°C - Climate And Environmental Ambitions Of The European Investment Bank Group