FP086

Green Cities Facility

Green Cities Facility

Enabling the transition of cities to low-carbon, climate-resilient urban development.

Urban areas account for approximately 70 percent of the global energy consumption and about 75 percent of emissions due to the density of infrastructure and their often path-dependent development patterns. While this makes cities vulnerable to the impacts of climate change, cities can also play an important role in taking on climate change mitigation and adaptation actions.

Green Cities minimise environmental impact and maximise opportunities to improve and support the natural environment. Green Cities are energy efficient and reduce reliance on non-renewable energy sources, actively encourage waste reduction and management, include green and resilient infrastructure, low carbon transport, water cycle management and deliver improved quality of life outcomes for residents.

There is not a uniform definition ‘Green City’. However, there are several central themes that help to shape and define what a Green City is. Such themes include energy efficiency (including built form) and reducing reliance non-renewable energy sources, sustainable and low carbon transportation systems, green, resilient infrastructure, waste reduction and management, increased green areas, water cycle management and integrated planning. How a city develops as green varies across geography, sector and pace at which it occurs. Decisions taken by city leaders on where, what and how investment will be directed to support green development needs to be considered adopting a system-based approach. A system-based approach recognises the interconnectedness of sectors and the importance of sequencing. It also recognises that cities will evolve to different levels of ‘green’ at different rates and that this development is not uniform.

Hence, transitioning to a path of low-carbon development can be challenging as municipalities face financial constraints for funding sustainable urban infrastructure. Under this project, 10 cities which have higher than average energy and carbon density, and are facing a range of environmental and social issues, will have access to a Green Cities Facility. The Facility will help address the cities’ climate change challenges while building the market case for private sector investments in sustainable infrastructure. It will provide concessional financial instruments that will allow ambitious investments in climate-resilient urban infrastructure such as district heating/cooling, low-carbon buildings, and solid waste management. 

The project has an estimated lifespan of 23 years.

Total project value

 

Tonnes of emissions avoided

 

Beneficiaries

 

Direct
7,900,000
Indirect
15,331,000
Theme

Cross-cutting

Result areas

Project timeline

Pipeline

04 Mar 2016 - 961 days

Concept note received

04 Mar 2016

Funding proposal received

26 Feb 2018

Cleared by GCF Secretariat

27 Apr 2018

Cleared by iTAP

08 Jun 2018

Approved

20 Oct 2018 - 334 days

Approved by GCF Board

20 Oct 2018

Legal opinion on AE's Internal Approval

31 Jan 2019

FAA executed

02 Jul 2019

Under implementation

18 Sep 2019 - 158 days so far

FAA effective

18 Sep 2019

Disbursement - USD 6,063,947

29 Nov 2019

Completed

18 Sep 2034 - 5,323 days to go

Three regions

  • Eastern Europe
  • Asia-Pacific
  • Africa

Nine countries

One priority group

  • African States
USD  
  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing1% disbursed

InstrumentAmount
LoanUSD 71,664,829
GrantUSD 24,255,788

Cofinancing

CofinancerInstrumentAmount
Co-FinancingLoanUSD 385,887,541
Co-FinancingGrantUSD 28,665,931
Co-FinancingLoanUSD 8,820,286
Co-FinancingOtherUSD 66,152,149

GCF Project Team

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GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155
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News + Stories

GCF invests USD 99 million in EBRD Green Cities Facility to reduce urban climate impacts

03 Jul 2019 / The Green Climate Fund (GCF) took a major step forward today to help make redesigned cities drivers of climate action with the signing of an agreement with funding partner EBRD. Cities have a vital role in achieving the Paris Agreement to keep temperature rises below 2C with a goal to limit warming below 1.5C as they account for 70 percent of global energy use and 75 percent of greenhouse gas emissions.