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Global Climate Action  

At the twenty-first session of the Conference of the Parties (COP 21) in Paris, it was agreed that mobilizing stronger and more ambitious climate action by all Parties and non-Party stakeholders is urgently required if the goals of the Paris Agreement are to be achieved.

In decision 1/CP.21, the commitments from all actors are recognized, including those launched through the Lima–Paris Action Agenda, as well as the urgent need to scale up the global response to climate change and support greater ambition from governments.

At COP 22 in Marrakech, a High-Level Event on Accelerating Climate Action was held to highlight outcomes from the Action Events throughout the conference and culminated with the launching of the Marrakech Partnership for Global Climate Action; a new framework to catalyse and support climate action.

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Cities and regions 5-year vision

Accelerate action to respond to climate change by 2020 and ensure sustainable future living environments for their people

List of participants will be added in due course

Objectives

The Cities Climate Finance Leadership Alliance (CCFLA) was launched during the Secretary-General’s Climate Summit in September 2014 and has rapidly grown into a broad coalition of forty-seven organizations actively working to mobilize investment into low-carbon and climate-resilient infrastructure in cities and urban areas internationally.
Throughout 2015-2016, the Alliance has established itself as a leading global platform for catalysing and accelerating action to address the city climate finance gap. Its ambition is to be the international “action community” of choice for pioneers in mobilizing investment for low-carbon, climate resilient development at subnational and cities level.
With the Secretariat now established, considerable political momentum generated during COP21, a fast growing membership actively engaging in a range of potentially high impact and value added work programmes (see work plan and working groups actions presented below). The Alliance will launched at COP 22 the mapping of CCFLA members’ initiatives related to climate finance at local and subnational level. The intended outcome of this work is to reinforce convergence of effort and cooperation between CCFLA members and other key climate finance stakeholders. It provides a qualitative overview of current activities, identifies opportunities for cooperation amongst members and « gaps » that need to be addressed in order to accelerate climate finance at subnational and local levels.
By ensuring high level political representation at key international agenda event, by representing the finance coalition of the GCAA related to territories as well as co-leading the non-state actors’ finance coalition of Climate Chance Summit, the CCFLA has also set the objective to “advocate through actions” in order to bridge the investment gap at subnational level.
Other qualitative objectives include increased cooperation, synergies and the identification of matchmaking opportunities for CCFLA members.

Roadmap and work plan

In 2016-2017 the Alliance has turned its attention to accelerating implementation through the following delivery orientated action plan, led by members and supported by the secretariat.
In delivery of the will of its Members, and leveraging their collective strengths and networks that are the primary resource and competitive advantage of the Alliance, in 2016-2017, the Alliance will focus on the three following work streams:
1. Taking Stock of the state of subnational and city climate finance (identifying the gaps, defining needs and opportunities, helping to focus and to coordinate the efforts of stakeholders, driving cooperation and “convergence”);
2. Launching Solutions to mobilise subnational and city climate finance (supporting in developing and accelerating innovative finance tools, supporting project preparation and the strengthening of specific institutions).
3. Building markets (through initiatives to accelerate and encourage transactions, such as matching project demand and supply, and strengthening the understanding of investment environments to better channel funding, creating a common culture between stakeholders for impact delivery).
Organised under these work streams, four Working Groups composed of Alliance members, with the support of the Secretariat, are undertaking the following activities.
- The Project Preparation Facility Working Group focuses on enabling implementation, supporting local, metropolitan and regional governments (LMRGs) and their partners to build capacity and to scale up planning, project preparation and financing of their projects.
The PPF Working Group identifies existing Project Preparation Facilities and raises awareness of the value of these Facilities. It works to accelerate replication and innovation and promotes greater cooperation between CCFLA members and beyond. Action Plan and Strategy will be finalised in November 2016.
- The Innovation Labs Working Groups works on identifying catalytic financial strategies and instruments, and pilot new subnational and local climate funding models, instruments, mechanisms, approaches and processes. Delivery program include : the mapping of CCFLA members activities related to financial innovations in order to create a foundation from which to accelerate collaboration, replication and scaling-up of high impact initiatives ; the organisation of a COP 22 side-event – “Innovation labs for subnational climate finance” - to showcase its achievements and provide a global view of existing complementary initiatives that aim to unlock climate finance for local and regional governments, creating opportunities for collaboration, replication and scaling-up.
- The Research and Knowledge Working Group aims to identify knowledge gaps around city climate finance to help CCFLA members redirect their operational activities towards the most effective actions. The group works on the production of the bi-annual flagship publication of the CCFLA, intended to be the vehicle for the voice of the collective intelligence of the CCFLA and its members on subnational and local climate finance. The 2017 edition of the « State of Cities Climate Finance » will provide a qualitative analysis of Climate Finance initiatives and flows and a deep-dive into the theme of integration via collaboration with national governments.
- The Derisking Facility Working Group has yet to be launched, it will engage in developing solutions to obstacles and financial bottlenecks to improve conditions for local implementation of climate resilience programs. The Secretariat is partnering CCFLA members and partners to implement a Derisking Facility project submitted to The German Federal Ministry of Environment (IKI). The aim of the project is to engage with relevant stakeholders among local and national governments as well as financial institutions (FIs), including the Green Climate Fund (GCF) to develop a guarantee instrument to improve access to finance by cities for low carbon and climate resilient investments that support implementing NDCs.

Progress

1. Alliance Work streams and Fundraising Strategy
In order to mobilize the funding that is needed for the delivery of activities and commitments, the Secretariat has produced a document which outlines the opportunities emerging in 2016-17, and the strategy and delivery plan the Alliance will pursue to build on its achievements and accelerate its impact in 2016-17.

The Alliance’s fundraising strategy is structured under three work streams :
1. Taking Stock of the state of subnational and city climate finance (identifying the gaps, defining needs and opportunities, helping to focus and to coordinate the efforts of stakeholders, driving cooperation and “convergence”);
2. Launching Solutions to mobilise subnational and city climate finance (supporting in developing and accelerating innovative finance tools, supporting project preparation and the strengthening of specific institutions).
3. Building markets (through initiatives to accelerate and encourage transactions, such as matching project demand and supply, and strengthening the understanding of investment environments to better channel funding, creating a common culture between stakeholders for impact delivery).

2. Members’ Activity Survey - Scoping report of CCFLA members
Climate KIC, FMDV and R20 have undertaken a mapping of members’ activity. This was an important initiative for the CCFLA allowing members to gain an overview of each others’ activities, helping to identify opportunities for collaboration and coordination of efforts. The main findings of the Scoping report of CCFLA members’ initiatives will serve as a basis of discussion to create the foundation from which to accelerate collaboration, replication and scaling-up of high impact initiatives undertaken on climate finance. Main results and final report will be launched at COP22.
3. 2015 State of City Climate Finance Report
The first biannual publication by the Cities Climate Finance Leadership Alliance which identifies the gap between the current levels of investment in low-emission, climate resilient urban infrastructure and the volumes required to ensure a the world is on track to keep global temperature rise below 2 degrees. The report was launched at Paris City Hall on 4th December 2015.
The report also includes analysis of major barriers to investment and solutions to address these. Firstly report suggests that national governments adopt policies and incentives that encourage cities to invest in low-emission and climate-resilient infrastructure. Second, it urges cities to adopt frameworks that put a price on carbon, such as cap-and-trade mechanisms or traffic congestion charges. Third, it recommends strengthening banks and institutions that will support cities in developing investment-worthy climate-related projects. Fourth, it suggests that international development finance be directed through local financial institutions, which are well positioned to help cities finance climate-smart infrastructure solutions. And finally, the report calls for creating an innovation network of labs for new financial instruments and funding models.
The 2017 report will probably focus on vertical integration.

4. Linking with UN Habitat III Conference on Urban development and COPs processes - Outcomes of Mexico City Conference on Urban Development (March 2016)
The CCFLA, through FMDV, convened an event on 9 March 2016 at the Sidelines of the Habitat III thematic conference on Financing Urban Development entitled, “A Green Deal for Cities and Regions Climate Finance: Partnering for Change in View of Habitat III”, aimed at showcasing the achievements and highlights of the alliance and its members in terms of knowledge stocktaking on Subnational Climate Finance streams, innovative financial mechanisms, empowerment of local and regional governments and connections with supply/investors.
The Habitat III Mexico City Declaration on Localizing Finance for Inclusive Change recognizes the CCFLA as a “major step forward in better connecting demand and supply in resilient and low-carbon local infrastructure financing”.
5. Climate Chance Summit
The CCFLA was a co-leader of the coalition on finance set up in the framework of the 2016 Climate Chance Summit in Nantes, France on 26 to 28 September. By ensuring high level political representation at key international agenda event, by representing the finance coalition of the LPAA related to territories as well as co-leading the non-state actors’ finance coalition of Climate Chance Summit, the CCFLA has also set the objective to “advocate through actions” in order to bridge the investment gap at subnational level.
CCFLA has co-organized a Finance Forum entitled “Commitment towards resilient and inclusive territories: Which strategies and mechanisms to promote?” aiming to mobilize existing alliances in favor of financing sustainable development, inclusive and resilient territories, but also to gather beyond, among the non-state actors, NGOs, civil society organizations, farmers' organizations, companies and unions, among others, to find synergies. It was an opportunity to take stock of the progress and difficulties in implementation of commitments made at the summit in Lyon and then at the COP21 in Paris, to work on the completion of the joint road map between the members of the coalition (that specifies the objectives, means of action of the coalition, as well as common issues and recommendations that it wishes to bring to the Habitat III and COP 22).

Quantitative Impact

Adaptation

The need to support and empower local and subnational governments in identifying and preparing high-quality climate change adaptation and mitigation projects is being addressed by CCFLA members. More than half of the reported initiatives of the 2016 CCFLA scoping report develop and/or encourage project preparation and maximize support for mitigation and adaptation projects.
Strategy planning, access to and management of information and more generally capacity building are recognised as the key stages for effective and sustainable climate change mitigation and adaptation strategies. As such, many initiatives are focusing on establishing or reinforcing these steps to set the ground for the implementation of long lasting, more adapted infrastructures. However, mitigation potential of such initiatives is difficult to estimate because they differ with cities context and could embrace a large diversity of sectors such as transport, retrofitting of buildings, etc. Furthermore, the adaptation-related projects such as increasing resilience of infrastructures might not reduce GHG emissions. It is therefore difficult to estimate the main GHGs that will be reduced.

Finance

Ibid as previous section.

Contact

Umbrella for cities organisations

lucie.guillet@cop21.gouv.fr; sophie.vieillefont@cop21.gouv.fr; extra: vincent.delporte@developpement-durable.gouv.fr

http://www.un.org/climatechange/summit/wp-content/uploads/sites/2/2014/07/CITIES-Cities-Climate-Finance-Leadership-Alliance.pdf