311017_CESMED Funding_Mechanisms_Final

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KfW’s Preparation phase corresponds to the EU’s Identification and Formulation phases. It comprises analysis, conception and on-site audit elements. The following criteria are of paramount importance in KfW’s assessment for co-financing a project: • Legal, institutional and macroeconomic conditions; • Developmental goals and indicators; • Impact on the fight against poverty, the social and cultural environment, conflicts, environmental protection and gender equality; • Economic performance capacity and management capacities of the agency executing the project; • Economic and technical appropriateness of the project; • Risks with regard to the sustainability of the project. This project is funded by the European Union and is implemented by a Human Dynamics Consortium 14
3. Financing Mechanisms for Municipalities The Cities Climate Finance Leadership Alliance (CCFLA), a global platform 5 launched by the United Nations to facilitate collaboration between public and private sector institutions committed to mobilizing investments into low-emission and climate-resilient urban infrastructure, has proposed 5 measures to improve the flow of financing for municipality sustainable development projects 6 : 1. Engage with national governments to develop a financial policy environment that encourages cities to invest in low-emission and climate-resilient infrastructure; 2. Support cities in developing frameworks to price climate externalities; 3. Develop and encourage project preparation and maximise support for mitigation and adaptation projects; 4. Collaborate with local financial institutions to develop climate finance infrastructure solutions for cities; 5. Create a lab or network of labs to identify catalytic financial instruments and pilot new funding models. Indeed, the first 3 of these measures are amongst the duties of the National Coordination Group (NCGs) who are meant to prepare for and eventually act as national Covenant of Mayors (CoM) Committees or SEAP Support Mechanisms (SSM) as proposed in the Chapters following for each of the 7 CES-MED countries. The 4 th measure is primarily directed to IFIs, encouraging these to channel their funding through local financial institutions (with government guarantees) which are more accessible to municipalities. Finally, the 5 th measure stems from the realisation of the need for providing a facilitative environment for the development of new financing mechanisms suitable for municipality sustainable development projects. The following practical financing mechanisms (forms of finance) currently available for municipality sustainable development projects in the CES-MED countries are summarised next 7 : 1. Energy performance contracting (EPC); 2. Property tax approaches; 3. Green bonds and capital markets; 4. Secondary markets; 5. Crowdfunding; 6. Public private partnerships (PPP). 3.1. Energy Performance Contracting EPC is a traditional form of packaged financing and capital works, already practiced in many countries, where financial savings from energy conservation measures are used to fund the cost of the measures. The attraction of EPC is that it allows end users (municipalities) to secure energy savings without drawing upon limited capital payments. To be successful for both parties, the EPC contract implies that the funder (contractor) has a stake in the energy savings 5 http://www.citiesclimatefinance.org/ 6 The State of City Climate Finance, CCFLA, December 2015 7 Innovating Urban Energy, World Energy Council, October 2016 This project is funded by the European Union and is implemented by a Human Dynamics Consortium 15
Page 1: The project is funded by the Europe
Page 4 and 5: Table of Contents 1. INTRODUCTION .
Page 6 and 7: List of Abbreviations and Acronyms
Page 8 and 9: NERC NGO PACE PENRA PIC PNA PPP SDI
Page 10 and 11: 2. Working with International Finan
Page 12 and 13: 4. The monitoring and evaluation sy
Page 14 and 15: 2.3. AFD AFD is the main French org
Page 18 and 19: for the end user - client, and henc
Page 20 and 21: 4. Municipality Funding Guidelines
Page 22 and 23: 8. Possible request for supplementa
Page 25 and 26: For the implementation of an energy
Page 27 and 28: savings in industrial and tourism f
Page 31 and 32: the municipality to become a signat
Page 35 and 36: sources could be international dono
Page 37 and 38: 6. Develop a promotion plan for eac
Page 39 and 40: period to the private company, whic
Page 41 and 42: allowing the municipality to become
Page 45 and 46: Morocco. The Moroccan NCG’s main
Page 47 and 48: collect and update, on a regular an
Page 49 and 50: Within the present CES-MED project
Page 51 and 52: 1. Prepare SEAP with integrated set
Page 53 and 54: with the national financing institu
Page 55 and 56: financing for this from CPSCL, the
Page 57 and 58: 1. Periodically update the integrat
Page 59 and 60: • Degree and adequacy of energy m
Page 61 and 62: Skills and expertise • Existence
Page 63 and 64: A1 A2 A3 A4 A5 Total 5Y Investment
Page 65 and 66: A.3 Climate Change Project Concept
Page 67 and 68:
espond to disasters and/or sequeste
Page 69 and 70:
Climate impact potential: Specify t
Page 71 and 72:
2.6 Evaluation and impact metrics T
Page 73:
Collective solar thermal systems (s
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311017_CESMED Funding_Mechanisms_Final

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