1 Author name Date The role of partnerships in accessing climate finance Sarah Colenbrander East and Central African Cities Development Forum

2 Outline i)What is the landscape of climate finance? ii)Why do cities need partnerships to access the Green Climate Fund? iii)What could effective partnerships look like?

3 But first… A gentle reminder… That cities are not the problem. Nor are urban residents.

4 What is the landscape of climate finance? Total public finance by actor, (Buchner et al., 2015)

5 What is the landscape of climate finance? Total climate finance in USD billions by region, 2014 (Buchner et al., 2015)

6 What is the landscape of climate finance? Sources Financial intermediaries Economic and financial instruments Financial planning systems Users and uses

7 What is the landscape of climate finance? Sources Financial intermediaries Economic and financial instruments Financial planning systems Users and uses Financial intermediaries: Since only accredited entities may submit proposals directly to multilateral climate funds, local organisations must either achieve accreditation or work with an accredited entity.

8 What is the landscape of climate finance? Users and uses: In African cities, climate finance needs to be allocated in ways that address the underlying drivers of vulnerability: exclusion, marginalisation and inequality. Sources Financial intermediaries Economic and financial instruments Financial planning systems Users and uses

9 Shack Dwellers International (2013) Vulnerability to climate change: exposure, sensitivity and adaptive capacity

10 Uses of climate finance in cities Infrastructure systems Services Built environment Ecosystem services

11 Users of climate finance in cities “For each of the direct and indirect impacts of climate change, there are groups of urban dwellers that face higher risks”. Source: Shack Dwellers International (2013)

12 1.Legal obstacles 2.Economic requirements 3.Capacity deficits Power relations Why do cities need partnerships to access climate finance?

13 Legal obstacles: Climate finance can often only be distributed to central governments or with a sovereign guarantee. Why do cities need partnerships to access climate finance?

14 Legal obstacles: Climate finance can often only be distributed to central governments or with a sovereign guarantee. Response: The GCF and GEF are introducing new accreditation and application criteria to channel climate finance to new actors. However, they still have rigorous criteria for accreditation and project approval that partners may be more able to meet than municipal authorities. Why do cities need partnerships to access climate finance?

15 Economic obstacles Donors often display a preference for large-scale projects (>$250m), as small-scale projects are thought to have higher transaction costs. Why do cities need partnerships to access climate finance?

16 Economic obstacles Donors often display a preference for large-scale projects (>$250m), as small-scale projects are thought to have higher transaction costs. Response: Replicating a project across multiple cities can help to achieve scale in terms of both financial costs and human impacts. This requires collaboration across different cities and (often) different countries, which can be facilitated by partners. Why do cities need partnerships to access climate finance?

17 Capacity deficits Local authorities often lack the technical capacity to navigate the complex processes of climate funds, to plan an manage large-scale adaptation projects or to leverage co-financing. Why do cities need partnerships to access climate finance?

18 Capacity deficits Local authorities often lack the technical capacity to navigate the complex processes of climate funds, to plan an manage large-scale adaptation projects or to leverage co-financing. Response: Local authorities can partner with accredited organisations – civil society organisations, city networks and businesses – which can support them to secure and use climate finance effectively. Collaborating with partners can also leverage new resources including household savings, philanthropic capital and private finance. Why do cities need partnerships to access climate finance?

19 How is climate finance currently distributed?

20 What could effective partnerships look like?

21 Green Climate Fund City networks ICLEI, C40, UCLG Municipal development funds Local authorities What could effective partnerships look like?

22 Green Climate Fund Civil society networks Shack/Slum Dwellers International WIEGO Local authorities What could effective partnerships look like?

23 What could effective partnerships look like? Local authorities Legal authority to deliver services and infrastructure Technical capacities to connect local infrastructure to city-wide networks Community-based organisations Locally-specific data on informal settlements Household savings Capacity to engage and mobilise low-income communities Complementary skills

24 What could effective partnerships look like? Local authorities and community-based organisations Improve local capacities to plan, manage and deliver infrastructure projects Reduce urban poverty and vulnerability Secure international funding to do it! Common goals

25 Author name Date The role of partnerships in accessing climate finance Sarah Colenbrander East and Central African Cities Development Forum Kampala, Uganda May 2016