SESSION DESCRIPTION
FINANCE FORUM
D5
What can local financing bring to funding
mechanisms for adaptation?
Panel discussion
Date: Tuesday, 9 June 2015
Time: 14:30-16:00
Rooms: S30-32
Language:
Contact:
E-mail/web:
Organized by:
English
Sabrina Archambault
[email protected]
Agence Française de Développement
(AFD)
OBJECTIVE
The session demonstrated the relevance and role of local and national financial institutions’ dedicated
funds as direct or indirect providers to finance municipalities’ climate-resilient investments. The session
firstly provided an overview on the main funding mechanisms that cities can mobilize to finance their
adaptation projects. This overview was based on the experiences of different local financial institutions
from Latin America.
OUTCOMES
Participants left the session with:

Knowledge on a typology of the different financing instruments for cities to finance adaptation
projects;

An increased understanding of the intermediated financing including existing practices of local
financial institutions, barriers and leverage effects; and

Recommendations towards a course of action for cities – to be directed at local finance
institutions in order to maximize the deployment of climate finance in favor of local
governments.
METHODOLOGY

AFD opened the session with a short introduction of (i) himself, (ii) each speaker, (iii) AFD’s
activities in supporting local financial institutions (5 minutes)

Each speaker (CDC Climat/ BDMG/ CAF) was given time to describe their work, showing maps
or other illustrations as needed (3 x 10 minutes)

The remainder of the session was organized around the guiding questions, with each panelist
given time to respond to individual questions, and to respond to comments made by other
panelists (25 minutes)

The facilitator managed questions and answers from the audience (25 minutes)

The facilitator concluded with closing remarks (5 minutes)
Guiding questions
1. What is the added value of local financial systems to finance climate-resilient
investments?
2. What kind of support is provided to cities?
4. What are the conditions for cities (institutional, technical, financial etc.) to have access
to local financing?
5. What kind of adaptation projects are being financed?
CONTRIBUTORS
Facilitator
Clément Larrue, Lead Specialist on Cities and Climate Change, Agence Française de
Développement, Paris, France
Panelist
Alexia Leseur, CDC Climat Research, Research Unit Manager “Subnational climate
actions”, Paris, France
Review of the main sources of financing for cities to back their adaptation projects
Panelist
Panelist
Claire Eschalier, Research Fellow, CDC Climat Research, Paris, France
Marco Aurelio Crocco Afonso, CEO, Development Bank of Minas Gerais (BDMG), Belo
Horizonte, Brazil
Presentation of BDMG’s strategy in supporting local authorities in financing their
climate resilient projects
Panelist
Ubaldo Elizondo, Principal Executive, Environment and Climate Change, CAF Development Bank of Latin America, Caracas, Venezuela
The role of a multilateral regional development banks in supporting the emergence of
urban climate resilient projects and their implementation with appropriate financing and
support
Further recommended reading
Johannesburg GDS 2040:
http://www.joburg.org.za/gds2040/gds2040_strategy.php