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Tool

Climate Financing Options (ICLEI Decision-making tree)

This climate finance decision-making tree, developed  with the support of the Urban Leds project, guides local and regional governments through a series of questions that help them consider different financing tools. Each financing tool is described, including advantages, disadvantages and case study examples. 

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Goal

Learn about different financing options for municipalities with the climate finance decision tree and identify the financing options most suitable for your project and need.

Tasks

Step 1.  For this tool to work best, it would be good if you have identified one or more specific projects to be financed by the city, ideally a climate-related project. For this step, refer to tool – Detailed Project Preparation and Exchange, try to define the project in this phase as detailed as possible, also expected expenditures and revenues

Step 2. With this knowledge and rough estimates in mind, now go through the decision tree questions and identify the financing options (tools) where your answers lead you to. Options for involving private sector, for example, are quite plenty

Step 3. Now go into the detail of each of the tools/options, explore their advantages and disadvantages, and reflect what does that mean to your project, how feasible the different options are for your municipality

Step 4. If you are looking to get external funds for your (climate project), also use the bankability check-list to further design the project with these benchmarks in mind

Materials

PowerPoint Slides, Print-outs of the decision making tree and bankability check-list / or pdf version in laptops, flip chart for step 1 and board /template for Step 2 -3

Note

You can get inspiration from CDIA Pre-feasibility Study Guideline to further design the project. Urban Leds project was funded by the European Union and it has been translated in French, Spanish, Portuguese and Chinese, thanks to the support of the Global Environmental Facility (GEF).

Timeframe

2 – 4 hours, more if you also want to go into more detail into the project 

Output

Prioritized financing option for your project, further details selected to guarantee bankability. 

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