Securing financing for climate projects through tailored regional concepts
Although cities play a crucial role in climate change mitigation, many regional strategies struggle due to insufficient financing. The Climate Mitigation Fund (CMF) 2.0 project considers local ecosystems in order to design fund concepts for specific regions, such as Frankfurt am Main, Germany and Bologna, Italy. This approach produces a roadmap for municipal climate funds, supplying cities with a powerful financial instrument to foster their low-carbon economies.
The project, CMF 2.0, is in the process of developing two climate mitigation fund concepts for the cities of Frankfurt am Main and Bologna, which are designed to reflect each region’s specific capacities and requirements. The project partners, including the University of Kassel, Modena Energy Agency and ASTER, in close collaboration with the Cities of Bologna and Frankfurt am Main, aim to develop concepts that will substantially increase the funding volume for both income-generating and non-income-generating climate projects.
In order to achieve this goal, the project takes an innovative approach by focusing on the needs of both the demand and supply side. Through expert consultations, workshops and surveys, the CMF 2.0 team will analyze the pool of potential regional investors with regards to their expected conditions and desired benefits.
The project will also consider methods to increase investor motivation. Finally, CMF 2.0 will categorize projects that are eligible for financing, and design a sustainable management structure, ensuring an efficient and lasting framework.
This project will provide a validated methodology for cities across Europe to create their own locally-tailored climate funds. CMF 2.0 is in touch with other LoCaL projects (Matchmaker, Project Preparation Facilities) to ensure compatibility between CMF 2.0 and other stages of urban climate financing.
Alice BauerResearch fellow, lecturer and PhD candidate
University of Kassel, Institute for Urban Development
+49 561 804-7423
Five-month concept development methodology involving more than 20 experts from the fields of finance, fund management and business, in addition to local authorities and civil society in each region
Current demand estimated at €10-15 million in public and private funding per year