Pooled Green Bonds for Municipalities – PGB4M

Knowledge sharing and exploring opportunities to develop new markets in Europe

The challenge

Subnational Green Bonds and Subnational Pooled Financing Mechanisms (SPFM) have been identified in the New Urban Agenda as potential catalysers to finance its implementation at the local level and as accelerators to mobilize capital markets to finance cities’ low-carbon transition. However, the knowledge and understanding of public stakeholders, national and local decision makers on how to combine these two instruments remains unclear.

Municipalities are confronted with challenges in accessing capital markets, particularly relating to creditworthiness. Subnational pooled financing mechanisms provide joint access to capital markets and advantageous conditions for borrowers, especially for municipalities that on their own would not have the expertise or credit history to access the markets.

Project aims and objectives

The project aims to promote and develop Subnational Green Bonds and Subnational Pooled Financing Mechanisms to national and local public representatives in South and East Europe to develop new markets, stimulate financial transactions and leverage additional funds/resources in the region.

More specifically, the project aims:

  1. To introduce the principles of Subnational Pooled Financing Mechanisms and Green Bonds to cities leaders
  2. To explore how pooled financing mechanisms can be used for green bond issuance, i.e. how Subnational Pooled Financing Mechanisms (SPFM) can be used to tap capital markets to finance low-carbon and climate-resilient infrastructure and expand the green bond market toward cities; and
  3. To raise awareness around the potential of pooled green bond financing for municipalities in target regions and support municipalities and local funding agencies to raise green bond finance 

Interested in this project?

We’re welcoming national and local level government and institutional stakeholders:

  • National treasury
  • National agencies
  • National association of local governments
  • Credit rating agencies
  • Investment funds
  • Intermediary financial institutions
  • Cities and Regions


FMDV leads this project in collaboration with Climate Bonds Initiative

Contact details

Jean-François Habeau

Jean-François Habeau is the Executive Director of FMDV. He is based in FMDV headquarters in Paris and has an extensive 12 years expertise in local finance and investment, PPPs, climate finance and a strong experience of working with public entities and financial and technical partners.

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