15.06.2016
Climate Alliance Working Group meets the Urban Development Division of the European Investment Bank
Frankfurt/Brussels. The Climate Alliance members of the working group on financing discussed with representatives of the European Investment Bank (EIB) on Wednesday 15 June in order to find out how they can make use of Municipal Framework Loans. Gerry Muscat, head of the urban development division of the EIB, highlighted these loans as the "biggest untapped potential" for multi-sector climate and energy financing at the local level.
During the discussion, members learned more about this still little known system, in which the EIB agrees on tailored packages with individual local authorities. These packages consist of a set of projects spanning various sectors and varying in size (including below €1 million); the funding period lasts from 3 to 5 years with a typical loan maturity of 20 to 25 years. The loans are designed to be very flexible: new projects can be added and older ones can be removed, as long as the local authority’s strategic priorities, which can include sustainable mobility, climate adaptation, sustainable energy and waste management, remain clear. The framework loans can also be blended with structural and investment funds as well as other sources of private or municipal funding.
The EIB and Climate Alliance have agreed to continue collaboration on Municipal Framework Loans. The first step will see members of the Working Group of Financing complement the EIB’s set of frequently asked questions with their own suggestions.
The working group also discussed a range of other topics during its third meeting in 2016, including experiences from the members on energy performance contracting for the public, a review of the European Fund for Strategic Investments one year after its launch, and ways to improve European financing programmes to better account for the constraints and realities of local authorities.
Want to learn more? Contact financing(at)climatealliance.org
