Several wind turbines are located on a hill and utilise wind power to generate clean and renewable energy. © GIZ

Transforming urban infrastructure to reduce carbon emissions and increase climate resilience

Financing Energy for Low-Carbon Investment – Cities Advisory Facility II (FELICITY II) Eastern Partnership and Central Asia

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  • Client

    German Federal Ministry for Economic Affairs and Climate Action (BMWK), International Climate Initiative (IKI)

  • Co-financier

    European Investment Bank (EIB)

  • Runtime

    2022 to 2026

  • Involved

    European Investment Bank (EIB)

  • Products and expertise

    Sustainable infrastructure: water, energy, transport

Context

Increasing urbanisation and the effects of climate change require environmentally sound infrastructure investments to reduce greenhouse gas (GHG) emissions and increase resilience. By 2050, urban populations will grow by two billion globally, with cities currently contributing three-quarters of global CO2 emissions. These urban areas face challenges like air pollution, environmental degradation and limited resilience. Despite widespread acknowledgement of the urgency, developing low-carbon and climate-resilient infrastructure remains complex. Cities in emerging and developing countries struggle to prepare viable projects, secure funding and implement such projects. FELICITY II works in the Eastern Partnership countries (Ukraine, Georgia) and Central Asia (Uzbekistan, Kazakhstan) and builds on the success of the FELICITY I Global Programme, which was carried out in cooperation with the European Investment Bank (EIB). In its second phase, the programme aims to reduce barriers by supporting low-carbon infrastructure projects in the wastewater and water sector and by making buildings more energy efficient.

Objective

Urban infrastructure in Eastern Europe and Central Asia is improved leading to lower carbon emissions.

Approach

The FELICITY II programme focuses on two sectors: energy efficiency in buildings and water and wastewater.

The selected project countries face similar financing challenges as well as technical issues in the implementation of climate change mitigation projects.

The project is jointly implemented with the European Investment Bank and:

  • Provides cities and financial intermediaries with guidance on the technical, financial and economic feasibility of planned urban investments. It supports in procurement procedures and advises on the social and environmental soundness of projects in terms of fulfilling the requirements for receiving financing.
  • Promotes the ability of municipalities to develop viable projects and access global funding opportunities.
  • Facilitates knowledge exchange among countries and regions on infrastructure project preparation and regulatory frameworks.

Last update: March 2024

Additional information