Local climate funds: Working together towards stronger local climate action

Green roof on a high building

Municipalities finance climate protection projects primarily through their own funds and subsidies from the federal and state governments. Nevertheless, in many municipalities the funds are not sufficient for all projects the municipality is aiming for. Therefore, innovative, alternative financing options such as climate funds can open up new resources for local climate protection.

A look at existing climate fund models shows that so far only a few municipalities have chosen models that involve a variety of different actors and mixed financing options. In the planned fund, the local government takes on an important part as a role model and initiator, but the medium-term goal is the financial participation of the population and local businesses. The focus is thus on investing in one's own region and community. By selecting projects in advance, the fund contributors also know in advance which projects they will be supporting with their contribution.

adelphi advises and supports five municipalities (Bottrop, Greifswald, Ilm-Kreis, Ludwigsburg und Lübeck) in setting up a municipal climate protection fund. This includes the development of a basic concept for the innovative approach of local climate protection funds on the basis of a needs analysis in the municipalities concerned as well as interviews with experts from various pioneering institutions. Subsequently, individualised concepts for climate funds are developed together with the selected municipalities and the inter-municipal dialogue is strengthened. Once the concepts are finalised, adelphi provides ongoing support for the initiation of the climate funds and their initiating phase, including communication, mobilisation of local actors, project selection and exchange.