Ambroise Fayolle, vice-president of the European Investment Bank, spoke at "Leveraging public and private finance for urban climate action: the role of financial intermediaries," a COP30 side event.
Check against delivery
Ladies and gentlemen,
It is a pleasure to welcome you to today’s gathering on leveraging public and private finance for urban climate action – and the role of financial intermediaries. We are united by a shared understanding: the fight against climate change will be won or lost in our cities.
Urban areas house over half the world’s population – a figure that will rise significantly over the coming years – and produce nearly 70% of global greenhouse gas emissions. Despite being on the frontlines of climate impacts – from rising seas to heatwaves – cities often lack the financial and institutional capacity to respond.
At the European Investment Bank, the EU’s financial arm, we regard urban climate action both as challenge and an opportunity. The investment needed to make cities resilient is vast, but if we succeed, we can drive global climate progress from the ground up.
These ambitions resonate strongly with the goals of the multilateral development bank (MDB) reform process, which seeks enhanced coordination and collective impact. They emphasise the importance of strategic partnerships, through better alignment between subnational and national climate actions, and the deployment of the right mix of climate finance instruments.
In our urban climate finance toolbox, financial intermediaries – our partner banks or funds – play a crucial role. They connect global climate finance with local implementation in cities and communities. By working with national development banks, commercial lenders and funds, we are able to channel financing more efficiently, tailor solutions to local needs and scale impact where it matters most.
In France for example, we have teamed up with La Banque Postale to finance energy-efficient renovations of social housing and buildings in the public and social economy sectors. In Kenya, the EIB is working with IHS Kenya Green Housing Fund for the construction and acquisition of energy-efficient and affordable housing in Nairobi.
The EIB is fully committed to accelerating urban climate action. Through the second phase of our pioneering Climate Bank Roadmap – unanimously approved by all 27 EU Member States – we will stay the course.
We are doubling adaptation finance to €30 billion by 2030, simplifying procedures and accelerating green investment for competitiveness, technological leadership and energy security.
Urban climate action is central to our strategy. In 2024 alone, the EIB dedicated around €20 billion to urban climate finance, with a strong focus on sustainable transport and adaptation.
Our advisory services are key to this effort. Initiatives like the City Climate Finance Gap Fund – developed with Germany, Luxembourg, the World Bank and GIZ – are showing what is possible when ambition meets action. The Gap Fund is supporting 106 investments across 127 cities, unlocking €1.5 billion in climate finance worldwide.
From the urban linear park in Palmas, Brazil, to landfill redevelopment in Salvador, we are seeing tangible results. We are also expanding engagement with intermediaries in countries like Kyrgyzstan and Ecuador, helping build pipelines of bankable, climate-smart urban projects.
We recognise the challenges. Urban finance is complex. Fragmented institutions, limited local capacity and insufficient risk-sharing mechanisms often slow progress. That is why we are making technical assistance, capacity building and innovative financial tools a priority.
Looking ahead, we propose two key actions:
- Intensify cooperation with financial intermediaries – expanding mutual reliance agreements and deepening partnerships to scale impact;
- Expand technical assistance programmes – to strengthen local project preparation, improve bankability of projects and attract private investment.
We are committed to working hand-in-hand with cities, partners and financial institutions to ensure every euro invested delivers measurable, lasting impact for cities, local communities and people.
Thank you.