City Climate Finance Gap Fund

What City Climate Finance Gap Fund does

The City Climate Finance Gap Fund is a multi-donor trust fund initiative established in September 2020 to provide free early-stage technical assistance and advisory support to cities and local governments in developing and emerging countries. The fund helps recipients convert low-carbon and climate-resilient ideas into strategies and finance-ready projects, targeting the pre-feasibility gap that other project preparation facilities typically do not cover. It aims to leverage €105 million in donor grant funding into more than €4 billion in downstream climate-smart urban investments, a stated 40:1 leverage ratio.

The Gap Fund is funded by Germany (Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety / BMUKN, and Federal Ministry of Economic Cooperation and Development / BMZ) and the Government of Luxembourg (Ministry of the Environment, Climate and Biodiversity). It is implemented by the World Bank and the European Investment Bank, with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) as an executing partner. The fund also works with city networks including the Global Covenant of Mayors (GCoM), the Cities Climate Finance Leadership Alliance (CCFLA), C40 Cities, and ICLEI for outreach and capacity building.

Service delivery runs through a structured pipeline: cities submit Expressions of Interest via the website, applications are screened by the Gap Fund Secretariats at the World Bank and EIB, and approved proposals receive in-kind technical assistance delivered by in-house experts or external consultants mobilized through the implementing partners. Core offerings include climate strategy development, early-stage project preparation support, capacity building, financier matchmaking to World Bank and EIB lending, and supplementary programs such as the Gap Fund Step-Up Project (SUP) with ICLEI and the Financial Intermediaries Cities Climate Action Programme (FICCAP). The fund has developed customized digital tools including the Urban Performance Tool, Housing Location Suitability Tool, Housing Calculator, Nature-based Solutions Opportunity Scan (NBSOS), and a Vegetation Atlas. As of October 2023, the Gap Fund had approved over 390 cities for support, with 183 active across 67 countries, and over 1,200 Expressions of Interest received and analyzed since inception.

Name

City Climate Finance Gap Fund

Legal name

City Climate Finance Gap Fund

Website

https://citygapfund.org

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

1–10 employees

Short description

The City Climate Finance Gap Fund is a multi-donor trust fund that provides free early-stage technical assistance to cities in developing and emerging countries, helping them turn low-carbon, climate-resilient plans into finance-ready urban investment projects, implemented by the World Bank and European Investment Bank with German and Luxembourg donor funding of €105 million.

Ownership category

akta.pro rank

Product category

Urban Climate Finance Advisory

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Financial Vehicles (52599), Environmental Consulting Services (541620), Environmental Consulting Services (54162)

SIC

Investment Advice (6282)

akta.pro primary industry

Climate / Clean Tech & Decarbonization Funds (FSANAJAA)

akta.pro secondary industries

Climate Finance Funds & Green Investment Facilities (BPADACAH), Climate Finance Strategy (CapEx planning, green finance, incentives & grants) (EUABAKAG), Environmental & Climate Grantmaking Foundations (BPAGAKAM)

Keywords

• Urban climate finance
• Technical assistance
• Climate-smart planning
• Project preparation
• Nature-based solutions

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others

Revenue model

1. Multi-Donor Technical Assistance Fund: The Gap Fund operates as a multi-donor trust fund that provides free technical assistance and advisory support to cities in developing and emerging countries. It does not generate revenue through traditional means; instead, it is funded by donor contributions from Germany (BMUKN, BMZ) and Luxembourg to provide advisory and technical assistance services to cities. The fund does not directly provide financing for investments nor transfer funds to applicants for support activities.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels10 records

Core offering

The City Climate Finance Gap Fund (Gap Fund) provides free upstream technical assistance and advisory support to cities and local governments in developing and emerging countries, helping them turn low-carbon, climate-resilient ideas into strategies and finance-ready projects. Services include climate-smart planning support, early-stage project preparation, capacity building, climate strategy development, financier matchmaking, and the development of bespoke digital planning tools such as the Urban Performance Tool, Housing Location Suitability Tool, Housing Calculator, and Nature-based Solutions Opportunity Scan (NBSOS).

Product overview

The City Climate Finance Gap Fund (Gap Fund) is a global technical assistance program that provides advisory services and capacity building to support climate-smart planning and investment in cities in developing and emerging countries. The Fund does not operate as a traditional software product but rather as a service portfolio centered on technical assistance and advisory support. Core service offerings include: Technical Assistance for Climate-Smart Planning, Early-Stage Project Preparation Support, Capacity Building Programs, Climate Strategy Development Support, and Financier Matchmaking Services. The Gap Fund also produces specialized digital tools and methodologies including the Urban Planning Scenario Modeling Tools, Urban Performance Tool, Housing Location Suitability Tool, Housing Calculator, Nature-based Solutions Opportunity Scan (NBSOS), and Vegetation Atlas. Additional programs include the Gap Fund Step-Up Project (SUP) in partnership with ICLEI and the Financial Intermediaries Cities Climate Action Programme (FICCAP). The Gap Fund is implemented by the World Bank and European Investment Bank in partnership with GIZ.

Differentiator

Problem solved

Functional benefit

Products and services

• Technical Assistance for Climate-Smart Planning Advisory and technical support for cities in developing and emerging countries to develop low-carbon planning and climate resilience, including upstream technical assistance, scenario modeling, and policy recommendations.
• Early-Stage Project Preparation Support Support for cities spanning strategic planning through pre-feasibility stages, including project concept definitions, pre-feasibility studies, and investment prioritization.
• Capacity Building for Urban Climate Development Training and knowledge transfer programs to build institutional capacity of cities for low-carbon and climate-resilient urban development.
• Climate Strategy Development Support Assistance in developing city climate strategies and generating in-depth analytics to assess climate action and resilience potential of plans, strategies, and investment programs.
• Financier Matchmaking Services

Quantifiable outcome

• Over 1,200 Expressions of Interest received and analyzed since September 2020
• +5 more outcomes

Named customers35 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Nine partnerships are on record, tiered minor, core and flagship.

• Atakpamé, Togo (City)minorOthers · 1 July 2026City representative participating in WUF13 Gap Fund delegation, sharing perspectives on urban climate challenges and working with technical and financial partners to turn climate priorities into finance-ready projects.
• C40 Cities Finance Facility (CFF)coreStrategic or Co-development Partner · 1 January 2024Project preparation facility partnership that provides Gap Fund beneficiary cities access to CFF's proven capacity development tools. Creates handover opportunities for cities at the feasibility stage, building a potential pipeline of projects for CFF's late-stage support. Joint CAFE training programs conducted.
• World BankcoreImplementation/ SI/ Consulting Partner · 1 September 2020One of two implementing secretariats managing the Gap Fund's multi-donor trust fund. Screens Expressions of Interest, develops detailed applications with cities, and delivers technical assistance through in-house experts and external consultants. Provides matchmaking to World Bank lending and other project preparation facilities.
• European Investment Bank (EIB)coreImplementation/ SI/ Consulting Partner · 1 September 2020One of two implementing secretariats managing the Gap Fund's multi-donor trust fund. Screens Expressions of Interest, develops detailed applications with cities, and delivers technical assistance in partnership with GIZ. Provides matchmaking to EIB lending and third-party financiers.
• Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)coreImplementation/ SI/ Consulting Partner · 1 September 2020Implements Gap Fund activities on behalf of the EIB, mobilizing technical assistance and expertise. Engages external consultants for assignments and supports capacity building and knowledge exchange activities.
• Global Covenant of Mayors for Climate and Energy (GCoM)flagshipStrategic or Co-development Partner · 1 September 2020Key city network partner supporting the Gap Fund's mission. Raises awareness among cities about available support, helps potential beneficiaries prepare Expressions of Interest, and coordinates peer-to-peer learning and technical knowledge on city-climate themes.
• Cities Climate Finance Leadership Alliance (CCFLA)flagshipStrategic or Co-development Partner · 1 September 2020City climate finance alliance partner that supports Gap Fund's demand-driven approach. Raises awareness among cities and coordinates peer-to-peer learning and technical knowledge sharing on climate-related themes.
• C40 Cities Climate Leadership GroupflagshipStrategic or Co-development Partner · 1 September 2020City network partner supporting Gap Fund activities. Engages with cities on climate finance issues, supports awareness raising, and participates in joint learning and knowledge exchange activities including C40 World Mayors Summit.
• ICLEI - Local Governments for SustainabilityflagshipStrategic or Co-development Partner · 1 September 2020City network partner that supports Gap Fund's outreach and capacity building. Engages in Regional Communities of Practice (RCoMPs), city pairing activities, joint events, and training programs including practical NbS training at WUF13.

Scale indicators15 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Cities Alliance: Multi-donor partnership hosted by UNOPS that supports city-level strategic planning and capacity building; materially comparable in mandate (urban climate/development TA) and beneficiary profile (developing-country cities).
• C40 Cities Finance Facility (CFF): Direct peer that complements the Gap Fund by providing late-stage feasibility support for city climate projects; CFF explicitly receives handovers from Gap Fund beneficiaries, indicating closely aligned project preparation mandates for urban climate finance.

Broad incumbents

• UN-Habitat: UN agency delivering urban planning and climate resilience technical assistance globally; comparable in mission (urban climate capacity building) and donor-funded model, but with broader urban development scope beyond climate finance.
• Climate Investment Funds (CIF): Multilateral climate finance vehicle with urban and infrastructure programs; comparable as a donor-funded climate investment platform but operating at much larger scale across multiple sectors beyond cities.
• European Bank for Reconstruction and Development (EBRD): Multilateral development bank financing sustainable urban infrastructure in emerging markets; comparable as a financier-of-last-resort for projects prepared with upstream TA support, complementing rather than competing with the Gap Fund.
• Green Climate Fund Project Preparation Facility: Larger, established multilateral climate fund offering project preparation grants globally; addresses a similar upstream TA gap but across broader sectors beyond cities, making it a broader incumbent rather than direct competitor.

Emerging players

• ICLEI - Local Governments for Sustainability: Global city network and strategic partner that supports peer-to-peer learning, Regional Communities of Practice, and city capacity building; directly comparable in target customer (developing-country cities) and capacity-building offering.
• C40 Cities Climate Leadership Group: Flagship city network partner of the Gap Fund focused on climate action in major cities; comparable in supporting urban climate capacity and financing readiness, though operating as a network rather than a project preparation facility.
• Global Covenant of Mayors for Climate and Energy (GCoM): Flagship city network partner helping cities develop climate action plans and prepare EoIs for the Gap Fund; directly comparable in supporting city-level climate strategy and planning capabilities.

Others

• GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit): Implementing partner for the Gap Fund and broader German development cooperation agency; comparable in delivering climate/urban technical assistance projects but as a much larger executing entity across many thematic areas.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/city-gap-fund

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about City Climate Finance Gap Fund