Frequently Asked
Questions

The Gap Fund provides advisory support and technical assistance for early-stage project preparation and climate investment planning, i.e. up to pre-feasibility stage. The technical assistance is provided in-kind either by the implementing partners, the World Bank (WB), the European Investment Bank (EIB), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through either in-house expert or external consultants mobilised directly by the implementing partners.

The types of technical assistance provided can range from building capacity for cities and local governments to planning low-carbon, climate-resilient development, to supporting early-stage project preparation, defining the project concept, carrying out or supporting pre-feasibility work, analysing available alternatives (e.g. technological solutions), enhancing project bankability and identifying potential sources of finance. Further information on Gap Fund-supported activities can be found here.

The Gap Fund does not directly provide financing for the underlying investment at the implementation phase of the project, nor are funds transferred to applicants for the support activities.

Cities, municipal authorities and local governments of developing or emerging countries eligible to receive official development assistance as defined by the Organisation for Economic Co-operation and Development (OECD)’s Development Assistance Committee (DAC) can apply for Gap Fund support. Please refer to the last DAC List of ODA Recipients.

When a city is not the direct applicant, evidence of support from the local government to which the expression of interest relates will be requested during the selection process. For example, applications may be made by municipal enterprises (such as water utility companies, waste management agencies), private sector providers of urban services (such as companies providing services under contract to a city) and urban developers (such as companies delivering public affordable housing).

An Expression of Interest may also be submitted by entities representing groups of municipalities (e.g., municipal associations), national or regional municipal agencies, municipal development banks or national development banks responsible for municipal investment. Evidence of support from the relevant local government will be required in all cases.

The Gap Fund provides technical assistance for upstream and early-stage project development for low-carbon and climate-resilient urban planning and aligns with the Paris Agreement objectives. Proposals, therefore, must have an urban focus and the potential to make a significant positive impact on climate change mitigation and/or adaptation. Sectors include, nature-based solution and green areas, urban mobility, energy efficiency and small renewables including in new or retrofit buildings, street lighting, district cooling and heating, solid waste and wastewater, circular economy and eco-district approaches including for slum upgrades. Please refer to the eligibility criteria.

Examples of the types of support the Gap Fund would consider include:

Medium-term: Pre-feasibility support to labor-intensive investments including drainage systems, water supply and sanitation systems, solid waste management and waste to energy solutions, multi-purpose community centers, green/public spaces, inclusive public transport and other non-motorized transport options, green infrastructure design interventions and other nature-based solutions.

Long-term: Analytics to advise on city economy, spatial growth, environment and public health, affordable housing, transit-oriented development corridor strategies, sustainable cooling approaches, pre-feasibility support to climate-smart investments that reduce emissions and improve resource consumption, use of renewable energy sources in the delivery of energy services, and green buildings.

After ensuring that the proposal meets the eligibility criteria, the applicant must fill out an Expression of Interest form and submit it. Expressions of Interest can be submitted on a rolling basis. There are no deadlines.

The Gap Fund is a global fund that supports cities in developing countries in all regions. All countries on the OECD DAC list of ODA recipients are eligible. There are currently no fixed allocations of support per target region. However the Gap Fund may launch subsequent calls for expressions of interest targeting specific regions or sectors to achieve the broadest possible geographical and sectoral coverage. If the Gap Fund receives multiple Expressions of Interest from the same city (e.g. from different departments or agencies), the Gap Fund will contact the applicants and seek to priorities, combine or coordinate the different proposals.

The Gap Fund reviews each submission no matter the size of the city, on a case-by-case basis. In general, the Gap Fund targets rapidly urbanizing cities in developing countries. This includes large metropolitan areas as well as second and third tier cities that are rapidly urbanizing. For very small cities we encourage applicants to work with other cities in the region with similar issues to submit a multi-city proposal.

The Gap Fund aims to support proposals with a sizeable climate mitigation and/or adaptation impact or that can be considered as pilots or proofs of concept that, if successful, can be easily replicated in other geographic areas or ‘scaled up’. As each proposal is different, there is no minimum size for an application to be considered. However, the potential to deliver significant climate benefits is an essential selection criterion during the detailed assessment phase.

Proposals from smaller municipalities can be bundled into one multi-city Expression of Interest provided they can be considered activities of a coherent programme (i.e. they concern the same sector or area and have the same climate objectives). As an example, a municipal solid waste management project serving several small neighbouring municipalities can be considered a single project if it allows for economies of scale and a higher efficiency than individual projects of a similar nature developed separately by each municipality.

It depends. If your city’s proposals can be considered as activities of a coherent programme (i.e. they concern the same sector or same area/city neighbourhood and have the same climate objectives), they can be included in one Expression of Interest. If, however, your city has several projects meeting the Gap Fund eligibility criteria that can be considered standalone projects, applicants are welcome to submit more than one Expression of Interest. Projects combining investments across two or more sectors are also welcome recognizing that climate action is multi-sectoral and may involve stakeholders across the full range of a city’s investment plan.

The Gap Fund secretariats assess if the proposal aligns with the City Climate Finance Gap Fund’s goals of supporting low-carbon, climate-resilient urban development.

A proposal is functionally linked to an urban area if it contributes to:

• Strengthening the city’s climate strategy or action plan
• Enhancing urban infrastructure and services for climate mitigation or adaptation
• Building local capacity for sustainable urban planning
• Prioritizing or preparing investments that benefit the city and its population

Even if activities extend to surrounding areas, the key is that they support the urban area’s climate goals, planning, or resilience.

The Gap Fund provides technical assistance for planning, strategy development and early-stage project definition and pre-feasibility. It does Not provide support beyond project feasibility assessment stage, nor implementation financing. However, proposals that are approved for Gap Fund support would also benefit from facilitation for potential matchmaking opportunities with the WB, EIB, GIZ and other project preparation and financing facilities for later stage project support and or implementation.

In exceptional cases, projects at a more advanced stage (but for which there are gaps in the previous project preparation phases) may be considered, provided they are expected to generate significant climate co-benefits and/or they present significant potential for scalability and replicability in other contexts.

As a first step, the applicant should ensure the project proposal meets the eligibility criteria for Gap Fund support. Secondly, an Expression of Interest form must be completed and submitted either directly by the city or local government, or if not, with explicit approval from the city or local government. Thirdly, the applicant will be informed as to whether the submission meets the eligibility criteria of the Gap Fund and has been shortlisted for further follow-up or has not been considered further by the Gap Fund.

If not shortlisted, and consent is given by the applicant in the Expression of Interest (EOI), the Gap Fund Secretariat will share the application with other Gap Fund partners, Global Covenant of Mayors for Climate and Energy (GCoM), the City Climate Finance Leadership Alliance (CCFLA), C40 Cities Climate Leadership Group (C40), and ICLEI (Local Governments for Sustainability). and other potential sources of project support.

If shortlisted, the applicant will be contacted by either the WB or EIB Gap Fund Technical Secretariats to set up an exploratory call to discuss the background, details and scope of the project. Depending on the outcome of this call, either the WB or EIB regional teams will then work with the applicant to develop a detailed application to the Gap Fund.

The Gap Fund Secretariats will then assess the detailed application with consideration of the following:

• the extent and credibility of anticipated climate action benefits;
• replication potential and scalability;
• alignment with central and local government commitments;
• positive environmental, social and economic co-benefits;
• potential bankability or creditworthiness;
• political ownership; and, priority at city government and the national level.

The applicant will then be informed as whether or not their detailed application has been accepted by the Gap Fund Secretariat.

As above, additional considerations that may help increase the chances of your proposal for receiving Gap Fund support include:

• Completeness and quality of the proposal, in particular clarity on the specific type of support being requested;
• Size and credibility of climate mitigation or adaptation impact potential;
• Potential for replicability and scalability to other cities or regions;
• Innovation or first of kind type activity in the city or country;
• Considerations regarding the geographical and sectoral spread;
• Cities that are rapidly urbanizing or sprawling;
• Political ownership by the city or local government
• Alignment with central and local government commitments
• Potential bankability or creditworthiness

Before sending your submission, please check that:

1. The applicant is a representative from the local government, has explicit approval from the city, or is delivering services to the urban area.
2. The country is on the OECD-DAC List
3. The submission clearly states the problem the project is trying to address and the climate-positive impact it will bring when implemented.
4. The submission clearly states the type of support requested from the Gap Fund.

If eligible, the proposal will move to the next phase, and the applicant will be contacted requesting additional information and a more detailed assessment. An overall assessment will then be conducted, and the applicant will be informed of the result. If the outcome is positive, the applicant will receive confirmation about the scope of technical assistance to be provided by the Gap Fund. The timelines for receiving notification will vary by applicant and depend not only on the completeness of the original application but the time required to seek any additional clarifications. As such, applicants are encouraged to be as thorough and specific as possible at all stages of the process.

You should only submit your completed Expression of Interest form after collecting all relevant proposal information, including information from other relevant departments or agencies in the local administration. If you have difficulties understanding the information required in the form, kindly refer to the question “I have some difficulties filling in my Expression of Interest. Who can I ask for support?” If some information required to complete the application form is unavailable, applicants can leave that part of the form blank and submit the Expression of Interest. All applicants should clearly understand, however, that failing to provide as much information as possible on the form may not only delay the process but reduce a project’s chances of being considered eligible and moving forward to the detailed assessment phase.

The application will be rejected outright if the proposal does not meet the eligibility criteria. Other proposals may also be rejected if the additional information provided through the selection process is insufficient or does not demonstrate considerable impact compared with other applications received. In this case, the rationale for rejecting an application will be specified, and the applicant will have the opportunity to submit a new application for the same proposal once the issues highlighted in the selection process have been addressed

The Gap Fund website includes a wealth of information on successful project applications, including an interactive global MAP of projects, project Stories tab and the Fund Annual report. These examples are intended to provide inspiration for potential applicants.

Gap Fund support is provided free of charge, thanks to donor funding. However, cities and their partners (e.g., service providers, municipal companies and other organisations) receiving Gap Fund support must cover internal costs of preparing the application for the Gap Fund and staff time associated with interacting with experts and advisors provided by the Gap Fund or to submit relevant documentation/data about their city, strategy, project or proposal. Cities are also expected to be active partners in the process and identify relevant staff to actively engage with Gap Fund experts.

No, it is not a requirement for your city to secure a loan from the European Investment Bank or the World Bank in order to benefit from Gap Fund support. However, it is advisable to ensure that your projects are aligned with the priorities of these institutions and those of your country, as this may facilitate smoother implementation at later stages.

Yes, engagement with other development banks is not a requirement for eligibility under the Gap Fund. However, cities are encouraged to identify potential sources of financing for project implementation to help ensure continued support beyond the completion of technical assistance

No. The Gap Fund support is not contingent on being committed to Global Covenant of Mayors for Climate and Energy (GCoM) or another city network. It is, however, noted that membership and/or engagement with regional or city networks and other partners active in supporting climate action can help demonstrate commitment; such organizations may also be able to provide advice on completing the Expression of Interest (EoI) application. GCoM is supporting EoI development. For further information, don’t hesitate to get in touch with info@gcomprojectsupport.org

The Gap Fund aims to support proposals that align with the Paris Agreement objectives and therefore a proposal’s expected climate mitigation and/or adaptation impact is an essential selection criterion during the detailed assessment phase (see question “How will the selection process work in practice?”).

However, considering that proposals requesting Gap Fund support will be early stage, a proposal’s expected climate mitigation or adaptation potential may be unavailable at the time of application. Accordingly, this information will be collected during the implementation of the technical assistance, whenever possible, depending on the type of assignment.

In the Expression of Interest form the applicant must commit to estimating the climate change mitigation and/or adaptation potential of the proposed project that will help achieve low carbon, climate resilient urbanization pathways— either independently or with Gap Fund support as part of the technical support package. The applicant can use standard methodologies and publicly available tools for scenario planning to identify the climate impacts and target scenarios or request the support of the Gap Fund experts and partners to conduct preliminary analyses of greenhouse gas emission reductions or reduction in climate vulnerability.

At the EOI stage, a formal expression of support signed by the relevant political authority is not required. However, as specified in the EOI form, the applicant does commit to providing evidence of local political support for the proposal at the detailed application stage. 

Political support or endorsement is an essential for success, not only for implementing proposals but in ensuring their longer-term sustainability and benefits. Applicants must provide evidence the proposed activities align with the Paris Agreement, in addition to existing climate action plans, master plans and urban development plans at the local level. 

Formal evidence of political level support would be required once the project scope is identified in the detailed assessment phase.

In general, it is important that proposals receiving Gap Fund support fit within an overarching urban climate strategy or action plan. In the case where the city is still in the process of developing such a climate strategy or plan and the submitted proposal aligns with its objectives; applicants are still invited to complete and submit an Expression of Interest form (even though it may not yet be formalised in a climate action plan or similar document). In the case where the city has not yet begun developing a climate strategy or plan, or requires support to update an outdated existing one, applicants are encouraged to flag this in the EOI for Gap Fund support

After receiving technical assistance from the City Climate Finance Gap Fund, your city will have stronger climate strategies and investment plan, clear project concepts, and improved capacity for low-carbon, climate-resilient development.

The Gap Fund also helps with matchmaking to connect your city with potential public and private financiers, such as the World Bank, EIB, development banks, or third-party investors for later stages of project preparation. While it doesn’t provide direct funding, the Gap Fund ensures your projects are bankable, climate-smart, and ready to attract investment.

• Two Trust Funds: The Gap Fund operates as one initiative organized around two multi-donor trust funds, one managed by the EIB and the other one managed by the World Bank. The Gap Fund structure ensures strong partnerships and coordinated governance and implementation.
• Partnerships: Regular exchange between partners including donors, implementing agencies, cities, and other actors will be facilitated through the Gap Fund Partnership Forum. It serves as a platform for ideation, sharing experiences, expertise and exchanging information. In addition, it strengthens collaboration between the Gap Fund and key actors in the city climate finance sectors. It aims to inform and guide the overall strategy and direction of the Gap Fund.
• It provides a platform for sharing experiences, expertise and exchanging information and ideas between key players in the city climate finance arena to inform the overall strategy and direction of the Gap Fund.
• Governance: Donors provide strategic direction to the two separate Multi Donor Trust Funds (MDTFs) implemented by the WB and EIB through their respective donor committees. The donor committees for the two MDTFs are held concomitantly with cross-participation of the WB and EIB as observers in each-other’s donors committee to ensure coordination and consistency between the implementation of the two MDTFs.
• Implementation coordination: EIB-WB collaboration includes: (i) joint outreach, communication and knowledge-sharing activities carried out in partnership with cities networks and other key partners, (ii) a “one gap fund” website offering information on both Gap Fund MDTFs and the ability for cities to submit their expression of interest to the Gap Fund, and (iii) coordination mechanisms for the WB and EIB to screen Expression of Interests and agree on further processing by either of the two MDTFs.

• Focus on early-stage project preparation. Unlike most Project Preparation Facilities (PPFs), the Gap Fund uniquely comes in at the very early stage of urban planning and project preparation – before the feasibility stage. It fills gaps in technical assistance for data and analytics to answer the hard questions on climate mitigation and adaptation potential, impact, prioritization and planning. To ensure maximum efficiency, the Gap Fund aims to close gaps in urban planning and project preparation that are not or cannot be covered by other project preparation facilities.
• Support to analytics and strategy development for low-carbon urban development. To complement existing programs implemented by the World Bank such as the City Resilience Program, the Gap Fund has a specific focus on supporting analytics and strategy development for low-carbon urban development.

The Gap Fund has 10 partners so far. Three Donors, BMWK, BMZ and Luxembourg have contributed €105 million to the Gap Fund. There are also the implementing secretariats WB and EIB in partnership with GIZ and four city network and alliance partners – C40, GCOM, ICLEI and CCFLA.

To date, €105 million has been pledged to the Gap Fund. The Gap Fund has a target size of at least €100 million and aims to unlock more than €4 billion in investment for bankable climate action projects in cities. There is no defined minimum contribution.

The Gap Fund is open to contributions from both public and private sectors.

The Gap Fund only supports urban projects and initiatives with the strong potential to help cities reduce emissions that align with the goal of limiting warming to 1.5 degrees Celsius or adapting to climate change. Accordingly, the extent of a proposal’s climate ambition is a key selection factor. Strong engagement of the World Bank and EIB ensure that selected proposals also have a ‘reality check’ as far as financing potential and physical implementation. The Gap Fund intervenes at the critical early stage of planning/project preparation and are expected to be catalytic to enable climate investments. Gap Fund donors would thus also be supporting low-carbon, climate-resilient urban development needed to achieve several of the Sustainable Depeloment Goals (SDGs) — especially on Climate Action (SDG 13) and Sustainable Cities and Communities (SDG 11), but also Clean Water and Sanitation, (SDG 6), Affordable and Clean Energy, (SDG 7) and Decent Work and Economic Growth, (SDG 8).

The Gap Fund can be reached through the contact page on the website.