The European Bank for Reconstruction and Development (EBRD) has expressed its readiness to assist cities in preparing climate-related projects, Lin O'Grady, head of Green Cities at the EBRD, said at the 13th session of the World Urban Forum (WUF13) in Baku, Report informs.
"The EBRD stands ready to assist cities in planning and developing projects aimed at sustainable development. The lack of well-prepared projects remains a major barrier to attracting loan financing. The EBRD plans to actively participate in this process together with other multilateral development banks," noted Lin O'Grady.
According to her, the significant cost of capital remains a key barrier to implementing climate projects in urban areas.
"To overcome this barrier, the EBRD is using a blended finance mechanism, combining its own resources with grants and concessional loans from institutions such as the Green Climate Fund and the Climate Investment Funds," she noted.
According to Lin O'Grady, a wide range of guarantee instruments exist that can reduce borrowing costs and address the issue of access to financing for climate initiatives.