Background
Munich is a city with an extensive ecosystem of finance actors, each of whom must be rapidly engaged by the Climate-neutrality Mission Unit for the success of the Mission. Yet, the municipality is not well positioned to define a process and engage these actors at the required speed. Expert support can help to deliver on these capacity and expertise needs.
Munich seeks to provide effective entry points and processes for external partners and support offers on climate finance, to meaningfully and successfully engage with the Climate City Capital Hub (CCCH) and other financial partners. As outlined in Munich’s Climate City Contract (CCC), a promising concept is the idea of a Local Financing Facility, co-created with local stakeholders. The Local Financing Facility would function as a ‘socket’ to ‘plug in’ diverse, innovative and external capital sources, leveraging national City Finance Specialist (CFS) support and international CCCH project preparation and financial advisory into the Mission, and streamline the interaction between the demand and supply side of project finance at the local level. Specific scoping and feasibility efforts need to be undertaken to explore this concept further for Munich, including validating the concept in terms of both scale and institutional design parameters.
Furthermore, the pilot activities undertaken by Munich will ultimately lead to “Project Sheets”, (separately from Project Intake Forms as developed by the CFSs and CCCH for project specific assignments) as a major final output, which capture the concrete results of a data-driven governance process with city stakeholders. In parallel, the Transition Team in Munich, as well as the City itself, will add a range of climate action projects and measures to the Mission portfolio.
In order for these projects to be developed professionally, the City of Munich seeks:
1) A specialised local facility to provide a wide-range of deep financial expertise and a good understanding of international and European finance, applicable specifically to the context of Munich and its local finance ecosystem, in order to capacitate, advise and train the Munich Climate Mission Team (Stabstelle Mission Klimaneutralität at the Referat für Klima- und Umweltschutz).
2) Rapid engagement of an existing strong, comprehensive and trusted network of all key local finance stakeholders to engage with the Munich Climate Mission and the Transition Team to review climate action ideas, projects and project portfolios to provide targeted advice, support and appraisal along the entire project development cycle.
3) The scoping and development of a “Local Financing Facility” structure specifically for Munich’s local context as a joint partnership activity with the Climate-neutrality Mission unit, based on a targeted adaptation of global best practices, particularly form the US and Europe, for the local legal, political and institutional context.
About the request
The City Expert Support Facility (CESF), through NetZeroCities / Climate-KIC, are requesting quotation for the development and management of a Local Financing Facility (in Munich). The selected service provider will be responsible for mobilising key financial stakeholders, structuring a Local Financing Facility, and providing investment expertise for climate projects. This work will ensure that Munich’s climate action portfolio is financially viable and attractive to local investors, reducing dependency on municipal and national budgets.
Key assignment activities:
1. Expediated Stakeholder Engagement – Identified stakeholders should be mobilised rapidly. Task includes rapid engagement of Munich’s financial ecosystem, including banks, institutional investors, and private capital providers.
2. Development of a Local Financing Facility concept/structure – Developing the conceptual structure of the platform, integrating external and innovative capital sources for climate action projects. Co-design of preliminary concepts will be done in collaboration with NetZeroCities, and preliminary concepts will be incorporated into stakeholder engagement activities.
3. Investment Strategy & Financial Structuring – Designing financing models, risk mitigation strategies, and funding pathways suitable for projects and overall financing needs as identified in the Munich Investment in the Climate City Contract.
4. Capacity Building for the Climate Mission Team – Training and advisory sessions on financial structuring, investment planning, and stakeholder engagement.
– Bidders are requested to propose a number of sessions commensurate with i) the maximum budget as stated above, ii) covering the three main topics described (financial structuring, investment planning, and stakeholder engagement), and iii) of sufficient frequency to ensure participants obtain practical and useful knowledge in taking the proposed Local Financing Facility forward.
Please find all further relevant information including delivery timeline, key tasks, full detailed scope, out of scope, milestones, and all related information below.
Timeline and additional information
Interested parties are invited to submit their proposals by 09 June 2025 (23:59 CET) to Luisa Carretti [CESF@netzerocities.eu]. Proposals should include and address all specific requirements related to the request which can be found below.
