This knowledge product builds on the main conclusions from the Cities Climate Finance Leadership Alliance (the Alliance) policy brief on Enhancing the Role of National Development Banks in Supporting Climate-Smart Urban Infrastructure, commissioned by FELICITY and developed in partnership with the Alliance.

The policy brief sets the context to explore how National Development Banks (NDBs) can be leveraged to finance climate-smart urban infrastructure. It identifies the general barriers to financing climate-smart urban infrastructure such as weak incentives, high perceived risks, lack of bankable projects pipeline, timing mismatch, and lack of suitable investment instruments. It also specifies barriers for NDBs at the institutional and financial levels and presents some actionable opportunities for NDBs. The summary of barriers and opportunities for NDBs is included in Annex B.