Local climate funds: Practical guide

Funding climate action poses significant challenges for many cities, towns, and districts. While the urgency to implement effective measures aligned with local climate strategies continues to grow, many local authorities are constrained by tight budgets. At the same time, new opportunities are emerging: an increasing number of engaged citizens, organisations, and businesses are eager to actively contribute to climate protection.

This is where a "local climate fund" can make a real difference. By pooling private and public resources, it provides a dedicated mechanism to finance impactful climate projects at the local level, while offering opportunities for community participation in climate action.

The practical guide offers a clear and actionable introduction to setting up a local climate fund. It provides step-by-step guidance for municipalities, covering key aspects such as organisation, financing, project funding, and transparency. Alongside this, the guide includes practical tools to support the implementation process and facilitate the promotion of climate projects. These resources include:

• Tools for project funding, such as:
  • A funding application template
  • Application support: templates for timelines and cost plans
  • A criteria matrix for evaluating and prioritising funding applications
  • A project report template
  • A receipt list template for proof of expenditure
• A project type catalogue showcasing different types of climate projects and examples of successful initiatives
• An annual report template to ensure transparent documentation of the fund's activities and achievements

For more detailed insights into the organisational, financial, and structural aspects of a local climate fund, the accompanying communications concept (also in German) provides additional guidance.