With an initial contribution from the EU budget of €4.1 billion, the European Fund for Sustainable Development is designed to trigger up to €44 billion of additional investments. Three of the five investment windows under the new Fund will directly target climate action. First agreements and implementation of first projects are expected by mid-2018.
The Sustainable energy and connectivity investment window will target sectors such as renewable energy, energy efficiency and transport, energy security, sustainable development. The Sustainable agriculture, rural entrepreneurs and agribusiness investment window will promote inclusive and sustainable growth with financing for smallholders, cooperatives, and mid-sized agribusinesses. Last but not least, the Sustainable Cities investment window will help to catalyse private investments by enhancing cities' capacity and creditworthiness and deploying large scale blended finance instruments to support urban infrastructure. It will target municipal infrastructure, sustainable urban planning, smart mobility, water, sanitation, waste management, renewable energy and energy efficiency.
Complementing the Sustainable Cities window, the European Commission is setting up the "Global URBIS" cooperation initiative in partnership with the European Investment Bank, the European Bank for Reconstruction and Development and the Global Covenant of Mayors. "Global URBIS" will provide cities around the world with financing and technical assistance to mobilise private investment, including in some riskier sectors. The European Commission will launch in 2018 a first call for projects for Africa and the EU Neighbourhood. The projects will benefit from a €1,5 billion guarantee facility from the European External Investment Plan.