Investment Prospectus Guide for Heat and Cooling Action Plans

As temperatures rise, counties, cities and municipalities need to invest in solutions that protect vulnerable populations, strengthen climate resilience and expand access to sustainable cooling. Subnational governments are stepping up with Heat Action Plans that identify what needs to be done. Yet these plans often lack the financial detail needed to assess investment needs and mobilize resources, making it difficult to translate priorities into action.

This Guide was developed to close that gap. Designed for subnational governments, it helps translate priorities in their Heat Action Plans and Heat and Cooling Action Plans into well-defined, finance-ready proposals. While informed by experience in Kenya, the methodology is adaptable to other subnational contexts. The Guide also aims to contribute to broader global initiatives, such as the Beat the Heat campaign, by helping local governments translate heat resilience and sustainable cooling commitments into concrete projects and financing opportunities. Specifically, the Guide aims to:

• Provide a step-by-step methodology to establish the rationale for priority interventions, disaggregate costs and clarify financial responsibilities.
• Standardise how funding needs are presented to budget decision-makers, donors, development finance institutions and commercial lenders, building credibility with funders.
• Structure a clear engagement pathway with capital providers, including through marketplace and matchmaking processes that connect projects with funders, financiers and technical partners.

The methodology follows five steps:

• Step 1 – Projects: Identify and prioritise heat and cooling interventions.
• Step 2 – Stakeholders: Map partners and integrate projects into planning and budgets.
• Step 3 – Financial preparation and scenario analysis: Assess costs, benefits, risks and financing needs.
• Step 4 – Investment prospectus: Develop investment-ready proposals tailored to each funder.
• Step 5 – Marketplace: Connect projects with funders, financiers and partners.
   

Key takeaways:

• Not every project needs to be bankable, but every project needs a pathway. Some interventions suit public budgets or grants, while others can attract concessional, commercial or blended finance.
• Finance starts with knowing the system. Map the available climate funds, borrowing rules and approval processes first. 
• Sustainability means planning beyond the ribbon-cutting. Be clear on who owns, operates and pays for each asset once grants end.
• Cooling measures must work for women. Gender analysis shapes how projects are sited, and governed.

The Guide was developed by Sustainable Energy for All (SEforALL), in consultation with seven Kenyan counties—Homa Bay, Kilifi, Kisumu, Makueni, Nakuru, Taita Taveta and Tana River—with funding from the Swiss Agency for Development and Cooperation (SDC).