Climate finance for cities: How can international climate funds best support low-carbon and climate resilient urban development?

Climate finance for cities: How can international climate funds best support low-carbon and climate resilient urban development?

This paper reviews the approaches taken by multilateral climate funds in the period 2010-2014 to support low-emission and climate-resilient development in developing country cities.

It identifies US$842 million in approved climate finance for explicitly urban projects, which equates to just over one in every ten dollars spent on climate finance over these five years. The majority of this finance has supported low-carbon urban transport systems in fast-growing middle-income countries. Adaptation funds financed only a handful of explicitly urban projects in the review period.

The working paper highlights that most cities in the developing world face severe barriers to planning and financing the infrastructure investments necessary to steer their growth in a climate compatible way. International public climate finance is a fraction of total financial flows, but has the potential to play a pivotal role in helping municipal governments and other urban actors overcome the many barriers they face.

[Adapted from source]

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