The first “State of City Climate Finance” report was launched at Paris City Hall on 4th December 2015 by the Cities Climate Finance Leadership Alliance. The report identifies the gap between the current levels of investment in low-emission, climate-resilient urban infrastructure and the volumes required to ensure that the world is on track to keep global temperature rise below 2 degrees.
The report also includes analysis of major barriers to investment and solutions to address these. The report suggests that national governments adopt policies and incentives that encourage cities to invest in low-emission and climate-resilient infrastructure.
Also, it urges cities to adopt frameworks that put a price on carbon, such as cap-and-trade mechanisms or traffic congestion charges. Finally, it recommends strengthening banks and institutions that will support cities in developing investment-worthy climate-related projects. It suggests that international development finance be directed through local financial institutions, which are well-positioned to help cities finance climate-smart infrastructure solutions.