Cities Climate Finance Leadership Alliance lays out how cities and sub-national bodies can finance solutions to climate change

10th November 2016

Cities and other sub-national bodies can and should take advantage of upcoming investments in urban development and find climate finance solutions to play a major role in tackling climate change, according to a new report released today.

The report by the Cities Climate Finance Leadership Alliance (CCFLA) and partners looks at subnational and local climate finance activities and pinpoints gaps that require urgent attention to harness subnational and city-level climate responses.

Cities, as population epicenters, account for three-quarters of the world’s energy use and some 70% of the world’s carbon emissions. These figures are likely to increase if no action is taken, with around 60% of people expected to live in urban areas by 2030, according to the United Nations.

Subnational and city actors have shown commitments by submitting pledges to the Non-State Actor Zone for Climate Action (NAZCA) Platform, but they can do much more, the report finds.

Although great efforts are being made to align the financial system with sustainable development, trillions of dollars still need to be mobilized to meet the Sustainable Development Goals (SDGs) and the Paris Agreement, and to overcome the financing barriers at the subnational and city levels.

The scoping report calls for deeper analysis of the projects and financing currently available at a sub-national level. Having a greater understanding of the best practices currently being implemented will help to overcome barriers and further reduce financial risk.  The report finds that major advances need to be made in order to create incentives for investment in local resilience. This in turn will then support local and subnational governments in building fiscal autonomy, integrating and further adopting standards, operational frameworks and measurement tools.

The CCFLA also calls for more training and awareness building initiatives and to further explore derisking instruments and dynamics aiming at reducing the perception of risk, aiming to both empower local and subnational governments to understand the environment and players, and responsible investors to adapt to local needs in order to better catalyze climate finance flows.

The report was developed in partnership with Climate-KIC, FMDV, R20 Regions of Climate Action and UN Environment.

Report: Key facts

 

 

 

 

 

 

 

 

 

Download a free copy of the report below.

Localizing Climate Finance: Mapping Gaps and Opportunities, Designing Solutions