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

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.

“We have a unique window of opportunity, with large investments in infrastructure and housing to be made in the coming years to cater for needs of the growing number of urbanites,” said Martina Otto, who heads UN Environment’s work on Cities and Lifestyles.

“Let’s make sure these investments are future-proof: that means low-emission, resource-efficient and resilient. We urgently need the mechanisms in place to bridge potentially higher up-front cost with longer-term savings at all levels”.

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.

“We have reached a turning point,” said Carlos de Freitas, Director of Programs of FMDV, which co-hosts the Secretariat of the CCFLA, “showcasing that many actors are working together to provide complementary financial solutions to support the mobilization of climate finance at local and subnational levels. This is where transformative action for climate takes place.

“The next step is about scaling up the promising initiatives, and taking into account the co-benefits of local climate investments in order to better price ‘green capital’. This will foster private investment and expand green capital from billions to trillions.”

“The CCFLA’s ultimate goal is to scale-up the deployment of low-carbon, climate resilient solutions at the sub-national level, and to accelerate investment in them,” said John Tidmarsh, Chief Investment Officer of the R20 Regions of Climate Action and co-host of the CCFLA Secretariat.

“The CCFLA aims to develop a collective and individual awareness of objectives and their enabling factors that will accelerate the value chain of project identification, development and financing. The scoping report is an important early initiative that will help us more rapidly to deliver upon our ambitions.”

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.

“The mapping seeks to be representative of the variety of initiatives that have been recently developed by the CCFLA members to support the localization of climate finance,” said Victor Gancel, Climate-KIC’s Flagship Programme Manager. “Policy makers, cities, developers, public and private investors need practical information about the growing number of initiatives addressing the funding gap for low carbon urban action. This first mapping serves a dual purpose by engaging practitioners and laying out foundations for a global coordination on the urban climate finance challenge.”

Report

Click here to download a pdf version of the CCFLA report

About The Cities Climate Finance Leadership Alliance (CCFLA)

The Cities Climate Finance Leadership Alliance is an alliance of forty seven leading organizations actively working to mobilize investment into low-carbon and climate-resilient infrastructure in cities and urban areas internationally. The CCFLA plays a central role in creating convergence and identifying “gaps” in knowledge, capacity, resources and working practices at subnational and cities levels. CCFLA encourages vertical integration between local, national and international policies and initiatives, as well as horizontal integration across industry, finance, transport and mobility, energy and other sectors. The CCFLA Secretariat is made out of a consortium of four partner organizations, the Global Fund for Cities Development (FMDV), R20-Regions of Climate Action, UN Development Programme (UNDP) and UN Environment Programme (UN Environment).  Climate-KIC is a member of the CCFLA network and developed the CCFLA State of Cities Climate Finance report alongside members of the CCFLA Secretariat.
www.citiesclimatefinance.org

 
Location
Articles you may be interested in
In The News
Climathon 2020: Citizens across the globe are eager to contribute to a post-CO...

Over 4,500 citizens from around the world will join...

Climathon 2020: Citizens across the globe are eager to contribute to a post-COVID sustainable recovery
In The News
Transformative climate action and COP26: Join our webinar

Are you working to deliver transformative change for a...

Transformative climate action and COP26: Join our webinar
In The News
Madrid, Amsterdam and Milan: Three cities putting citizen participation at the...

The Extinction Rebellion or Fridays for Future global actions...

Madrid, Amsterdam and Milan: Three cities putting citizen participation at the heart of climate action
In The News
EIT Climate-KIC selected to become a member of the European Circular Economy S...

EIT Climate-KIC circular economy expert, Cliona Howie, will join...

EIT Climate-KIC selected to become a member of the European Circular Economy Stakeholder Platform
In The News
Partnering with EIT Climate-KIC on the New Accelerator: Call for Expressions o...

We are looking for new and existing EIT Climate-KIC...

Partnering with EIT Climate-KIC on the New Accelerator: Call for Expressions of Interest
In The News
EIT Climate-KIC leads collective efforts to accelerate Madrid’s transition t...

A cross- KIC (Knowledge and Innovation Community) initiative is...

EIT Climate-KIC leads collective efforts to accelerate Madrid’s transition towards carbon neutrality
In The News
New online magazine Branch explores the sustainability of the internet

This week saw the launch of Branch magazine, a...

New online magazine Branch explores the sustainability of the internet
In The News
Four EIT Climate-KIC innovators nominated for EIT Awards

Four EIT Climate-KIC innovators have been nominated to win...

Four EIT Climate-KIC innovators nominated for EIT Awards
In The News
EIT Climate-KIC selected to advise European Commission on sustainable finance

The newly created EU Platform on Sustainable Finance brings...

EIT Climate-KIC selected to advise European Commission on sustainable finance
In The News
bound4blue’s innovative wingsail technology gathers recognition across Europe

Cristina Aleixendri, Co-founder and COO of the Spanish start-up...

bound4blue’s innovative wingsail technology gathers recognition across Europe
In The News
EIT Climate-KIC and Glasgow City Region join forces, helping the region innova...

Home to one third of Scotland’s population and provider...

EIT Climate-KIC and Glasgow City Region join forces, helping the region innovate to become climate resilient
In The News
Cassetex from Bangladesh, Sosei from Uruguay and Carbon Craft Design from Indi...

More than 3,000 entrepreneurs from 56 countries participated in...

Cassetex from Bangladesh, Sosei from Uruguay and Carbon Craft Design from India win the seventh edition of ClimateLaunchpad
In The News
World’s biggest green business ideas competition now fully digital, free and...

The three-day Grand Global Final of the EIT Climate-KIC supported...

World’s biggest green business ideas competition now fully digital, free and accessible to all
In The News
Three cities building back better: Madrid, Milan and Amsterdam

EIT Climate-KIC will host a session at the 18th...

Three cities building back better: Madrid, Milan and Amsterdam
In The News
EIT Climate-KIC to work with Google on Impact Challenge

EIT Climate-KIC is delighted to announce that it will...

EIT Climate-KIC to work with Google on Impact Challenge
In The News
What role can finance play in the green recovery? EIT Climate-KIC and UNEP Fin...

EIT Climate-KIC, in partnership with the UNEP Finance Initiative,...

What role can finance play in the green recovery? EIT Climate-KIC and UNEP Finance Initiative ask leading thinkers to weigh in
In The News
EIT Climate-KIC supports European green recovery with €4 million for start-u...

EIT Climate-KIC is investing €4 million in nine climate...

EIT Climate-KIC supports European green recovery with €4 million for start-ups affected by COVID-19
In The News
The City Finance Lab calls on urban leaders to help build back better

Organised by sustainability expert South Pole, the competition for...

The City Finance Lab calls on urban leaders to help build back better
In The News
EIT Climate-KIC supported cities – Leuven, Milan, Valencia and Vienna no...

Twelve cities are in the final stage of the...

EIT Climate-KIC supported cities – Leuven, Milan, Valencia and Vienna nominated as European Capital of Innovation 2020
In The News
The climate emergency demands bold policy innovations – can cities d...

While the challenges of climate change and a global...

The climate emergency demands bold policy innovations – can cities deliver? 
In The News
EIT Climate-KIC joins circular economy side event at UN High Level Political F...

“Bold leaders are needed to drive a collaborative approach...

EIT Climate-KIC joins circular economy side event at UN High Level Political Forum on Sustainable Development
In The News
EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s la...

EIT Climate-KIC and the Metropolitan Association of Upper Silesia...

EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s largest coal region in the face of the climate crisis
In The News
Anders Wijkman represents EIT Climate-KIC at the International Society for the...

Speaking online at the inaugural Conference of IS4CE—the International...

Anders Wijkman represents EIT Climate-KIC at the International Society for the Circular Economy Conference
In The News
EIT Climate-KIC receives €8.4 million for innovation projects that stimulate...

Eleven climate innovation projects across Europe tackling COVID-19 related...

EIT Climate-KIC receives €8.4 million for innovation projects that stimulate job creation and support a post COVID-19 green recovery
In The News
CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum

On 25 June, EIT Climate-KIC attended the Climate Policy...

CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum
In The News
EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability a...

The LOOP-Ports project, led by the Fundación Valenciaport  and funded by EIT Climate-KIC,...

EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability award
In The News
EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward

On 24 June, EIT Climate-KIC attended the 7th Green...

EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward
In The News
EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s la...

EIT Climate-KIC’s Director of Sustainable Land Use and member...

EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s largest global digital conference on the environment
In The News
EIT Climate-KIC supported Climeworks raises over €67 million to expand its c...

Climeworks, the world leader in capturing CO2 from air,...

EIT Climate-KIC supported Climeworks raises over €67 million to expand its carbon dioxide removal capacities
In The News
EIT Climate-KIC supported Zeleros raises €7 million for the development of h...

EIT Climate-KIC supported Zeleros Hyperloop has completed a financing...

EIT Climate-KIC supported Zeleros raises €7 million for the development of hyperloop in Europe