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
Opinion
If we have figured out transformation, why is the world still in such a mess?
Susannah Fisher Research, EIT-Climate-KIC
If we have figured out transformation, why is the world still in such a mess?
Opinion
The tyranny of categorisation
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
The tyranny of categorisation
Opinion
EIT Climate-KIC strengthens biodiversity through systems change
Felicity Spors Head of International Affairs, EIT Climate-KIC
EIT Climate-KIC strengthens biodiversity through systems change
Opinion
Why our cities must act as beacons for ambitious climate action
Tom Mitchell Chief Strategy Officer, EIT Climate-KIC
Why our cities must act as beacons for ambitious climate action
In The News
Biggest-ever global hackathon to tackle climate breakdown

Over 100 Climathon events around the world turn grassroots...

Biggest-ever global hackathon to tackle climate breakdown
In The News
Global call for transformative solutions to tackle the climate emergency

EIT Climate-KIC launches Climathon Global Awards and Healthy, Clean...

Global call for transformative solutions to tackle the climate emergency
In The News
EIT Climate-KIC supported crop insurance project acquired by world’s largest...

The insurance sector is well aware of the rising...

EIT Climate-KIC supported crop insurance project acquired by world’s largest re-insurer
In The News
EIT Climate-KIC innovators celebrated at 2019 EIT Awards

The European Institute of Innovation and Technology (EIT) has...

EIT Climate-KIC innovators celebrated at 2019 EIT Awards
Opinion
Part three: Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Part three: Climate action #NotinNewYork
In Detail
New EIT Climate-KIC supported report finds digital technologies can vastly a...

As part of the UN Climate Action Summit, the Global Enabling Sustainability Initiative (GeSI) and Deloitte launched a report today, supported by EIT Climate-KIC,...

New EIT Climate-KIC supported report finds digital technologies can vastly accelerate the SDGs
Opinion
Part two: Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Part two: Climate action #NotinNewYork
Opinion
Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Climate action #NotinNewYork
In The News
Circular Cars Initiative launched at United Nations Climate Action Summit

On the occasion of the United Nations Climate Action...

Circular Cars Initiative launched at United Nations Climate Action Summit
In The News
We’re closing for business in solidarity with #ClimateStrike

EIT Climate-KIC will close this Friday 20 September, the...

We’re closing for business in solidarity with #ClimateStrike
In The News
Open Innovation Call targeting air quality and urban heat island effect launch...

The City of Copenhagen’s department Resilient and Sustainable City Solutions within...

Open Innovation Call targeting air quality and urban heat island effect launched
In The News
EIT Climate-KIC cleantech start-up ZOLAR attracts 10 Million Euro Investment

The Berlin-based start-up Zolar raises a 10 million EUR...

EIT Climate-KIC cleantech start-up ZOLAR attracts 10 Million Euro Investment
In The News
Breaking down barriers to climate-finance: the City Finance Lab launches secon...

Competition for the five most innovative financing solutions for...

Breaking down barriers to climate-finance: the City Finance Lab launches second call for proposals
Opinion
Innovating in complexity: Systemic investing
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Innovating in complexity: Systemic investing
In The News
Climathon onboard ‘Sail to the COP’

On 2 October, 36 young climate change agents will...

Climathon onboard ‘Sail to the COP’
In The News
Research reveals surprising link between socio-economic indicators and sustain...

A new study by EIT Climate-KIC partner academic institutions...

Research reveals surprising link between socio-economic indicators and sustainability transition
Opinion
Transformation capital: A new investment logic for catalysing systems change
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Transformation capital: A new investment logic for catalysing systems change
Opinion
Innovating in complexity: From single-point solutions to directional systems innovation
Dominic Hofstetter TRANSFORMATION CAPITAL, EIT CLIMATE-KIC
Innovating in complexity: From single-point solutions to directional systems innovation
In The News
Four EIT Climate-KIC innovators nominated for annual EIT Awards

The European Institute of Innovation and Technology (EIT) has released...

Four EIT Climate-KIC innovators nominated for annual EIT Awards
In Detail
Report offers recommendations for development of agricultural impact tool

A new report supported by EIT Climate-KIC’s CSA Booster programme proposes technical, governance and business arrangements for the development of a new tool for...

Report offers recommendations for development of agricultural impact tool
In Detail
Food value chains strategy report offers recommendations based on systemic i...

A new report details the work of EIT Climate-KIC and its partner Metabolic, a consulting company using systems thinking to tackle major sustainability challenges,...

Food value chains strategy report offers recommendations based on systemic impact
In The News
EIT Climate-KIC supports digital roadmap for a circular economy

EIT Climate-KIC, along with several European stakeholders, is advocating...

EIT Climate-KIC supports digital roadmap for a circular economy
In The News
EIT Climate-KIC urges London to lead in turning climate emergency into action

Climate innovation agency EIT Climate-KIC welcomed today the first...

EIT Climate-KIC urges London to lead in turning climate emergency into action
Opinion
London Climate Action Week: Climate Innovation Insights
London Climate Action Week: Climate Innovation Insights
Opinion
How can we deliver a net-zero emissions UK?
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
How can we deliver a net-zero emissions UK?
Opinion
Can we identify the tipping points for transformative climate action?
Susannah Fisher Strategic Research Lead, EIT Climate-KIC
Can we identify the tipping points for transformative climate action?