Cities Climate Finance Leadership Alliance
The Alliance is a coalition of leaders committed to deploying finance for city level climate action at scale by 2030. We serve as the only multi-level and multi-stakeholder coalition aimed at closing the investment gap for urban and subnational climate projects and infrastructure worldwide.
Description
The Cities Climate Finance Leadership Alliance (The Alliance) is a coalition of leaders committed to deploying finance for city-level climate action at scale by 2030. Trillions of dollars will be required to help cities build the low-emissions, resilient infrastructure necessary to combat and react to climate change. Yet, finance for sustainable infrastructure in cities is a challenge with estimates showing only 10 to 30% of climate finance being invested in urban-focused projects.
Launched at the United Nations Secretary General’s Climate Summit in September 2014 and renewed at the United Nations Secretary General’s Climate Summit in September 2019, the Cities Climate Finance Leadership Alliance is the only multi-level and multi-stakeholder coalition committed to closing the investment gap for urban subnational climate projects and infrastructure worldwide.
It is estimated that 70% of the population will live in cities by 2050. Cities are responsible for 70% of global emissions and as much as 90% of coastal areas (where several cities are located) will experience above-average sea-level rise, several of them exposed to the risk posed increases in the frequency and intensity of natural events. In the next 15 years, we estimate that USD93 trillion will be needed for sustainable infrastructure spending. By taking part in the Alliance, and by contributing expertise, access to networks, and funding, our members have committed to working together to bridge demand and supply for sustainable climate friendly and resilient finance at the subnational level.
The Alliance’s contributions focus on four areas: a) build awareness of city finance needs and opportunities, b) craft a strong global architecture to support measurement and evaluation, c) identify existing solutions and gaps in city-level climate-related finance, and d) support investment solutions that fill crucial gaps in cities climate finance.
Did the Sendai Framework change or contribute to changes in your activities/organization? If so, how?
The Sendai Framework for Disaster Risk Reduction 2015-2030, the global plan for reducing disaster losses, and the 2030 Agenda for Sustainable Development share a common goal: the resilience of communities and nations is a key requirement for sustainable economic and social development. We find encouragement in the Sendai Framework’s call to enhance access of States, in particular low-and-middle income countries, to finance, environmentally sound technology, science and inclusive innovation, as well as knowledge and information sharing through existing mechanisms, namely bilateral, regional and multilateral collaborative arrangements.
What led you to make this commitment/initiative?
What was your position before making this Voluntary Commitment / prior to the Sendai Framework?
Approximately 70% of global CO2 emissions originate from urban areas, a staggering figure that is set to increase as an estimated 3 billion people shift from rural to urban areas by 2050.
As the world rapidly urbanizes, cities will need to transition to low-emissions, climate-resilient infrastructure. Finance is key to implementing this transition. In fact, the Global Commission on the Economy and Climate estimates that the world will need to invest roughly USD 93 trillion in sustainable infrastructure over the next 15 years, 70% of which is likely to be in urban areas, or to serve mostly urban dwellers.
However, current infrastructure spending in urban areas stands at USD 2.5-3 trillion per year, which is just half of the need.
Deliverables and Progress report
Deliverables
Deliverables are the end-products of the initiative/commitment, which can include issuance of publications or knowledge products, outcomes of workshops, training programs, videos, links, photographs, etc.
Leadership for Urban Climate Investment (LUCI) is a framework that elevates and tracks commitments made by Cities Climate Finance Leadership Alliance (the Alliance) member initiatives, helping them to implement bold and effective targets. The LUCI framework enables these ambitious targets by catalyzing action along the entire value chain of subnational climate finance from project conception through financing.
Hosted by the Alliance, LUCI was initiated by a multi-stakeholder coalition led by the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU) at the UN SG Climate Summit in 2019.
LUCI will strengthen the capacity of 2000 cities in project preparation, creating 1000 bankable climate-smart urban projects by 2025 while building new, innovative financing mechanisms.
The Enabling Frameworks Action Group was launched in January 2020. The group seeks to strengthen national legal, regulatory, and policy frameworks that can boost climate finance for cities.
The Financial Toolbox Action Group was launched in January 2020. The goal of the Financial Toolbox AG is to collaboratively advance identification and deployment of financial instruments that can help to scale climate finance in cities.
The Project Preparation Action Group, launched in July 2016, supports the Alliance’s members in identifying, coordinating and accelerating existing Preparation Facilities (PPFs) for low-carbon and climate-resilient urban infrastructure projects. It focuses on enabling implementation, supporting local metropolitan and regional governments and their partners to build capacity and to scale up planning, project preparation and financing of their projects. The Action Group also plans raise awareness on the value of Project Preparation Facilities, as well as accelerate replication and innovation; and finally encourage and promote greater cooperation between the Alliance members involved in such mechanisms.
Trillions of dollars will be required to help cities build the low-emissions, resilient infrastructure necessary to combat and react to climate change. The Cities Climate Finance Leadership Alliance is the only multi-level and multi-stakeholder coalition aimed at closing the investment gap for urban subnational climate projects and infrastructure worldwide.
Does your city need funding for climate-friendly projects?
The Green City Finance Directory helps subnational governments and stakeholders identify project preparation facilities that can support them in developing green and resilient infrastructure, including implementing more efficient heating and cooling systems, building renewable energy, setting up sustainable transit, or climate-proofing resilient infrastructure.
Our publications build awareness of city finance needs and opportunities, identify existing solutions and gaps, and promote investment solutions in cities climate finance.
Organizations and focal points
Implementing Organization(s)
Focal points
Partners
- Gold Standard
- Global Development Incubator
- FMDV
- Church Investment Group
- Children's Investment Fund Foundation
- West African Development Bank
- Climate Group
- Sustainable Infrastructure Foundation
- Resilient Cities Catalyst
- Regions of Climate Action
- The Penn Institute for Urban Research
- Meridiam
- Long Term Infrastructure Investors Association
- Green Finance Institute
- Argentine Network of Municipalities Against Climate Change
- Bloomberg Philantropies
- Atlantic Council
- Asian Infrastructure Investment Bank
- Resilient Cities Network
- Global Infrastructure Facility
- Covenant of Mayors for Climate and Energy
- Global Infrastructure Basel Foundation
- Climate and Clean Air Coalition
- Deutsche Bank
- Bank of America Corporation
- Climate Bonds Initiative
- South Pole Group
- Standard & Poor's Financial Services LLC
- Lincoln Institute of Land Policy
- Green Climate Fund
- Climate-KIC, European Institute of Innovation and Technology
- United Nations Development Programme (UNDP)
- Swiss State Secretariat for Economic Affairs
- Carbon Disclosure Project
- C40 Cities Secretariat
- Agence Française de Développement
- European Investment Bank
- Climate Investment Funds
- Commonwealth Local Government Forum Pacific Project
- KfW Bankengruppe
- Global Environment Facility
- United Nations Capital Development Fund
- Citi Foundation, Citigroup
- Congo, Democratic Republic of the - government
- France - government
- United Cities and Local Governments (UCLG)
- African Development Bank
- Federal Ministry for Economic Cooperation and Development
- United Nations Office for Disaster Risk Reduction (UNDRR)
- Federal Ministry for the Environment, Nature Conservation and Nuclear Safety
- United Nations Human Settlements Programme (UN-HABITAT)
- World Wide Fund For Nature
- Organisation for Economic Co-operation and Development
- Inter-American Development Bank (IDB)
- Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
- European Bank for Reconstruction and Development
- World Resources Institute
- ICLEI - Local Governments for Sustainability
- Andean Development Corporation
- World Bank, the
- United Nations Environment Programme (UNEP)
