Urgent call to boost city-focused climate funding in COP30 conference

As the countdown to COP30 begins, the global focus is on scaling up urban climate finance to support greener transportation, energy, and building projects. Here are some strategies being proposed to achieve this:

1. **Expanding Access to Dedicated Finance Mechanisms:** Proposals include expanding access to urban-dedicated finance mechanisms such as the Green Cities Facility within the Green Climate Fund and the Sustainable Cities program of the Global Environment Facility. These resources need to be accessible, standardized, and tailored to the operational realities of municipal governments.

2. **Unlocking Blended Finance:** The goal is to use these resources as levers to unlock blended finance from private capital markets. This is crucial for bridging the financing gap for mitigation and adaptation efforts, which is estimated to be in the trillions of dollars from 2030 to 2050.

3. **Promoting Nature-Based and Circular Economy Systems:** Measures such as wetland restoration, rewilding of degraded areas, permeable pavement, and urban forests are proposed to reduce emissions, curb heat, and enhance livability, particularly for vulnerable populations.

4. **International Coordination and Carbon Markets:** Strengthening international coordination on carbon markets can help channel funding for green projects, including cooperative approaches under Article 6 of the Paris Agreement.

5. **Private Sector Engagement:** There is a growing recognition that the private sector must play a significant role in boosting adaptation finance. However, current evidence suggests this support is still limited compared to expectations, highlighting the need for enhanced engagement strategies.

These strategies aim to ensure that urban climate finance is effectively harnessed and utilized to support sustainable development and climate resilience in cities globally. Notably, development banks pledged US$120 billion in urban infrastructure financing by 2030 at COP29.

COP30, scheduled for November 2022 in Belém, Brazil, also prioritises promoting nature-based and circular economy systems in cities, such as wetland restoration, urban forests, and permeable pavement. These approaches should become the global norm to reduce emissions, curb heat, and enhance livability, especially for the most vulnerable.

Cities generate approximately three-quarters of global greenhouse gas emissions and are crucial for climate action due to their role in decarbonization and innovation. Urban economies generate over 80% of global GDP and consume more than 75% of all energy.

To fast-track nature-positive, climate-resilient urban development, COP30 aims to promote more climate and nature-positive cities through compact urban planning, investments in electrified public transit, expanded cycling and pedestrian infrastructure, and retrofitting buildings.

However, only 23% of the US$800 billion in annual public urban climate finance needed by 2030 has materialized so far. For resources to be effective, they must be accessible, standardized, and tailored to the operational realities of municipal governments.

Leading city networks, such as C40 Cities Climate Leadership Group and the Global Covenant of Mayors for Climate and Energy, are mobilizing thousands of municipalities to ramp up action. The Multisectoral Action Pathways (MAP) Declaration, endorsed by over 160 governments at COP29 in Baku, commits to more inclusive urban planning, sustainable mobility, green jobs, and nature-positive infrastructure.

In conclusion, COP30 in Belém, Brazil, presents an opportunity to accelerate urban climate finance and drive meaningful change towards a greener, more resilient, and sustainable future for cities worldwide.

The Green Cities Facility within the Green Climate Fund and the Sustainable Cities program of the Global Environment Facility, which offer access to urban-dedicated finance mechanisms, should be expanded to be more accessible, standardized, and tailored for municipal governments.
Leveraging resources from urban-dedicated finance mechanisms can help unlock blended finance from private capital markets, as it is crucial for bridging the financing gap for mitigation and adaptation efforts from 2030 to 2050, estimated in the trillions of dollars.
To reduce emissions, curb heat, and enhance livability, particularly for vulnerable populations, nature-based and circular economy systems such as wetland restoration, rewilding of degraded areas, permeable pavement, and urban forests should be implemented.
International coordination and carbon markets, like cooperative approaches under Article 6 of the Paris Agreement, can be strengthened to channel funding for green projects.
The private sector must significantly contribute to boosting adaptation finance, but current evidence indicates that support is still limited compared to expectations, requiring enhanced engagement strategies.
COP30, focusing on promoting nature-based and circular economy systems, aims to develop climate and nature-positive cities by investing in electrified public transit, expanding cycling and pedestrian infrastructure, and retrofitting buildings for sustainable development and climate resilience.