Urban Climate Finance in the Wake of COVID-19

This policy brief examines the allocation of COVID-19 recovery funds to cities, noting a significant gap between global pledges and city-specific commitments, and provides recommendations to improve the accessibility and effectiveness of green urban recovery finance.

• Of the USD 20.5 trillion pledged globally for COVID-19 recovery, only USD 1.1 trillion has been committed to cities. Within this city-specific funding, USD 916 billion was allocated to short-term liquidity, while USD 194 billion comprises the remaining funds.
• Funding for cities is transitioning from immediate, short-term liquidity assistance toward longer-term recovery strategies. However, a significant portion of the USD 1.1 trillion pledged to cities has not yet been programmed by sector or geography.
• To overcome barriers in providing direct funding to cities and addressing diverse sectoral needs, the brief recommends structuring financial instruments for direct city access, collaborating with climate-specific institutions, utilizing project preparation facilities (PPFs) to improve investment readiness, and leveraging networks like the Cities Climate Finance Leadership Alliance.

APA

Climate Policy Initiative (2020). Urban Climate Finance in the Wake of COVID-19. https://www.climatepolicyinitiative.org/publication/urban-climate-finance-in-the-wake-of-covid-19/

Chicago

Climate Policy Initiative. Urban Climate Finance in the Wake of COVID-19. 2020. https://www.climatepolicyinitiative.org/publication/urban-climate-finance-in-the-wake-of-covid-19/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Urban Climate Finance in the Wake of COVID-19 |date=14 December 2020 |url=https://www.climatepolicyinitiative.org/publication/urban-climate-finance-in-the-wake-of-covid-19/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020urban, author = {{Climate Policy Initiative}}, title = {{Urban Climate Finance in the Wake of COVID-19}}, institution = {Climate Policy Initiative}, year = {2020}, month = dec, url = {https://www.climatepolicyinitiative.org/publication/urban-climate-finance-in-the-wake-of-covid-19/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }