Financial Aggregation for Cities

This policy brief discusses the barriers cities face in accessing climate finance and proposes financial aggregation as a strategy to scale up investment for urban climate mitigation and adaptation.

• Cities are critical for climate action as they house the majority of the global population and economic activity, and are responsible for roughly 75% of global greenhouse gas emissions.
• Urban areas encounter several obstacles when attempting to secure climate finance, including poor municipal creditworthiness, weak regulatory, fiscal, and governance systems, risks related to interest and forex rates, inadequate revenue collection, high upfront costs, technological risks, and jurisdictional or organizational constraints.
• Financial aggregation is proposed as a strategy to increase urban climate finance, defined as the use of enterprises or instruments that combine projects, participants, sectors, or investments. This can occur on the supply-side (grouping finance providers) or the demand-side (combining the borrowing or purchasing power of consumers, operating companies, and project developers).

APA

Climate Policy Initiative (2022). Financial Aggregation for Cities. https://www.climatepolicyinitiative.org/publication/financial-aggregation-for-cities/

Chicago

Climate Policy Initiative. Financial Aggregation for Cities. 2022. https://www.climatepolicyinitiative.org/publication/financial-aggregation-for-cities/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Financial Aggregation for Cities |date=28 June 2022 |url=https://www.climatepolicyinitiative.org/publication/financial-aggregation-for-cities/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022financial, author = {{Climate Policy Initiative}}, title = {{Financial Aggregation for Cities}}, institution = {Climate Policy Initiative}, year = {2022}, month = jun, url = {https://www.climatepolicyinitiative.org/publication/financial-aggregation-for-cities/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }