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This executive summary of the 2021 State of Urban Climate Financing report, produced by the Cities Climate Finance Leadership Alliance with World Bank contributions, analyzes global urban climate investment flows, identifies significant funding gaps—particularly in developing nations—and proposes a framework of 'enabling conditions' to mobilize the trillions of dollars needed for low-carbon and climate-resilient urban development.

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  • Annual urban climate funding for the 2017/2018 period averaged approximately 384 billion USD, which is significantly lower than the estimated requirement of 4.5 to 5.4 trillion USD per year.
  • Urban climate finance is heavily concentrated in OECD countries and China, leaving developing regions severely underfunded. Annual investments in South Asia and Sub-Saharan Africa averaged only 4 billion USD and 3 billion USD, respectively.
  • There is a stark imbalance between mitigation and adaptation funding. Mitigation investments averaged 375 billion USD (2017/2018), while adaptation and resilience investments averaged 7 billion USD, representing only 9% of tracked project-level data.
  • Private funding, particularly household spending on electric vehicles and building energy efficiency, accounted for an estimated 136 billion USD annually (35% of total urban climate finance) during 2017/2018. Public sector investment averaged 84 billion USD (22%), while 45% of total funding sources remain unknown.
  • The International Finance Corporation (IFC) identifies a sustainable urban investment opportunity of 2.5 trillion USD per year until 2030 in emerging markets across six sectors: waste, climate-smart water, renewable energy, electric vehicles, public transport, and green buildings.
  • Mobilizing urban climate finance depends on three 'enabling conditions': country-specific factors (national governance and fiscal systems), city-specific factors (planning and financing capacity), and climate-specific factors (linking investments to appropriate climate funding instruments).
  • The COVID-19 pandemic has strained urban finances, forcing cities to prioritize social protection and health over climate action, creating a risk of 'carbon-intensive lock-in' particularly in rapidly urbanizing areas of Africa and South Asia.

Cite the original document

APA
Climate Policy Initiative (2021). Kondisi Pendanaan Iklim Kota. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Bahasa.pdf
Chicago
Climate Policy Initiative. Kondisi Pendanaan Iklim Kota. 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Bahasa.pdf.
Wikipedia
{{cite report |author=Climate Policy Initiative |title=Kondisi Pendanaan Iklim Kota |date=June 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Bahasa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{climatepolicyinitiative2021kondisi, author = {{Climate Policy Initiative}}, title = {{Kondisi Pendanaan Iklim Kota}}, institution = {Climate Policy Initiative}, year = {2021}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Bahasa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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