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The 2021 report by the Cities Climate Finance Leadership Alliance (CCFLA) finds that annual urban climate finance averaged US$ 384 billion in 2017/2018, which is significantly lower than the estimated requirement of US$ 4.5 to 5.4 trillion. Investment is heavily concentrated in OECD countries and China, with severe underfunding in Sub-Saharan Africa and South Asia. Mitigation efforts, particularly in sustainable transport and buildings, dominate the funding landscape, while adaptation and resilience receive less than 10% of project-level finance. The report emphasizes that cities act as both providers of infrastructure and administrators of regulations, and recommends strengthening municipal financial capacities, aligning local and national climate policies, and utilizing blended finance to bridge the investment gap.

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  • Annual urban climate finance was estimated at an average of US$ 384 billion for 2017/2018, which is far below the estimated need of US$ 4.5 to 5.4 trillion per year for a transition to sustainable cities.
  • Climate finance for cities is geographically concentrated in OECD nations and China, leaving developing regions like South Asia and Sub-Saharan Africa with critically low average annual investments of US$ 4 billion and US$ 3 billion, respectively.
  • There is a significant imbalance between mitigation and adaptation funding; mitigation investments averaged US$ 375 billion in 2017/2018, while adaptation and resilience funding averaged US$ 7 billion, representing less than 10% of project-level tracked data.
  • Private finance, largely driven by domestic spending on electric vehicles and residential energy efficiency, accounted for 35% (US$ 136 billion) of total urban climate finance in 2017/2018, while public investment contributed 22% (US$ 84 billion).
  • The International Finance Corporation (IFC) identifies US$ 29.4 trillion in climate investment opportunities by 2030 in emerging market cities across six sectors: waste, climate-smart water use, renewable energy, electric vehicles, public transport, and sustainable buildings.
  • Cities can mobilize climate finance by acting as providers (through sustainable procurement and resource mobilization like impact fees) and as administrators (through regulations, standards, and systemic planning).

Cite the original document

APA
Climate Policy Initiative (2021). O Estado do Financiamento Climático das Cidades. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Portuguese.pdf
Chicago
Climate Policy Initiative. O Estado do Financiamento Climático das Cidades. 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Portuguese.pdf.
Wikipedia
{{cite report |author=Climate Policy Initiative |title=O Estado do Financiamento Climático das Cidades |date=June 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Portuguese.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{climatepolicyinitiative2021estado, author = {{Climate Policy Initiative}}, title = {{O Estado do Financiamento Climático das Cidades}}, institution = {Climate Policy Initiative}, year = {2021}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/06/Executive-Summary-Portuguese.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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