Urban Climate Finance in the Wake of COVID-19

The document analyzes COVID-19 recovery funding for cities, noting that while USD 1.1 trillion was pledged, the vast majority (USD 916 billion) targeted short-term liquidity rather than long-term climate resilience. It identifies gaps in funding programming and recommends that funders structure instruments for direct city access, utilize project preparation facilities, and leverage city networks to bridge the investment gap for green infrastructure.

• Of the USD 20.5 trillion pledged globally for COVID-19 recovery as of October 25, 2020, only USD 1.1 trillion was committed to cities, with the vast majority being short-term support.
• Non-liquidity funding for cities is distributed across three time horizons, with long-term support—focused on 'building back better' through retrofits and sustainable transport—making up 48% of commitments.
• A significant portion of pledged recovery funds remains unprogrammed, with 40% of total funding designated as global or multi-region, offering an opportunity for cities to influence their allocation.
• Development Finance Institutions (DFIs) provide a substantial share of non-liquidity assistance (USD 54 billion), with the largest sectoral allocation going to integrated green infrastructure (38%).
• National government funding is dominated by developed countries, with the European Union pledging that 25% of its COVID-19 stimulus package will focus on climate resilience.
• Private sector contributions have primarily focused on immediate humanitarian responses, with very few initiatives specifically targeting urban climate finance.
• Cities face significant barriers to accessing finance due to limited borrowing capacity and the fact that most international public development finance is channeled through national governments via sovereign loans.

APA

Lonsdale, A., Negreiros, P., & Yang, K. (2020). Urban Climate Finance in the Wake of COVID-19. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/12/Urban-Climate-Finance-in-the-Wake-of-COVID-19-3.pdf

Chicago

Lonsdale, Amanda, Priscilla Negreiros, and Kristiina Yang. Urban Climate Finance in the Wake of COVID-19. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/12/Urban-Climate-Finance-in-the-Wake-of-COVID-19-3.pdf.

Wikipedia

{{cite report |last1=Lonsdale |first1=Amanda |last2=Negreiros |first2=Priscilla |last3=Yang |first3=Kristiina |title=Urban Climate Finance in the Wake of COVID-19 |publisher=Climate Policy Initiative |date=December 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/12/Urban-Climate-Finance-in-the-Wake-of-COVID-19-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lonsdale2020urban, author = {Lonsdale, Amanda and Negreiros, Priscilla and Yang, Kristiina}, title = {{Urban Climate Finance in the Wake of COVID-19}}, institution = {Climate Policy Initiative}, year = {2020}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/12/Urban-Climate-Finance-in-the-Wake-of-COVID-19-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }