Search Climate Insights Directory

This policy brief examines the supply and demand side barriers to financing climate-smart urban infrastructure, focusing on the role of National Development Banks (NDBs). It introduces a 12-dimension 'City Maturity Model' to help city officials improve their strategic, financial, and operational capacities to attract green investment. The brief highlights that while NDBs are well-positioned as intermediaries, only 4% of Public Development Banks are specifically mandated to finance local governments. It provides recommendations for city officials to engage national policymakers, strengthen revenue capture, and build technical expertise, supported by case studies from Cape Town, Chefchaouen, and Belo Horizonte.

The policy brief argues that National Development Banks (NDBs) are ideal intermediaries for scaling climate-smart urban infrastructure due to their local knowledge, yet few are currently mandated to finance local governments or green projects. The research introduces an NDB Maturity Model consisting of 12 dimensions across strategic, financial, business, and operational parameters to standardize the assessment of NDB capacity. It identifies key barriers including unspecific mandates, lack of sectoral expertise, and insufficient capitalization. The document recommends that International Financial Institutions (IFIs) support NDBs by providing project preparation facilities, technical assistance, and access to innovative capital and de-risking instruments to catalyze private investment.

The document argues that National Development Banks (NDBs) are ideally positioned to bridge the financing gap for climate-smart urban infrastructure due to their local knowledge and proximity to cities. However, it notes that only 4% of Public Development Banks are specifically mandated to finance local governments. The research identifies barriers across policy, institutional, and financial levels—such as restrictive legal structures, lack of bankable project pipelines, and insufficient capitalization. To address these, the authors introduce an 'NDB Maturity Model' consisting of twelve dimensions across strategic, financial, business, and operational parameters. The brief recommends that national ministers update NDB mandates to include climate focus, reassess legal structures to allow for higher risk and longer tenors, and integrate NDBs into national climate goals and infrastructure strategies. A case study on Indonesia's PT SMI and the 'SDG Indonesia One' platform is provided as an example of using blended finance to implement SDG-oriented infrastructure projects.

This policy brief examines the supply and demand barriers preventing National Development Banks (NDBs) from financing green urban infrastructure. It introduces a 12-dimension 'maturity model' across strategic, financial, business, and operational parameters to help NDBs optimize their capacity. The brief argues that while NDBs are ideally positioned as intermediaries, few have the specific mandates or capitalization required to support local governments, necessitating coordinated action from national governments and development finance institutions.

The document identifies systemic barriers to nature-positive infrastructure, including a lack of decision-relevant biodiversity data, limited technical capacity among engineers, and financial models that prioritize short-term returns over long-term ecosystem benefits. It argues for a paradigm shift toward nature-based solutions (NbS) and ecological connectivity, recommending the adoption of standardized metrics like the European Taxonomy and the Task Force for Nature-Related Disclosure (TNFD). The report emphasizes that 'upstream' policy and spatial planning are the most effective levers for change, urging governments to redirect COVID-19 recovery stimulus packages away from fossil-fuel reliant sectors toward sustainable, decarbonized infrastructure.

The document argues that Brazilian municipalities, particularly small and medium-sized ones, face significant credit and technical barriers to financing infrastructure. It proposes the use of Pooled Financial Management Mechanisms (MFGCs) to aggregate demand and reduce risk, drawing on international examples from France, the Nordic countries, Mexico, India, and the Philippines. The brief identifies regulatory hurdles in Brazil, such as the Fiscal Responsibility Law, and recommends updating the legal framework to allow subnational consortia more autonomy in raising funds and improving governance to attract green and sustainable capital.

The document argues that Brazilian municipalities, particularly small and medium-sized ones, face significant financial and regulatory barriers to infrastructure investment. It suggests that subnational consortia can overcome these hurdles by adopting Pooled Finance Mechanisms (PFMs)—such as club deals, aggregation platforms, and bond banks—to access capital markets and attract green investment. The brief identifies a USD 1.3 trillion green investment opportunity in Brazil and recommends updating Law 11,107/2005 and the Law of Fiscal Responsibility to facilitate autonomous fundraising and improve governance for public consortia.

The Nature4Cities Latam project is a 24-month readiness initiative designed to address barriers to the adoption of Nature-based Solutions (NbS) in six selected secondary cities across Cuba, Ecuador, Honduras, and the Dominican Republic. The project focuses on strengthening the knowledge base, reinforcing policy frameworks, fostering private sector partnerships, and developing innovative climate finance strategies. Key deliverables include city-level vulnerability and GHG assessments, Nature-Based Urban adaptation and mitigation Plans, and a regional online platform for knowledge sharing. The initiative aims to transition from pilot assessments to a pipeline of fundable project concept notes for the Green Climate Fund.

The African green bond market is nascent and underdeveloped, with cumulative issuances of less than 1% of global volumes between 2012 and 2019. While South Africa, Morocco, and Nigeria lead the drive through national frameworks and issuances, the market faces significant barriers including a lack of technical capacity, insufficient supporting regulation, and a dearth of fiscal incentives. As of October 2019, 17 bonds totaling over US$2 billion had been issued across six states, with approximately 35% being climate certified. Opportunities for growth lie in greening infrastructure and sustainable urban development, provided that local conditions are reflected in guidelines and project pipelines are improved.

The report examines urban flooding in five cities across Ghana, South Africa, and Kenya, highlighting the vulnerability of informal settlements to climate-exacerbated rainfall and poor urban planning. It compares the maturity of South African cities in integrating EbA into policy against the more response-oriented, 'grey' infrastructure bias in Kenyan cities. Key findings emphasize that collaborative, whole-of-society governance and the integration of green and grey infrastructure are most effective for long-term resilience.

The report analyzes economic stimulus measures in the Brazilian Legal Amazon during the COVID-19 pandemic, finding that 87.2% of the R$ 54 billion in identified funds had a negative impact on natural capital, primarily due to subsidies for large-scale agribusiness. Only 9.7% of funds were directed toward positive impacts, such as family farming and low-carbon agriculture. The document concludes that the federal government missed an opportunity for a 'green recovery,' leading Amazonian state governors to launch the Green Recovery Plan (PRV) to prioritize deforestation control, sustainable production, green technology, and green infrastructure.

The document advocates for the US to lead global efforts in nature conservation and climate action. Key priorities include doubling investments in biodiversity programs, reducing US emissions by 50% by 2030, and protecting 30% of lands and waters by 2030. It also emphasizes pandemic prevention through the 'One Health' approach, combating illegal trade in wildlife and timber, and addressing plastic pollution through a binding international treaty.

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.

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.

The document proposes a federal, state, and local coordinated infrastructure strategy focused on six sectors—mobility, buildings, power, broadband, water, and natural systems—to create a more resilient and equitable America. It emphasizes that cities are essential for the design and delivery of these projects due to their capacity for innovation and understanding of local needs.

The author argues that environmental racism and a decline in federal funding since the 1970s have created severe disparities in water access for Latino, Black, and Indigenous communities in the US. The text highlights the vulnerability of these populations to climate-driven disasters, such as hurricanes and wildfires, and calls for Congress to implement water affordability protections, prohibit shutoffs, and invest in green infrastructure and wastewater system repairs, prioritizing areas like the San Joaquin Valley, Puerto Rico, and the Navajo Nation.

The petition argues that New York City's community gardens provide essential public health, environmental, and social benefits, yet remain vulnerable to development due to a lack of legal protections. It requests the designation of forty specific gardens as Critical Environmental Areas (CEAs) and a broader assessment to grant CEA status to all City-owned gardens. The document details how these spaces mitigate urban heat and flooding, improve food security in 'food deserts', and support mental health and social cohesion, particularly in marginalized Black and Latinx communities.

The document argues that large-scale investment in natural infrastructure lags because research often focuses on broad valuations rather than specific business cases. It proposes a five-step approach for project champions—starting with a driver, identifying a lead beneficiary, developing a pitch, establishing partnerships, and securing catalyst funding—to bridge the gap between feasibility and finance. For funders, it recommends supporting targeted research, convening beneficiaries, helping projects achieve scale, and providing dedicated predevelopment support.

The paper advocates for a shift from public-private partnerships (PPPs) to an 'infrastructure business' model based on stewardship. It suggests that PPPs lack the flexibility needed for a changing world, citing the efficiency of PAYGO solar systems over traditional grids. To ensure these businesses align with community needs, the author proposes four management tools: requiring periodic master plans, using impact management frameworks like the Impact Management Project (IMP), ensuring independence in decision-making, and enhancing accountability through open data and transparency initiatives such as CoST and GRESB.

The report outlines 30 federal policy recommendations to improve coastal resilience in the United States, emphasizing community-led planning, nature-based solutions, and equitable financing. It argues that federal policies must shift from relying on past climate data to anticipating future conditions, particularly for infrastructure and land use. Key priorities include integrating climate justice, supporting tribal sovereignty in adaptation planning, and reforming benefit-cost analysis tools to better value social and environmental outcomes. The document also advocates for the creation of a national 'green bank' and a federal climate heritage coordination office to manage the intersection of cultural preservation and climate change.