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The 2021 State of Cities Climate Finance report finds that annual urban climate finance averaged USD 384 billion in 2017/2018, which is significantly lower than the estimated annual need of USD 4.5 to 5.4 trillion. Investment is heavily concentrated in OECD countries and China, leaving developing regions like Sub-Saharan Africa and South Asia severely underfunded. The report emphasizes a critical gap in adaptation and resilience finance, which accounts for less than 10% of urban climate finance. To bridge this gap, the report recommends strengthening municipal finance capacities, aligning city and national climate policies, and utilizing innovative financial instruments like blended finance and green procurement.

The 2021 report on the state of urban climate finance reveals a significant gap between current investments and the trillions of dollars needed for urban climate action. While global urban climate funding averaged 384 billion USD per year in 2017/2018, these flows are heavily concentrated in OECD countries and China, leaving rapidly urbanizing areas in Sub-Saharan Africa and South Asia severely underfunded. The report emphasizes that mitigation efforts, particularly in transport and buildings, dominate current spending, while adaptation and resilience receive less than 10% of funding. To bridge this gap, the document outlines 'enabling conditions' across national, city, and climate-specific levels, urging a systemic approach to align planning, budgeting, and policy to attract both public and private investment.

The report finds that while urban climate finance averaged 384 billion USD annually in 2017/18, this is far below the estimated annual need of 4.5 to 5.4 trillion USD. Funding is heavily concentrated in OECD countries and China, with severe deficits in developing regions like Sub-Saharan Africa and South Asia, and a critical lack of investment in adaptation and resilience, which accounts for less than 10% of tracked project data. The document argues that cities must act as both 'providers' of green infrastructure and 'guardians' of regulatory standards to attract private and public capital, requiring stronger alignment between municipal and national climate policies.

The document explores low- and zero-emissions zones (LEZs and ZEZs) as tools for cities to reduce air pollution and greenhouse gas emissions. It compares international examples from Europe and Singapore with a voluntary pilot in Santa Monica, California. A significant portion of the guide is dedicated to ensuring equity, arguing that ZEZs in California must be designed to avoid regressive financial burdens on low-income residents and people of color, who are disproportionately exposed to vehicle-related PM2.5 pollution. The authors recommend that California provide enabling legislation for cities to implement these zones and suggest targeting high-pollution sectors, such as heavy-duty freight, to maximize public health benefits in disadvantaged communities.

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 Sub-national Climate Finance Initiative (SnCF) is designed as a blended finance private equity fund paired with a grant-funded Technical Assistance Facility (TAF) to support mid-sized sustainable infrastructure in developing countries. The Fund targets a total raise of USD 750 million, consisting of a USD 150 million concessional tranche and USD 600 million in commercial capital, aiming to invest in sustainable energy, waste and sanitation, and nature-based solutions. The TAF, targeting USD 28 million, focuses on project preparation, impact certification via Gold Standard, and local government capacity building. The initiative aims to mobilize up to USD 3.8 billion in total finance, with a target of 35-50 projects across up to 20 countries. Key target markets identified include Chile, South Africa, North Macedonia, Mexico, and Jordan. The Fund projects a net IRR of 9.4% for commercial investors and 5.4% for the concessional tranche, with a goal to avoid 77 million tonnes of CO2 equivalent over the infrastructure lifetime.

The document highlights a significant gap in climate action and finance regarding sanitation, noting that while the IPCC identifies sanitation as a key measure for reducing climate vulnerability, it is largely absent from Nationally Determined Contributions (NDCs) and climate funding. It examines how sanitation systems contribute to greenhouse gas emissions, particularly methane from anaerobic decomposition, and suggests that shifting from pit latrines to composting toilets or biogas systems can mitigate these impacts. The brief recommends improving research on climate-sanitation links, adapting planning frameworks like the WHO Sanitation Safety Planning approach, and increasing the capacity of sector stakeholders to mobilize climate finance.

WRI supported the procurement of electric bus fleets in Santiago, Bogotá, and Medellín to reduce emissions and operating costs. By developing scalable contractual and procurement mechanisms with partners like C40 and the Inter-American Development Bank, WRI helped these cities overcome the high upfront costs of e-buses. Santiago and Bogotá are procuring the two largest e-bus fleets globally outside of China, with Medellín adding 64 vehicles.

The report evaluates COP25 as a failure in meeting the global call for increased climate ambition, noting a disconnect between mass mobilizations and the lack of urgency among negotiating Parties. While it highlights progress in gender-related frameworks and the establishment of the Santiago network for loss and damage, it emphasizes significant failures in integrating human rights and indigenous protections into Article 6 carbon market rules and the Warsaw International Mechanism. The document concludes by identifying 2020 advocacy opportunities to ensure human rights safeguards are embedded in NDCs and carbon trading modalities.

The document presents a data table comparing emission standards (LDV), gasoline octane levels, refinery counts, import percentages, and sulfur content in gasoline and diesel for various countries in Latin America and the Caribbean. Key data points include Chile's transition to Euro 6 by 2022, Colombia's target of Euro 6 by 2030, and specific sulfur limits ranging from 15 ppm in Mexico to 8000 ppm in Cuba.

The statement highlights the failures of the UN Clean Development Mechanism (CDM) through examples of hydroelectric projects in Chile and Panama that caused environmental destruction and human rights violations. It calls for mandatory stakeholder consultations and independent grievance redress mechanisms in future carbon markets under the Paris Agreement to ensure a just transition.

The author asserts that a just transition is impossible without 'radical collaboration' across sectors, highlighting the need to bridge the gap between climate action and social justice. The text emphasizes that while many governments have committed to a just transition, policy and investment are lagging. It advocates for partnerships between employers, unions, and governments to create decent green jobs that respect labor rights, noting that businesses must act on their accountability to all stakeholders to avoid worsening conditions for workers and communities during the shift to net-zero.

The document calls for COP-25 to prioritize human rights, gender equality, and increased national ambition in climate commitments, while warning against the use of carbon offsets and the marginalization of Global South participants due to the conference's relocation from Santiago to Madrid.

The IAI Executive Directorate is implementing a multifaceted approach to improve the provision of scientific information to governments in the Americas. This includes drafting procedural regulations for the Science-Policy Advisory Committee (SPAC), establishing links with multilateral environmental agreements, and strengthening the capacity of member states to integrate science into public policy. The report highlights the conclusion of the third round of Cooperative Research Networks (CRN3), detailing how specific projects on nitrogen cycles, tropical dry forests, water security, and marine ecosystems have influenced national policies and management plans in countries such as Brazil, Uruguay, Chile, and Mexico.

The IAI Directorate is implementing Phase One of its Long-Term Funding Strategy, which focuses on planning, preparation, and identifying potential donors across philanthropy, entertainment, politics, and technology sectors. Key efforts include seeking 501(c)(3) tax-exempt status in the United States to facilitate external funding and pursuing 'Readiness Delivery Partner' status with the Green Climate Fund to support member countries. The IAI is also engaging in strategic partnerships, such as a climate resilient governance program for megacities in South America involving Argentina, Brazil, and Chile, and a global project on climate change and migration (SOURCES) led by the University of Amsterdam.

The IAI Executive Directorate reports on its five-year communication plan to better integrate scientific data into policy. Key achievements include a MOOC reaching 10,000 participants, a significant increase in social media engagement, and collaborations with UN agencies (UNOSSC, UNFCCC) on publications regarding urban climate management and coastal loss and damage. The IAI also produced eight synthesis reports on regional environmental issues and held high-level events at COP-24 and the AGU Centennial.

The IAI Directorate's report details the implementation of the IAI Long-Term Communications Strategy and Plan, focusing on increasing public awareness and providing scientific data to policymakers. Key activities include joint publications with UN agencies, the development of project briefs on climate and environmental issues, and the use of social media and online courses to disseminate research findings.

The report proposes the PAYS for Clean Transport instrument to address the high upfront costs of electric buses, which can be up to 40% higher than diesel alternatives. Under this model, utilities invest in batteries and charging infrastructure and recover costs through a fixed charge on the bus service provider's (BSP) electric bill. This approach shifts capital expenditure from the BSP's balance sheet to a monthly operating expense, reducing the need for grants and leveraging private finance. Modeling for a 100-bus fleet in Santiago, Chile, indicates that PAYS can make electric buses cheaper than diesel over their lifecycle and leverage over 70 dollars of private investment for every grant dollar provided.

The IAI Directorate Science reports on the final phase of the third Collaborative Research Network (CRN3), the launch of the Small Grant Program on ecosystem services and human wellbeing (SGP-HW), and the planning for the fourth Collaborative Research Network (CRN4). Key initiatives include a co-design process for climate adaptation in the megacities of Buenos Aires, São Paulo, and Santiago de Chile, and a collaborative research framework with Argentina's CONICET. The Directorate is shifting toward a co-funding model to diversify science funding and is emphasizing transdisciplinary research aligned with international frameworks like the SDGs.

The meeting, held on 2-3 April 2018, brought together policy makers, scientists, and international organizations to establish a co-designed research program for megacities in the South. The initiative aims to provide scientific guidance for adaptation and mitigation actions, specifically targeting decarbonization in transport, housing, and waste management, as well as addressing climate-related health risks and extreme weather events. The participants outlined a seven-component research plan emphasizing governance, social dimensions of adaptation, and capacity building to support the implementation of the Paris Agreement and Sustainable Development Goals in Buenos Aires, Santiago, and Sao Paulo.