• Rising Investment Needs: Cities worldwide report $86 billion needed for climate projects in 2024, a 23% increase from last year.
• Funding Gaps: 48% of projects remain in early stages, highlighting the critical need for technical and financial support.
• Sectoral Focus: Priority projects include buildings & energy efficiency, transport, and nature-based solutions.

Cities are stepping up in the fight against climate change, but a significant funding gap threatens progress. New data from CDP, in collaboration with the Global Covenant of Mayors for Climate & Energy (GCoM), reveals 2,508 climate-related projects across 611 cities in 75 countries with an investment requirement of $86 billion for 2024.

Demand Spike:

Investment needs surged 23% this year, but this still falls short of the $800 billion annual public investment required by 2030, as highlighted at U20 last year.

Related Article: Green Climate Fund Commits $687M to Climate Resilience, Forestry, and Early Warning Projects

Where the Money Is Needed:

Top investment sectors for 2024 include:

• Water Management: 272 projects, $28 billion
• Transport: 397 projects, $19 billion
• Buildings & Energy Efficiency: 508 projects, $12 billion

The United States leads with 484 projects, followed by the United Kingdom (333), Brazil (204), and Portugal (181).

Why It Matters:

While urban climate finance more than doubled between 2017 and 2022, it still lags behind the estimated $4.5 trillion needed annually through 2030 for climate mitigation and adaptation in cities.

Katie Walsh, CDP Head of Climate Finance for Cities, States, & Regions, said:

“Cities are leading the charge in the fight against climate change, but without urgent and substantial investment, their efforts will be hindered. The 23% rise in reported investment needs shows the growing scale of urban climate action, yet the funding gap remains a critical barrier.”

The Way Forward:

To scale up climate finance, CDP and partners are advocating for:

• Increased Public Investment: Mobilize $800 billion annually to meet city climate finance needs.
• Private Sector Engagement: Collaborate with public institutions to scale finance and reduce GHG emissions.
• Strategic Alignment: Ensure Nationally Determined Contributions (NDCs) align with local climate needs for effective urban financing.

More than 75% of projects were reported by cities in Coalition for High Ambition Multilevel Partnerships (CHAMP) endorser countries, demonstrating the critical role of transparent data in unlocking investments and driving climate action.

Katie Walsh emphasizes:

“It’s time to scale up climate finance, foster stronger cross-sector collaboration, and make Earth-positive decisions that will build resilient cities and ensure a sustainable future for all.”

Bottom Line:

Cities are ready to lead on climate action but need substantial financial backing. Addressing this funding gap is crucial to turning climate strategies into tangible, resilient urban solutions.

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