The global development community gathered last week in Seville to discuss the future of development finance and the Sustainable Development Goals (SDGs) at the United Nations 4th International Conference on Financing for Development (FfD4).
The voices of cities and regions were at the forefront of discussions, as efforts to increase, mobilise and accelerate local, subnational and urban climate finance gained a more prominent role than in previous FfD conferences.
The Global Covenant of Mayors for Climate & Energy (GCoM) and the C40 Cities Climate Leadership Group delegations underscored the essential role of cities and subnational governments in driving the global development agenda, and the urgent need for systemic changes, enabling policies and multi-level partnerships to empower them with the tools and capacities they need.
Throughout the week, the delegation participated and co-hosted key dialogues and events on local and subnational development finance:
- GCoM co-organised the side event“Accelerating Sustainable Urban Development through Local Action and Global Partnerships” alongside ICLEI, CCFLA, CoMSSA and the City Gap Fund among others;
- C40 Cities and GCoM co-hosted a virtual session titled “Sustainable Finance Action and Advocacy: A Roadmap for Global South Cities” in collaboration with the United Nations Environment Program (UNEP) and UrbanShift;
- The Local2030 coalition hosted the Experts Roundtable on Local Financing for the SDGs – Taking stock and paving the road after FfD4.
Johanna Granados, Global Head of the GCoM-Gap Fund, Senior Advisor for City Resilience and Climate Finance, said:
“Cities have the ambition and vision to lead on climate action – but turning that vision into reality requires investable, well-prepared projects. Bold initiatives linked with early-stage support can unlock transformative urban investments, particularly in the Global South. This conference was a vital milestone in making the case for project preparation and pipeline development as a cornerstone of financing for development. Without it, climate goals remain out of reach; with it, cities are ready to deliver.”
Why does this convening matter for cities and urban climate action?
The United Nations 4th International Conference on Financing for Development took place at a pivotal moment for climate action and finance. The conference offered a critical platform to advance the conversation on how to unlock and mobilise finance to cities to help them drive climate action, in the run up to COP30 and the launch of the Roadmap from Baku to Belém.
Cities are home to over half the world’s population, they are responsible for roughly 70% of global CO₂ emissions, and more than 100 of the SDG targets (62%) require the engagement and participation of subnational governments. However, subnational governments face complex challenges with financing and despite growing local infrastructure requirements, subnational public investment barely represents 1.5% of total GDP. Moreover, development and climate action are intricate challenges that need comprehensive and synergistic solutions. From climate adaptation and clean mobility to inclusive housing and circular economies, the ability of cities to deliver on global goals hinges on access to finance, technical support, and strong partnerships. Sustainable urban development is not only possible but essential.
Luis Sáenz, Head of Finance and Policy Advocacy, C40 and GCoM, said:
“Urban leaders from all around the world are committed and delivering against the climate crisis. But they can not do so with their hands tied. Cities urgently need enabling policies that unlock and mobilise funding and finance for local climate action, and also a seat at the decision-making table. This conference was a key moment in pushing that agenda forward and calling on global finance institutions and national governments to meet the urgency of this moment with bold, city-focused action.”
From Advocacy to Action: The Urban Climate Finance Push
Over the last year, the world has seen major developments on the urban climate finance agenda. In March 2024, over 40 mayors from more than 30 countries signed an open letter urging Multilateral Development Banks (MDBs) to embed urban climate action and finance into their climate, corporate, and country strategies. Later that year, during the Urban20 summit, mayors called on national governments and Development Finance Institutions (DFIs) to increase public investment for urban climate finance for mitigation to a minimum of US$800 billion annually by 2030, as a means to address urban climate investment needs estimated at $4.3 trillion annually by 2030.
In response to that, the MDBs issued a joint statement in November 2024 expressing support for the mayors’ demands and reaffirming their commitment to accelerate urban climate finance, particularly through concessional funds, subnational lending, and de-risking instruments to mobilize private capital. They also pledged to enhance their focus on urban climate adaptation.
This year, during the World Bank Spring Meetings in Washington, D.C., in April, MDBs and subnational leaders met at the roundtable “Scaling Sustainable Investment in Cities: The Role of MDBs”. This gathering, convened by the C40 Cities, GCoM and Bloomberg Philanthropies represented an important milestone in efforts to bridge the gap between current levels of urban climate investment and what cities truly need.
Guidance Report: Increasing Finance for Subnational Climate Action
Earlier this year, C40 Cities and GCoM released a report, during the Green and Resilient Urbanshift Africa Forum 2025, in Nairobi, Kenya, titled How National Governments Can Increase Finance for Subnational Climate Action. This report was developed with support from Bloomberg Philanthropies, as a resource for national government members of the CHAMP Coalition, to provide them with implementation options, proven financial techniques, and coordination frameworks that can significantly increase finance for subnational climate action – in line with their CHAMP pledge.