From the Baku-to-Belém Roadmap and beyond, COP30 is a pivotal moment to mobilize climate finance, strengthen policies, and deliver real impact
Cities are on the frontlines of the climate crisis—responsible for much of the world’s emissions yet holding the key to a sustainable and inclusive future. They are already delivering climate action at scale, but finance must now follow. To create green jobs, affordable housing, and resilient infrastructure, cities urgently need predictable and accessible finance. Scaling up urban climate finance is therefore a global priority. And COP30 is the moment to act.
Every year, cities require up to $4.5 trillion to fight the climate crisis, yet current flows meet only 20% of these needs. Public investment is critical to closing the gap, with $800 billion needed globally per year by 2030. These figures underscore the urgent need not only to increase total investment, but also to direct finance more equitably toward emerging and developing economies.
The Baku-to-Belém Roadmap’s call to mobilize $1.3 trillion annually presents a historic opportunity to make this shift and ensure cities, towns, and regions are at the center of global climate finance. COP30 must recognize cities and subnational governments as key partners in achieving this target – mobilizing public and private investment for adaptation, infrastructure, and the just transition, while strengthening enabling policies, enhancing direct access, and supporting domestic capacity to prepare and deliver projects.
Despite growing recognition of cities’ role, funding remains far below what is required to build resilient, low-carbon urban infrastructure. Strengthening collaboration between national governments, city networks, and Multilateral Development Banks (MDBs) will be essential to scale both public and private investment.
With COP30 marking a turning point to fully integrate cities into the UNFCCC process – and under the “Global Mutirão” theme – C40 and GCoM are working to ensure that urban priorities are embedded in the global climate finance agenda. This partnership underscores the pivotal role cities play in implementing the next generation of Nationally Determined Contributions (NDCs) and delivering climate action that leaves no one behind.
Andy Deacon, Co-Managing Director for the Global Covenant of Mayors for Climate and Energy (GCoM), said:
“Cities are already delivering where it matters most. They’re translating national pledges into real climate action on the ground. As countries strengthen their NDCs, success will depend on whether finance and decision-making reach the local level, especially in the Global South. The success of COP30 should be tied to strong local action, supported by clear financing mechanisms that ensure funds flow to where people live, work, and face the greatest climate risks.
Andrea Fernández, Managing Director, Climate Finance, Knowledge and Partnerships at C40 Cities, said:
“Cities are leading the way on climate action, delivering solutions where people live and face the greatest risks from climate change. But ambition alone isn’t enough. Finance must follow. Mobilizing accessible, reliable funding to cities is essential to protect communities, build resilient infrastructure, and ensure that climate action benefits those who really matter. This is not just about climate. It’s about fairness, social justice, and ensuring an equitable future for all.”
In the last three years, C40 Cities and the Global Covenant of Mayors for Climate and Energy (GCoM) have partnered to help mayors worldwide strengthen their capacity to access and deploy climate finance. Together, they have championed cities’ access to funding, launched dedicated finance accelerators within CHAMP countries, and built an understanding of innovative business models and financial instruments to unlock investment. They have also supported cities in strengthening project pipelines – advancing feasibility assessments, investment cases, and engagement with financiers – while embedding climate goals into local budgeting and governance.
For more details, explore the full overview of this work and its impact.
A Timeline of Urban Climate Finance Momentum
Over the past two years, momentum around urban climate finance has accelerated through coordinated action by city leaders, multilateral institutions, and development partners. From early calls by mayors to reform global finance systems, to growing commitments from Multilateral Development Banks (MDBs) and national governments, a series of key milestones has shaped a shared agenda to close the urban climate investment gap. The following timeline outlines the major developments driving this global effort toward scaling finance for sustainable, resilient, and low-carbon cities.
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.
November 2024 – In response to that, the MDBs issued a joint statement 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.
February 2025 – 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 CHAMP, to provide them with implementation options, proven financial techniques, and coordination frameworks that can significantly increase finance for subnational climate action.
April 2025 – 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 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.
July 2025 – The City of Chefchaouen hosted a high-level event on Urban Climate Finance on July 8 and 9, convening national and local leaders, international institutions, and Multilateral Development Banks (MDBs) to spotlight the pivotal role of cities in driving global climate action. It reinforced a simple but urgent call through the Chefchouen Call for Climate Action in Morocco calling upon the international community to foster stronger cooperation with local and regional governments to close the persistent local climate finance gap.
September 2025 – An initial urban adaptation/resilience workshop brought together MDB representatives to share experiences, challenges, and lessons from different regions. This exchange laid the groundwork for deeper collaboration ahead of the Local Leaders Forum and C40 World Mayor’s Summit.