SUSTAINABLE FINANCE ACTION AND ADVOCACY:
A ROADMAP FOR GLOBAL
SOUTH CITIES
EXECUTIVE SUMMARY
The urgency of sustainable finance for cities in the Global South cannot be overstated, as they face rapid urbanization and increasing climate vulnerabilities. With over half of the global population residing in cities and an even greater share expected to do so over the next three decades—mostly in the Global South—these regions are particularly at risk from climate change due to poor infrastructure, large informal settlements, heightened exposure to extreme weather events, and pollution.
These challenges can only be addressed through greater investment, current and future, into sustainable avenues that address both climate mitigation and adaptation needs of cities. Yet, the climate finance requirements of most cities remain largely unmet. Other than East Asia and the Pacific, in every Global South region the funding gap as a proportion of its estimated urban climate finance needs exceeds 90%.
Mayors can drive greater climate finance in two main ways:
- prioritizing and identifying actions that can be taken at the city level,
- engaging and advocating with national, regional, and global stakeholders, including national governments, International Financial Institutions (IFIs), private financiers, global climate funds, and institutional investors.
Commissioned by C40 Cities, the Global Covenant of Mayors
for Climate and Energy (GCoM), and UrbanShift, this Roadmap provides evidence-backed insights, policy recommendations, and tools for Global South city mayors to act and advocate for sustainable financial systems and enabling policy environments that support greater funding and investment for climate action in their cities.
THE SCALE OF THE CHALLENGE
US$4.3 trillion needed
annually for urban climate mitigation
+90% unmet climate finance needs
in almost every region of the Global South.
US$60 trillion investment needed
for urban infrastructure in Africa and Asia by 2040, driven by rapid urbanization.
US$2-4 billion in annual health costs
in Asia by 2030 due to climate-related heat stroke, waterborne diseases, and malnutrition.
34% decline in agricultural productivity
in Africa since 1961 due to erratic weather patterns, worsening food insecurity for urban residents
38% of states
in Latin America and the Caribbean have urban health services adequately prepared for increased climate risks
THE IMPERATIVE TO SCALE UP SUSTAINABLE FINANCE FOR CITIES
Investing in sustainable urban infrastructure and projects creates good, green jobs and boosts resilience, economic growth, health and quality of life whilst enhancing resilience.
01
Boosts urban resilience against climate shocks, reducing economic losses and protecting communities
02
Improves living conditions, particularly in informal settlements, supporting vulnerable populations with better housing, access to clean energy and basic services
03
Clean energy investment creates jobs, promotes long-term economic vitality, and fosters entrepreneurship
04
Strengthens city governance and builds city capacity with resources for planning, risk management, and service delivery
05
Helps cities attract private finance for climate projects through innovative finance mechanisms and enhanced transparency
06
Supports city, national and international climate commitments by significantly cutting emissions
THE IMPERATIVE TO SCALE UP SUSTAINABLE FINANCE FOR CITIES
Investing in sustainable urban infrastructure and projects creates good, green jobs and boosts resilience, economic growth, health and quality of life whilst enhancing resilience.
01
Boost urban resilience against climate shocks, reducing economic losses and protecting communities
02
Improves living conditions, particularly in informal settlements, supporting vulnerable populations with better housing, access to clean energy and basic services
03
Clean energy investment creates jobs, promotes long-term economic vitality, and fosters entrepreneurship
04
Strengthens city governance and builds city capacity with resources for planning, risk management, and service delivery
05
Helps cities attract private finance for climate projects through innovative finance mechanisms and enhanced transparency
06
Supports city, national and international climate commitments by significantly cutting emissions
Download the full report for a deep dive on urban climate finance, risks, and challenges to unlocking finance for Global South cities
ROADMAP FOR ACTION AND ADVOCACY
Mayors occupy a unique and influential position to drive climate action. On the one hand, they are able to advocate for and influence subnational, national, and global climate policies, while raising public awareness for climate action. At the same time, mayors can directly drive urban climate finance initiatives, playing a crucial role in strengthening investor confidence by calling on national governments to foster an environment that emphasizes transparency, stability, and a long-term vision.
The below Roadmap outlines key policy building blocks (those which can be led by mayors at the city level, relatively independently) and advocacy strategies (things which mayors need to advocate for by engaging others for support, above the subnational level). to support the mayors of cities across the Global South to drive and attract greater climate finance.
THEME 01
MAKE CLIMATE A STRATEGIC PRIORITY WITHIN YOUR CITY
1.1 Establish a Climate Action Plan and align targets with the city’s financial policies
Having a Climate Action Plan (CAP) and targets in place means cities are three times more likely to take the necessary action to reduce emissions, than those which do not. A CAP is foundational for cities globally to plan, take, and monitor ambitious climate action to reduce their emissions and build resilience in an inclusive way, outlining the necessary stakeholders within and beyond the city, needed for delivery.
To ensure cities are walking the talk, mayors can ensure that targets and approaches in their city’s CAP inform those in the city’s investment and financial allocation policies.
WHAT MAYORS CAN DO
- Establish a CAP with measurable targets using available resources: C40’s Climate Action Planning Framework, C40's Cities Climate Transition Framework, and GCoM Common Reporting Framework.
- Engage financial stakeholders such as local investors, banks and sources of funding or finance the city leverages, when developing the plan
- Reflect emissions reduction or climate resilience targets and associated timelines from the city’s CAP into financial allocation and investment policies.
CITY HIGHLIGHT
CAPE TOWN, SOUTH AFRICA
Cape Town, South Africa is advancing its climate leadership with a rich history of over two decades of climate change action, underpinned by strategic planning, policy development, and a proactive approach to program implementation. As part of its commitment to tackling the climate crisis, Cape Town has aligned itself with national and international climate strategies, further solidifying its role as a global climate actor. Since joining the C40 Deadline 2020 program in 2017, Cape Town has set ambitious goals, including reducing at least 80% of its 2016 emissions by 2050 and ensuring all buildings are net-zero carbon by 2050, with new buildings meeting this standard by 2030. The city’s Climate Change Policy formally recognizes climate threats and drives a comprehensive strategy for carbon neutrality and resilience. Additionally, Cape Town’s alignment with global initiatives, such as C40’s Divesting from Fossil Fuels, Investing in a Sustainable Future Accelerator demonstrates the city’s climate leadership through increased allocation of the city’s own finances to sustainable projects, and engagement with investors to call for a shift of investment away from fossil fuels and towards clean, job-creating projects and infrastructure.
1.2 Implement a climate budget
Climate budgeting is an innovative whole-of-city government approach where climate mitigation, resilience and equity considerations are embedded into a city’s governance, fiscal management and budgeting processes. It can help mayors to identify existing and future climate funding needs, and monitor and transparently report action, which can help build investor trust and help cities attract external funding.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
MUMBAI, INDIA
Mumbai, India has developed a climate budget to deliver on the climate resilience and net-zero emissions targets in the Mumbai Climate Action Plan (MCAP). To lead the work, Mumbai has created a climate cell through broad engagement with more than 20 government departments, thereby mainstreaming climate action strategically and helping distribute responsibility across the municipal government using ordinary budgetary processes, which are official and recognised. Subsequently the city has a better understanding of its spending, and more effective financial management and decision making. The climate budget also creates the opportunity for potential projects to be financed through external financing mechanisms by stating clearly the spend on projects and tracking and monitoring progress to the achievement of its climate goals, thereby increasing transparency. For example, the city has allocated INR 10 billion grant to the Brihanmumbai Electric Supply and Transport (BEST) for the transition to electric buses by 2026. The climate budget states that 75,000 tons of CO2 per year will be reduced as a result of the transition away from fossil fuel powered buses.
1.3 Establish ambitious, equitable climate policy to incentivise local green investments
Developing policies, tax incentives or subsidies that require locally developed infrastructure to meet strict environmental standards (e.g. through procurement of green technologies and energy, implementation of energy management strategies, improvement of energy efficiency and electrification) can help mayors meet city climate commitments whilst also generating green investment opportunities for private sector businesses and developers (see also Theme 3). To support the development of green investment markets in cities, mayors can also engage with industry associations and regulators to develop codes and help remove bureaucratic hurdles.
WHAT MAYORS CAN DO
- Create policies that give preference to vendors offering environmentally friendly products and services in city procurement processes, e.g. creation of a streamlined, transparent procurement system that lowers the barriers for small and medium enterprises (SMEs) to participate in government contracts, particularly those offering sustainable solutions.
- Promote public-private partnerships (PPPs) to develop green infrastructure projects.
- Introduce measures such as congestion charges, Low Emissions Zones, fines for polluting activities, or bans on single-use plastics to reduce emissions and encourage environmentally friendly behavior.
- Work closely with local businesses, community organizations, and residents to build support and ensure policies meet the community’s needs. Generate support by highlighting policy outcomes through campaigns, workshops, and community events.
- Engage with industry associations and regulators on building code amendments and call for the removal of bureaucratic hurdles to help direct private finance towards renewables and other clean investment opportunities.
CITY HIGHLIGHT
KIGALI, RWANDA
The Green City Kigali project in Rwanda demonstrates how local governments can effectively promote green investments. The ambition is to demonstrate a replicable approach to sustainable urban development, particularly in the context of Africa, where rapid urbanization is occurring, emphasizing the integration of affordable housing with climate-conscious solutions. The city introduced a tax holiday for green technology start-ups and provided grants to support urban greening projects and renewable energy solutions. As a result, Kigali has witnessed rapid growth in green businesses, including solar energy start-ups, which have significantly bolstered the city's climate resilience and positioned it as a leader in sustainable urban innovation. This includes leveraging financial incentives, regulatory tools, and targeted policies.
1.4 Establish or align with global green finance standards and guidelines to ensure consistency and reliability for climate investors
While national governments often take the lead in developing green taxonomy guidelines mayors can work towards creating and adopting a unified green taxonomy - essential for defining what constitutes “green” investments and ensuring consistency with international frameworks such as the EU Green Taxonomy, IFRS Sustainability Disclosure Standards developed by the International Sustainability Standards Board (ISSB) and the ASEAN Taxonomy for Sustainable Finance.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
LIMA, PERU
The city of Lima, Peru, commissioned studies revealing that investing in public transportation could reduce emissions by 15% by 2025 while saving citizens over US$ 1.1 billion annually. To enable such transformative investments, the city strengthened its fiscal governance and capacity to attract private financing for climate action by adopting better corporate governance policies, improving fiscal and financial management, and aligning capital investment planning with national green frameworks. Starting in 2006, the city updated tax collection strategies, improved accounting standards, and strengthened treasury and debt management, which significantly boosted its credit rating. These reforms attracted private sector interest, enabling Lima to secure a US$190 million commercial bank loan to co-finance a bus rapid transit (BRT) corridor project, demonstrating how robust governance reforms can unlock private financing for sustainable infrastructure and climate-focused initiatives.
1.5 Build data-driven climate risk policies to inform planning and financial decision-making
Cities need adequate data to inform climate-oriented decision making, helping them assess the exposure of city-owned financial assets - such as municipal budgets, municipal reserves, cash and investment funds, or emergency reserves - to high-carbon activities, and take steps to scale up investment to support the transition to a low-carbon economy.
WHAT MAYORS CAN DO
- Partner with universities, research organizations and NGOs to access expertise in data analytics, climate science and technology.
- Integrate climate risk criteria into financial planning, procurement policies, and budgetary processes to drive investment decisions towards sustainable assets.
- Undertake comprehensive financial assessment to identify and mitigate exposure to high-carbon investments, ensuring alignment with climate goals.
- Develop transparent reporting mechanisms to track financial allocations and demonstrate progress toward climate-aligned investment goals.
1.6 Work with local pension funds
Pension funds hold significant financial influence and can play a key role in advancing the shift towards a sustainable economy. Mayors can help harness this potential by actively engaging with local pension funds and encouraging alignment with the city’s climate goals, and investment into assets that provide benefits to the local economy. Where governance allows, mayors may be able to appoint Trustees to the Board of Trustees to ensure climate-expertise is embedded in investment decision-making.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
CAPE TOWN, SOUTH AFRICA
Cape Town is taking meaningful steps towards investing in a clean energy future. As part of its commitment to climate action, the city has signed up to C40’s Clean Investment Accelerator, pledging to mobilise finance away from investments that contribute to the climate crisis and towards those that support mitigation and adaptation efforts. In 2024 the city held a Knowledge Sharing Session, facilitated by C40, on Divestment from Fossil Fuels to bring together local pension funds with those from London and New York City to share their clean investment approaches, exchange insights, and discuss common challenges. Cape Town’s pension schemes have already made progress towards the clean investment agenda and aim to further advance their commitment by learning from global leaders in the field.
THEME 02
STRENGTHEN CITY CAPACITY TO LEVERAGE CLIMATE FINANCE AND IMPROVE PROJECT BANKABILITY
2.1 Create a dedicated Climate Finance Unit
Establish a Climate Finance Units (CFUs) within the city, serving as the main point of contact for leading and coordinating climate finance initiatives, and can house climate investment sub-units or departments.
WHAT MAYORS CAN DO
- Establish and define the roles and responsibilities of CFUs, including technical support, data analysis, and acting as a liaison with external stakeholders. This includes securing budget and personnel resources for CFU operations.
- Promote mentorship programs, such as through the CFO Network, convened by C40 and GCoM, where experienced city officials partner with those from less experienced cities, facilitating peer-to-peer learning and providing guidance on accessing climate finance.
- Engage with capacity development providers like C40 Cities, GCoM and others, to facilitate training sessions, webinars, and workshops for city officials.
CITY HIGHLIGHT
EKURHULENI, SOUTH AFRICA
Ekurhuleni, South Africa, developed a Climate Action Plan that identified various green investment opportunities and strategically bundled them into thematic portfolios, making them more attractive and bankable for financial institutions. By aggregating investments across sectors - such as public infrastructure, private buildings, and transportation - the city worked with banks to create a significant pipeline for financing climate-smart initiatives. This thematic approach enabled banks to move beyond isolated project financing, introducing innovative financial products like Sustainability-Linked Loans and Bonds and Property-Linked Financing. These tools supported energy efficiency upgrades, renewable energy adoption, and broader sustainability goals, while offering mechanisms for repayments via property tax increments. This model showcases how cities can collaborate with financial institutions to scale climate action through structured and bankable portfolios.
2.2 Establish capacity needs and support professional development for city officials on climate finance
To address capacity gaps in climate finance, mayors first need to identify climate finance-related skills and resource shortages and gaps within city governments. This is important to ensure that planning and project preparation teams are working with finance teams and those involved in environment risk analysis, and have the necessary knowledge and resources to embed climate into decision making.
WHAT MAYORS CAN DO
HIGHLIGHT
City-MDB COLLABORATION
The World Bank's City Creditworthiness Initiative (CCI) is transforming the way cities finance their future, empowering them to secure private investment for climate-smart infrastructure and essential services by enhancing financial management, legal frameworks, and planning processes. Through City Creditworthiness Academies, municipal leaders gain critical skills in managing revenues, debt, and long-term investments, laying the foundation for customized implementation programs. The initiative also supports national policy reforms to enable responsible sub-national borrowing. CCI has had a significant global impact, assisting cities like Kampala (Uganda), Addis Ababa (Ethiopia), and Bogotá (Colombia) in improving creditworthiness and attracting investment for green projects. Over 650 senior officials from 261 cities across 30 countries have benefited, advancing professional development and fostering sustainable urban growth.
2.3 Support the development of bankable and investment-ready project pipelines
City-led climate projects should be prepared such that they can be arranged into asset pipelines, to enhance investment-readiness and bankability - this is key to attract finance since urban infrastructure projects are typically too small for financiers to back, individually. 3.3 Take steps to improve cities’ creditworthiness will also aid a city's overall capacity to mobilize greater sustainable finance for their climate goals, whilst 4.3 Call on national governments to develop national platforms that can provide finance scale can provide the support project aggregation to further enable project bankability.
WHAT MAYORS CAN DO
Use platforms such as CDP-ICLEI Track to report to stakeholders on climate projects and pipelines
THEME 03
INCREASE PRIVATE SECTOR PARTICIPATION IN URBAN CLIMATE PROJECTS
Mayors can take the following direct steps to increase private sector participation in urban climate projects. These are complemented by steps to 1.3 Establish ambitious, equitable climate policy to incentivise local green investments (engaging with industry associations and regulators on green standards and emissions limits, or to help remove bureaucratic hurdles) and 1.6 Working with local pension funds, to encourage and incentivise more private investment into renewables and a low-carbon economy.
3.1 Use procurement to mobilise private capital
In sectors where the city government makes up a large share of the market, public procurement can be a powerful tool for driving growth in climate-friendly industries and spurring private investment. Many avenues exist for doing this, such as construction, transportation, electricity supply, and waste management. As referenced in theme 1, mayors can also engage industry bodies and push national-level regulatory or policy changes needed to ensure that city governments can issue bids to invite private investors into these sectors.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
RIO DE JANEIRO, BRAZIL
In 2023, Rio de Janeiro, Brazil, became the first city in Latin America to use a power purchase agreement (PPA) to supply electricity to municipal buildings with renewable energy. Following changes to Brazil’s energy sector legal and regulatory frameworks, opening up the electricity market to the private sector, the city’s leadership decided to procure renewable-source power through a public tender. Beginning with the city hall (which will save an estimated USD 6 million annually), the city plans to supply power to all municipal buildings through PPAs by 2026.
3.2 Explore use of blended finance and de-risking mechanisms to mobilise private investment
To effectively respond to climate change, foster clean development and ensure resilience, cities need a huge increase in accessible climate finance from both public and private sources. Mayors can take a proactive approach to innovate mechanisms that mobilise finance - including crowding in private investment - to green city projects such as blended (including concessional) finance, de-risking tools, political risk insurance, PPPs, loan guarantees, and technical assistance.
To complement this mayors can use their leadership to advocate to key climate finance providers for concessional finance, as outlined in 5.1 Call on key climate finance providers (MDBs, bilateral funders, IFIs, global climate funds) to increase funding for climate action and issue more concessional finance.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
CURITIBA, BRAZIL
In order to upgrade and modernize its existing Bus Rapid Transit (BRT) system which was declining in use and popularity, in 2013, the city government of Curitiba, Brazil, established a PPP with a consortium of public and private actors - Indra (Spain), Esteio, and Dataprom (both from Brazil). The USD 15 million contract aimed to enhance real-time traffic management and optimize public transport operations. The resulting intelligent transport system introduced dynamic traffic monitoring, priority bus signalling, and real-time passenger information, significantly reducing congestion, and making it more efficient, safe, and environmentally friendly. By leveraging this consortium model, Curitiba strengthened its position as a leader in sustainable urban mobility.
3.3 Take steps to improve cities’ creditworthiness
To improve private sector participation in financing low-carbon, climate-resilient investments, mayors can look to improve the ability of their cities to raise private capital, for example by developing a creditworthiness action plan.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
CAPE TOWN, SOUTH AFRICA
In 2022, the city government of Cape Town, South Africa published a ten-year infrastructure project pipeline to support infrastructure fundraising, valued at US$ 6.7 billion. Through knowledge sharing and transparency, private investors were able to assess whether they were willing to invest in the city's development projects and determine the level of return on their investment. Eventually, the city established successful coalitions of public and private actors, securing US$200 million by 2024.
THEME 04
ENHANCE NATIONAL POLICY FRAMEWORKS FOR CLIMATE FINANCE
4.1 Call for subnational actors and urban priorities to be included in national policy through multi-level partnerships
Mayors have a crucial role to play in advocating for stronger collaboration and partnerships between national and local climate policies, ensuring that the unique priorities of cities are fully reflected in national commitments. It is essential to bridge the gap between high-level national strategies and the on-the-ground challenges that cities face, making sure that urban voices are heard in national climate forums.
Many NDCs fail to allocate specific targets or resources to urban areas, despite cities being significant contributors to GHG emissions and in many countries, national adaptation plans fail to address urban challenges.
The Coalition for High-Ambition Multilevel Partnership (CHAMP) has been recognised as a valuable opportunity for national-subnational alignment and to foster collaboration for climate action. CHAMP was launched in COP28 and has been endorsed by over 70 countries who have committed to improve and enhance their work with local and regional governments.
WHAT MAYORS CAN DO
- Leverage the commitments made by CHAMP endorsing countries - or call for them to join CHAMP - and demand better collaboration, transparent dialogue, enhanced policy alignment and finance investment for cities.
- Call on national governments (e.g. Ministries of Finance and Environment) and participate in national climate forums to call for city-specific targets to be embedded in NDCs and national adaptation plans (NAPs).
- Support this activity by gathering city-level data and case studies to highlight benefits, supporting policy proposal drafts, and organising local advocacy campaigns to build momentum for policy changes.
- Leverage the influence of associations like the Council of Governors and the League of Mayors to promote improved legal and regulatory frameworks.
HIGHLIGHT
CHILE
Chile has become a global leader in sustainable development by aligning urban and national climate policies through a series of strategic actions. The country’s Climate Change Law (Law 1931 of 2018) stands as a key milestone, empowering local governments to actively engage in climate change mitigation and adaptation efforts. This landmark legislation integrates climate considerations into both national and local planning, ensuring urban priorities are reflected in national climate commitments. Alongside this, Chile has made significant progress in decentralizing governance, overall involving the private sector and civil society using participatory approaches. A study supported by the World Bank and NDC Support Facility projects that Chile's path to carbon neutrality could boost the economy by 4.4% by 2050, generating an additional US$ 31 billion in economic output.
4.2 Engage with national Ministries of Finance to call for decentralised climate finance
Decentralization, paired with capacity development, empowers cities to manage resources and decisions effectively, addressing local challenges and building climate resilience. By advocating for fiscal reforms and decentralized structures, cities can better allocate resources, access international climate funds (e.g., Green Climate Fund), and adopt sustainable practices. Legal reforms enable cities to issue green bonds, secure concessional loans, and engage in PPPs, attracting investments for resilient infrastructure. Autonomous fiscal regimes also allow cities to align resources with local priorities like climate programs, infrastructure, and public services.
WHAT MAYORS CAN DO
COUNTRY HIGHLIGHT
COLOMBIA
Colombia's Climate Change Law (Law 1931 of 2018) is a milestone in climate governance, emphasising decentralisation to integrate climate action into national, regional, and municipal planning. The law empowers local governments to develop and implement mitigation and adaptation strategies, ensuring that climate considerations are embedded in land management and development plans. Key provisions include enhancing local capacity to manage climate risks, fostering community participation in decision-making, and promoting investment in climate-resilient infrastructure. By aligning local actions with national climate goals, Colombia is creating a more coordinated and effective approach to sustainability and resilience, serving as a model for decentralised climate action.
4.3 Call on national governments to develop national platforms that can provide finance at scale
Mayors can collaborate with national governments to encourage the creation of country-level platforms with the mandate and ability to aggregate city-level and subnational climate projects - which are often too small for financiers to back individually - to increase bankability for funders, in particular MDBs but also institutional investors. They can also advocate for national governments to use proven financial techniques such as guarantees, de-risking mechanisms and establish project preparation facilities to improve the investment-readiness of green city projects and meet funder requirements.
WHAT MAYORS CAN DO
CITY HIGHLIGHT
LUANDA, ANGOLA
The Bita Water Project in Luanda, Angola, exemplifies collaboration between a national government and international institutions to improve the bankability of a municipal water infrastructure project. Using a US$500 million guarantee from IBRD, the Angolan government secured US$910 million in commercial loans to extend potable water services to 2 million residents in Luanda - executed by the city’s water utility. The IBRD guarantee reduced borrowing costs, extended loan maturity to 15 years, and mitigated default risks by incorporating a cash reserve for loss protection. Additional support from the African Trade Insurance Agency and BPI France Assurance Export helped mobilize US$1.1 billion in total financing, demonstrating how guarantees and partnerships can unlock private investment in traditionally less attractive sectors like water infrastructure.
THEME 05
PROMOTE AND CALL FOR INCREASED CLIMATE FINANCE AND IMPROVED ACCESS FOR CITIES
5.1 Call on key climate finance providers (MDBs, bilateral funders, IFIs, global climate funds) to increase funding for climate action and issue more concessional finance
To fill the large urban climate investment gap, the overall amount of climate finance needs to increase, as does concessional finance to derisk and make urban projects more attractive to financiers. Mayors can use city networks and global climate moments such as UN Climate Change Conferences (COPs) or UN Sustainable Development Goals Summits, and major urban-focused events such as the C40 World Mayors Summit, World Urban Forum (WUF) and U20 to issue collective calls to key climate finance providers for greater volumes of funding for climate action, and more concessional funding for city-led projects that target low-income areas, marginalised communities, workers, and other at-risk populations, such as letters endorsed by mayors of C40 and GCoM cities in 2024, calling for greater levels of climate finance and for MDBs to increase essential support for green, urban projects.
WHAT MAYORS CAN DO
COLLECTIVE CITY DIPLOMACY HIGHLIGHT
In 2022, mayors from around the world gathered in Buenos Aires to emphasize the urgent need for action on climate-related migration ahead of COP27. With climate change increasingly displacing people, mayors called for national governments to prioritize adaptation measures, urging that 50% of climate finance be allocated to adaptation efforts. The Global Mayors Task Force on Climate and Migration, led by C40 Cities and the Mayors Migration Council, was formed to address the urban impacts of climate migration, with newly joined members including the mayors of London, Amman, and São Paulo. The task force aimed to channel more resources to the Global South, where the impacts of climate change are felt most acutely.
5.2 Call on national governments to shift finance and subsidies away from polluting industries, and to incentivize green investments
Mayors can use these milestones to call on the Finance Ministers and Treasuries within their national governments to take greater steps to incentivise green investments, whilst also highlighting that continued financial support for fossil fuel-based activities is misaligned with a climate-safe future for all. One example includes C40 co-Chair and Mayor of Freetown, Yvonne Aki-Sawyerr has, alongside numerous other mayors across Global South, the Fossil Fuel Non-Proliferation Treaty.
WHAT MAYORS CAN DO
5.3 Call for climate finance donors to support the fund for Loss and Damage and for subnational access to it
The success of the Loss and Damage (L&D) Fund will be defined by whether it is fit for purpose for cities. L&D cannot successfully be addressed without responding to its growing urban dimension and nature, due to the high concentration of people and assets in cities, and unique aspects of L&D that this creates, such as climate migration and health impacts.
Mayors can use major milestones to call on climate finance donors to support the fund for L&D, ensure the urban dimension of L&D are adequately recognised, and that subnationals can access funding.
WHAT MAYORS CAN DO
REGIONAL HIGHLIGHT
The African Ministerial Conference on the Environment (AMCEN) held in Abidjan, Côte d'Ivoire, in September, focused on the urgent need for a "finance COP" at COP29 in Baku, Azerbaijan. African leaders pushed for the adoption of a New Collective Quantified Goal (NCQG) on climate finance, urging developed countries to mobilize at least US$ 1.3 trillion per year by 2030 for developing nations. The goal emphasizes grants and highly concessional finance, with a focus on debt sustainability and transparent accountability mechanisms. The conference highlighted the critical role of grants and concessional finance in addressing climate change impacts, particularly for adaptation and loss and damage in the Global South. Ministers also called for reforms in financing approaches by MDBs and IFIs to prevent further debt accumulation and unlock more funds for climate action.
CONCLUSION
The massive growth of urban populations across the Global South, economic dynamism and vulnerability of cities to climate risks means the urgency of climate action for cities across the Global South cannot be overstated.
Mayors occupy a unique and influential position to directly drive and advocate for greater climate finance and to ensure subnational access for the green projects and infrastructure needed to ensure cities across the Global South are resilient and positioned to grow sustainably.
By implementing the policy building blocks outlined in this Roadmap, mayors are powerful actors to foster a subnational climate finance ecosystem by embedding climate urban fiscal policies, driving urban climate finance initiatives, and strengthening investor confidence. At the same time they can use the advocacy messages and tactics in this Roadmap to leverage their climate leadership and engage national governments and financial actors, to call for the necessary reforms to unlock greater sustainable finance flows and ensure subnational access. Together, with bold leadership and collective resolve, cities in the Global South can lead the way towards a fossil fuel-free, inclusive, and prosperous future for all.
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