Scaling-up Financing for an Urban Shift towards Nature-Positive and Climate-Resilient Cities

Climate change and biodiversity loss are global phenomena that largely impact urban life, generating a massive need for investments in climate action, as well as protection and restoration of biodiversity at the local level. However, the fundamental problem confronting most local authorities, especially those managing cities in developing countries, is that cities and regions today confront a global financial architecture designed largely by and for nation-states. Despite significant pledges to funds like the Green Climate Fund (GCF), the Least Developed Countries Fund, and the Special Climate Change Fund at COP28, as well as the launch of the Council of the GBF Fund (GBFF) at the seventh GEF Assembly, these funds remain difficult to access for subnational governments. Furthermore, city-oriented programs for local and subnational governments to access international finance, such as the EBRD’s Green Cities Program and the GEF Sustainable Cities Impact Programme, remain limited and could be further expanded.
National governments can play a significant role in creating the enabling conditions and securing a steady flow of financing towards sustainable urban development. This can be done by developing an overarching strategy to deliver shared prosperity while reaching net-zero emissions, and placing cities at its heart. This would guide all line ministries to incorporate urban development into their approach and de-risk low-carbon investment by providing clear signals to private actors. National governments can also set up mechanisms to fund sustainable urban infrastructure or seek international financing to support sustainable urbanization. Examples include placing cities at the heart of enhanced Nationally Determined Contributions from 2020 to 2025 and ensuring that all international development assistance is aligned with national urban strategies compatible with the Paris Agreement and the 2030 Agenda for Sustainable Development.
This partner-led event will further highlight the need for scaling up financing for the localization of the SDGs and other global environmental goals, by drawing on the experiences from UrbanShift cities, countries and partners, and the recommendations of the Urban SDG Finance Commission. It will more specifically explore how national governments can unlock financing for local governments to implement sustainability activities.
Building on the findings of the UNDSN Global Commission for Urban SDG Finance, the first part of the session will outline key challenges cities face in financing their sustainable transition and how national governments and the international community can help increase financing streams towards cities (20 mins). A panel discussion (40 mins) will follow, featuring local and national government representatives, and partners from the UrbanShift network who will share their experiences and recommendations. This will be followed by a 15-minute Q&A with the audience and 10-minute wrap up and closing.