In 2014, the global landscape of urban climate finance was fragmented, with many city leaders struggling to secure the necessary capital to invest in low-carbon and climate-resilient infrastructure. In recognition of this gap, the Cities Climate Finance Leadership Alliance (CCFLA) was born, bringing together institutions with a shared mission: Catalyzing and accelerating capital flows to cities in order to ultimately close the climate investment gap for urban areas. As CCFLA celebrates its 10th anniversary, we reflect on a decade of milestones and achievements that are helping to shape the future of urban climate finance.
From 2014 to 2024: CCFLA’s Key Milestones
CCFLA was launched at the United Nations Secretary-General’s Climate Summit in September 2014, establishing a unique multi-level and multi-stakeholder coalition. The founding goal was clear: Support global institutions with different aims and backgrounds in mobilizing finance for low-carbon and climate-resilient urban infrastructure, aiming to ensure that the global temperature rise remains below 1.5°C.
CCFLA set out to bridge the gap between the need for city-level climate action and the financing required to achieve those goals. By creating a platform for collaboration, knowledge-sharing, and innovation, CCFLA set the stage for a global transformation in how cities approached climate finance.
From 2014 to 2018, CCFLA was led by various organizations and made significant progress by emphasising project preparation as a crucial area for urban climate finance. During this period, the Project Preparation Action Group (PPAG) was launched, fostering deep collaboration among practitioners to strengthen project preparation processes for sustainable urban development.
In September 2019, CCFLA was relaunched with a new Secretariat managed by the Climate Policy Initiative (CPI), supported by dedicated funding from two German ministries: the BMZ and BMU (now BMWK). This relaunch during the UN Climate Action Summit represented a renewed commitment by CCFLA members to accelerate climate action at the city level and bridge the financing gap for urban infrastructure.
Since its relaunch, CCFLA has expanded its membership to 84 organizations, positioning its members to influence the global urban climate finance agenda. Supported by a strong Steering Committee, the CCFLA Secretariat and its members have focused on advancing critical topics to drive urban climate investment. CCFLA aims to continue shaping the agenda by fostering collaboration, sharing knowledge, and developing innovative solutions to overcome barriers in urban climate finance.
Some standout areas of progress for CCFLA in the past decade are highlighted below:
Tracking urban climate finance globally
CCFLA has been instrumental in providing global numbers and assessments on how cities are receiving climate finance. The State of Cities Climate Finance Report (SCCFR), which has published three editions since 2014, has been providing the most comprehensive assessment of urban climate flows and needs globally, informing action on mobilizing finance for city-level climate action at scale. It has shown that tracked urban climate finance flows have more than doubled between 2017 and 2022, reaching USD 831 billion in 2021/22. Private finance accounted for 49% (USD 404 billion) of total urban climate finance, and public finance accounted for 22% in 2021/22. Private finance tripled between 2017 and 2022, accounting for 49%, while public finance more than doubled, representing 22%. Yet, this is still far from local-level needs for the climate transition. For mitigation alone, cities require an estimated USD 4.3 trillion annually from now until 2030, and over USD 6 trillion per year from 2031 to 2050.
By providing this overview, CCFLA has been building the narrative to show how better data and tracking are powerful policy and investment prioritization tools for national and subnational policymakers, international organisations, and impact-oriented investors.
Fostering project preparation collaboration
Project Preparation Facilities (PPFs) are critical in helping cities develop bankable, investment-ready projects by providing technical and financial support from a project’s early concept stage through to financial close. Since its inception, CCFLA has been improving how PPFs collaborate and use standards to increase the likelihood of moving ideas into investable projects. It has developed a Project Preparation Resource Directory to help subnational governments and stakeholders identify PPFs that can support them in creating green and resilient infrastructure. While some PPFs offer broad support across regions and sectors, others focus on specific geographies and project stages or are linked to a particular fund or development bank, even specializing in private sponsors or public-private partnerships.
In 2023, CCFLA launched its PPF Connector program to enhance collaboration among PPFs, city networks, and stakeholders, strengthening the technical assistance ecosystem for urban climate infrastructure projects. Funded by Bloomberg Philanthropies, the PPF Connector enables stakeholders to access project matchmaking services, partnership assistance, and valuable resources. This program is a pivotal advancement, facilitating smoother project preparation and fostering early-stage cooperation between public and private investors, which is essential for the success of subnational low-carbon infrastructure projects.
Supporting a strong enabling environment
Enabling Framework Conditions (EFCs) are crucial for scaling urban climate finance. They provide regulatory clarity, strengthen institutional capacity, reduce investment risks, encourage stakeholder engagement, and improve access to finance. These conditions create an environment conducive to long-term sustainability by empowering national and subnational entities to advance climate action and achieve global climate goals. EFCs can enable cities and regions to attract and manage climate investments more effectively, driving meaningful progress in urban climate resilience and low-carbon development.
To support this, the CCFLA/Urban-Act National Assessment Tool was developed in 2024 to assess national EFCs, enabling urban governments to improve access to climate finance. This standardized tool aids in identifying strengths and areas for improvement in national EFCs by analyzing intergovernmental relationships and regulatory conditions. While this tool’s primary users are national government officials, it is also valuable for local governments, city networks, and NGOs. A complementary Subnational Assessment Tool is also available to evaluate EFCs within specific regions, providing tailored recommendations, case studies, and resources to help subnational governments to create favorable conditions for urban climate finance. Together, these tools can guide improvements in policy and institutional frameworks, fostering more effective climate finance ecosystems.
Increasing our Local Presence
In March 2023, CCFLA launched its Local Hubs program to leverage its global network and expertise in climate finance to address barriers to urban climate investment across different regions. The program aims to create place-based solutions that bridge the gap between the demand and supply of urban climate finance at the local level. By engaging members and stakeholders within specific geographies, the Local Hubs program will implement activities throughout the urban climate finance value chain to scale investment in urban climate infrastructure.
Local Hubs will have similar goals tailored to its region, including identifying key members and stakeholders, understanding investment challenges and opportunities, hosting collaborative workshops, and conducting action-oriented research. The first Local Hub, funded by Germany’s International Climate Initiative (IKI), is based in Central Asia and focuses on net zero-carbon buildings in Kazakhstan and Uzbekistan. A second Hub in Brazil is set to launch early, continuing this place-based approach to scaling urban climate investment.
Promoting urban considerations in climate finance debates by empowering advocacy
One of CCFLA’s primary goals is to elevate urban climate finance in global climate discussions. This is essential for achieving the scale of investment needed to combat climate change. CCFLA aims to empower its members to advocate for more significant urban climate investments by providing knowledge and resources. At COP28, the pivotal role of cities in addressing the climate crisis gained significant recognition. The first Local Climate Action Summit, hosted by the COP28 presidency and Bloomberg Philanthropies, brought together local leaders to highlight their contributions to emissions reduction and climate risk management. Despite this progress, the challenge of financing urban climate action persists. Cities, responsible for a substantial portion of global emissions, represent a USD 30 trillion investment opportunity by 2030, yet they currently receive only 7% to 8% of the required climate finance. Although multilateral development banks (MDBs) committed to increased climate finance at COP28, urban needs are often overlooked in MDB reform discussions.
Understanding these challenges, CCFLA launched a groundbreaking report highlighting the role MDBs could play in financing urban climate initiatives, particularly for cities in low- and middle-income countries. MDBs, leveraging their financial capacity and technical expertise, can play a crucial role in attracting the necessary funds to help cities implement climate action plans.
The way forward: Building on a decade of impact
Looking ahead, our focus will be on intensifying efforts in adaptation and engaging the private sector, ensuring that collaboration among members remains at the heart of our agenda. By prioritizing these areas, we aim to foster innovative solutions that enhance resilience while strengthening our collective impact through shared knowledge and partnership.
As we celebrate our 10th anniversary in 2024, CCFLA stands as a global leader in urban climate finance, with a network of over 80 members and a decade of groundbreaking achievements. From catalyzing collaboration among city leaders and financial institutions to pioneering innovative solutions including LUCI and the Financial Instruments Toolkit, CCFLA has played a pivotal role in shaping the urban climate finance landscape.
But the work is far from over. As cities face increasing climate challenges, the need for innovative financing solutions has never been greater. CCFLA remains committed to closing the urban climate finance gap and ensuring cities have the resources to build a sustainable, resilient future.
Here’s to another decade of driving change, fostering collaboration, and empowering cities to lead the charge in the fight against climate change.
Support from our members and partners:
Gerry Muscat, Head of Division, Urban Advisory Division, European Investment Bank
“As the EU’s Climate Bank, and major global financier of urban investment, we at EIB value highly the key role of CCFLA in fostering collaboration, partnership and knowledge sharing. Thank you for helping us develop instruments like the City Climate Gap Fund, and congratulations to CCFLA on its 10th Anniversary!”
Lauren Sorkin, Executive Director, Resilient Cities Network
“CCFLA shines a light on the hard truth of climate investment gaps where it’s needed most. R-Cities stands proud as a member, championing collective action.”
Samba Karhini-Masengo Guisse, Permanent Consultant to the President of the DRC
“Joining the SC of CCFLA four years ago allowed me access to invaluable insights that helped me participate in the design of climate action and financial inclusion plans, underpinned by evidence-based climate policies, strategic milestones, business-friendly sectoral plans, bankable projects, and innovative financial & currency risk mitigation strategies.”
Dr. Heike Litzinger, Head of Division for Energy, Urban Development and Mobility, German Federal Ministry for Economic Cooperation and Development (BMZ)
“CCFLA has evolved to the most important network for subnational climate finance, uniting key stakeholders, fostering crucial discussions and collaboration for urban climate finance. Its impactful knowledge products and advocacy contribute to international debates and decision-making. BMZ proudly supports CCFLA’s mission as a core donor, foreseeing its continued impactful work.”
Carmen Vogt, Head of Global Section Cities at HQ of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
“CCFLA has proven to be a pivotal platform in advancing urban climate finance, bringing together diverse stakeholders to drive innovation and practical solutions at the subnational level. Through its network, knowledge sharing, and advocacy, CCFLA helps shape the international climate finance agenda, ensuring that cities and regions are better equipped to meet the challenges of climate change and secure adequate finance. GIZ is proud to contribute to this important mission by sharing experiences and knowledge on bankable project preparation and implementing sustainable urban development projects that create lasting impact on the ground.”
Maryke van Staden, Director of Business Development and of the carbonn Climate Center at ICLEI
“As a founding member of CCFLA, ICLEI is delighted to celebrate 10 years of impactful collaboration of this initiative. Being part of this great ecosystem of diverse organizations—by contributing technical expertise in the Action Groups, engaging in the Steering Committee, and nominating ambassadors to spread key messages around the globe—has been a wonderful journey so far. Only together can we create systemic change to enable the flow of finance for sustainable infrastructure in cities and towns, and so accelerate local climate action through transformative projects that protect and serve local communities.”
Dr. Vera Rodenhoff, Deputy Director General for International Climate Action and International Energy Transition, German Federal Ministry for Economic Affairs and Climate Action (BMWK)
“Over the past decade, CCFLA has been a champion for significantly elevating subnational climate finance and fostering vital connections among stakeholders. Projects that we fund via the International Climate Initiative (IKI) have benefited from CCFLA’s insights, while its partnerships (and friendships) have been invaluable. Looking ahead, I hope more stakeholders will leverage CCFLA’s resources and actively contribute to this Alliance.”
Andy Deacon, Co-Managing Director, Global Covenant of Mayors (GCoM)
“Over the last ten years, CCFLA has been instrumental in bringing together stakeholders from across the urban climate finance value chain to enhance knowledge, understanding, and accelerate multi-level global climate action. It’s been an exciting decade, and we look forward to continuing to work closely together to unlock more finance for cities on the front lines of the climate crisis.”