Cities Climate Finance Leadership Alliance (CCFLA) launches the Local Hub program to help bridge the demand-supply gap for urban climate investment
CCFLA welcomes members in Central Asia to engage in the newly launched Local Hub. Write to the Secretariat, here.
London, April 25, 2023 – Cities are home to two-thirds of the global population and contribute to three-quarters of the global greenhouse gas emissions. They can be particularly vulnerable to changes in climate, underlining the need for heavy urban climate investments.
However, annual urban climate investment stands at USD 384 billion, far less than the estimated USD 4.5 to 5.4 trillion needed. Overcoming the barriers to scaling urban climate finance requires effective coordination and collaboration among various stakeholders.
In March 2023, CCFLA launched the Local Hubs program. The program aims to capitalize on CCFLA’s global membership network and climate finance expertise to support the development of place-based solutions that effectively address the barriers limiting urban climate investment in different countries and regions.
“We are excited and look forward to implementing the CCFLA Local Hubs program. Over the years, it has become clear to our members and us that addressing the various barriers preventing investment in urban climate infrastructure requires implementing local and targeted solutions,” said Dr. Barbara Buchner, Global Managing Director of Climate Policy Initiative. “The CCFLA Local Hubs come to deliver this vision and respond to our members’ demands.”
The program is structured to bridge the demand-supply gap for urban climate investment at the local level. To this end, it will engage members active in a particular geography to implement activities through the entire urban climate finance value chain that can help scale urban climate infrastructure financing.
“It won’t be the first time that CCFLA will work at the regional and local level. We have worked on multiple publications and activities focusing on accelerating urban climate investment in various regions, including Indonesia, Mexico, and Nigeria. As a result, the need for a more structured approach on the ground to effectively mobilize urban climate investments became apparent, and the CCFLA Local Hub was developed as a direct response to that need.” – Priscilla Negreiros, Senior Manager, CCFLA.
Although each Local Hub may operate differently, in broad terms, the goals will be the same for each region and country:
- Identify active members and understand how they contribute to the scale-up of urban climate investments.
- Engage with key stakeholders beyond the membership to understand the main challenges preventing investments and opportunities.
- Organize workshops to increase effective collaboration between members and key stakeholders to overcome barriers and realize opportunities.
- Develop action-oriented research to support the implementation of solutions enhancing urban climate investment.
Based in Central Asia, the first Local Hub is commissioned and funded by the Government of the Federal Republic of Germany through its International Climate Initiative (IKI). Focusing on the cases of Kazakhstan and Uzbekistan, this Hub will aim to increase urban climate investment directed to net zero-carbon buildings in the region. The Central Asia hub will be followed by a second one in Brazil, which will kick-start later in 2023.
“The start of the Local Hub program marks an important step in the evolution of the CCFLA. With the Local Hubs, the CCFLA moves from the global level to enabling local solutions with the aim to scale urban climate finance where it is most needed – locally. Approaches adapted to the specific needs and opportunities of different regions and municipalities are important to increase access to urban climate finance.” – Statement from the Federal Government of Germany
About the Cities Climate Finance Leadership Alliance (CCFLA)
The Cities Climate Finance Leadership Alliance is a coalition of leaders committed to deploying finance for city-level climate action at scale by 2030. Trillions of dollars will be required to help cities build the low-emissions, resilient infrastructure necessary to combat and react to climate change. The Cities Climate Finance Leadership Alliance is the only multi-level and multi-stakeholder coalition aimed at closing the investment gap for urban subnational climate projects and infrastructure worldwide.
Francisco Martes Porto Macedo
Senior Program Associate
Senior Communications Consultant