author: trust abdelzak
In June, the Cities Climate Finance Leadership Alliance (CCFLA) actively participated in a number of activities during London Climate Action Week (LCAW). This year’s forum brought together diverse individuals, organizations and communities for important discussions on global climate action, with a particular focus on accelerating climate finance and mobilizing all sectors of society to address the climate crisis. After careful consideration, the CCFLA team is excited to share our key insights and takeaways on the salient themes that emerged, particularly regarding cities and climate finance.
From highlighting the growing role of cities in successfully combating the impacts of climate change, to connecting local communities with international ambitions, LCAW offers a range of perspectives on how climate finance can support more sustainable, resilient and equitable development . This week’s focus on the quality of climate finance, the strong focus on adaptation, the need to scale up private sector investment and the strong commitment to equity are particularly encouraging. As these key topics continue to evolve, CCFLA eagerly looks forward to further discussions later this fall at Climate Week New York and COP29 in Baku.
1 | Cities are key to combating the impacts of climate change
With nearly 70% of the world's population expected to live in urban areas by 2050, cities are in a unique position to feel the impacts of climate change but are severely underinvested. Several LCAW events, including the Smart Cities World Cities Climate Action Summit, have addressed this gap, calling attention to the fact that cities are underutilized actors needed for mitigation, adaptation and recovery efforts.
Given cities’ close relationship with the impacts of climate change and growing public interest in local authority-led climate measures, investments that help reduce the financial and administrative burden on cities will bring wide-ranging benefits to the climate agenda. Greater financial support will enable city leaders to fully implement adaptation planning and climate budgeting initiatives, provide technical and administrative assistance for program planning and design, scale up quality climate programs, and facilitate the sharing of best practices across cities and regions. practice.
2 | Climate finance requires quantity and quality
LCAW also explored current issues in the composition of climate finance in response to the UNFCCC's upcoming discussions at COP29 on the New Collective Quantitative Targets (NCQG) for climate finance. Participants emphasized that the NCQG’s financing targets must be ambitious and improve the quality of climate finance.
exist The Development Initiative Group is titled, “Climate Finance: A Credibility Gap?” Panellists stressed that while there have long been calls to increase the quantity of climate finance, equal efforts are needed to improve the quality of climate finance, particularly for emerging and developing countries. Experts pointed out that investment options with more favorable financing conditions need to be provided to actually support developing countries in achieving their nationally determined contribution goals. Key stakeholders such as multinational development banks can further support developing countries by providing more blended financing mechanisms and promoting greater access to climate finance for local governments. It is important that these mechanisms are readily available, accessible, and support strengthening national and subnational fiscal capacities without exacerbating debt levels.
3 | Adapt to capital flows and must grow faster
Investments in climate change mitigation have received more attention and funding than adaptation. However, closing the adaptation investment gap is also critical to achieving the goals of the Paris Climate Agreement. Activities on climate adaptation and resilience in Africa and Asia, Hosted by the Private Infrastructure Development Group and the Climate Policy Initiative, This shortcoming is discussed. Experts stress that further action is needed to make investors aware of the urgency of adaptation, change their perception of adaptation from cost to critical investment in climate planning, and encourage more support for entrepreneurs working on adaptation programs.
Further adaptation will also require clearer guidance to support all levels of government in developing and scaling up adaptation measures. For cities, this includes help standardizing reporting data, guidance to support the transition of adaptation plans to investment plans, and describing resources available to municipalities seeking financial instruments for adaptation projects.
4 | Insurance and policymakers can stimulate private investment
LCAW’s activities draw attention to the growing need to mobilize private investment in climate finance. Team members are in Current status of climate politics forum Hosted by E3G It highlights that the private sector's current appetite for risk aversion is hampering progress in necessary investments, such as revamping infrastructure.
The role of the insurance sector in providing an important source of private finance, particularly for infrastructure projects that support adaptation and resilience, was also highlighted.
At the same time, the private sector also needs national and local governments to create a stable policy environment and formulate a permanent course of action for climate investment through clear policy signals and regulations. City-wide initiatives like the £100m London EDGE Fund, which aims to unlock additional private sector investment to support the decarbonisation of London’s capital infrastructure by 2030, can serve as an important blueprint for mobilizing private investment in cities around the world.
5 | Cities are best placed to help protect the most vulnerable
Low-income, disadvantaged groups are at greatest risk from the impacts of climate change and have fewer resources to combat its impacts. Climate finance, especially when funding urban climate infrastructure projects, must address these inequalities and protect vulnerable groups.
Many LCAW events hosted by CCFLA members include Adrienne Arsht-Rockefeller Foundation Resilience Center Activities building resilient and equitable communities and C40 city The co-sponsored green finance event recognizes cities and local governments as key players in ensuring programs protect vulnerable communities. Local governments understand the needs of their people and, through deep engagement with these communities during plan preparation, can ensure that climate infrastructure plans address inequalities.
Through this community-based approach, and through projects that address multiple social and environmental injustices, cities can attract more investments from financiers that meet social and environmental indicators and, in the process, support more Big community resilience.
LCAW highlights the key role cities play in linking global climate goals with local action, and emphasizes the importance of improving the quality of climate finance, scaling up adaptation efforts, expanding private investment and uplifting disadvantaged communities to respond more effectively to the climate crisis. As these topics continue to evolve, CCFLA looks forward to advancing these discussions to ensure a more sustainable and equitable future.
