As cities take a leading role in climate action, new data from CDP – the world’s independent environmental disclosure system – highlights the urgent need for climate finance to support urban infrastructure projects globally.
The 2024 Global Snapshot, developed in partnership with the Global Covenant of Mayors for Climate & Energy (GCoM), reveals that 611 cities across 75 countries have disclosed 2,508 climate-related projects through CDP-ICLEI Track in 2024, with a total investment requirement of US$86 billion. Demand for climate finance in cities is increasing year-on-year as reported investment needs surged by 23% in 2024. However, this remains only a fraction of the US$800 billion in annual public investment from national governments and development finance institutions required by 2030, as highlighted at U20 last year. Bridging this gap presents an unprecedented opportunity to unlock Earth-positive solutions and accelerate sustainable urban transformation.
Despite progress, urban climate finance remains severely insufficient. While urban climate finance flows more than doubled between 2017 and 2022, they still fall far short of the estimated US$4.5 trillion required annually through 2030 for climate mitigation and adaptation in cities. With 86% of the reported projects actively seeking funding, and 40% of projects in emerging markets and developing economies (EMDEs) requiring full financing, there is a pressing need for targeted investment to unlock these essential climate solutions. The top three sectors for investment in 2024 are:
Water management – 272 projects (US$28 billion)
Transport – 397 projects (US$19 billion)
Buildings & energy efficiency – 508 projects (US$12 billion)
While developed economies report the highest number of projects, with Europe, North America and Latin America leading in numbers of reported projects; cities in EMDEs account for only 27% of total reported financing needs. This imbalance highlights the need for greater international support to ensure climate resilience in the most vulnerable urban areas.
Scaling up climate finance: Key actions
Cities are tackling the climate crisis, but greater support is needed, especially in emerging markets. CDP and partners call for:
Increased Local Climate Finance: Mobilise at least $800 billion annually in public investment by 2030 to meet the $4.5 trillion city climate finance need.
Private Sector Engagement: Foster investment-friendly conditions, collaborate with public financial institutions to drive finance at scale and mitigate GHG emissions and climate risks in cities.
Alignment of National & Local Strategies: Ensure NDC strategies align with local needs for accessible, effective urban climate finance.
Robust and granular data on cities’ climate projects and investment needs is crucial to the success of initiatives like the Coalition for High Ambition Multilevel Partnerships (CHAMP) for climate action. With over 75% of projects (1,929) reported by cities in CHAMP endorser countries, CDP-ICLEI Track data can support national governments in better understanding local needs and priorities, aligning their NDC investment strategies, and informing their efforts to scale up city climate action.
As cities adapt to a world of more frequent extreme weather events and aim to reduce their environmental impact, increased transparency in data disclosure will be critical in unlocking investment and driving meaningful action.
Katie Walsh, CDP Head of Climate Finance for Cities, States, & Regions and North America Lead, said: “Cities are leading the charge in the fight against climate change, but without urgent and substantial investment, their efforts will be hindered. The 23% rise in reported investment needs shows the growing scale of urban climate action, yet the funding gap remains a critical barrier. The figures from this year’s Global Snapshot reinforce a key message: cities are taking action, but they cannot do it alone.
“To make meaningful progress, we must empower local governments, especially in developing economies, with the financial support they need. It’s time to scale up climate finance, foster stronger cross-sector collaboration, and make Earth-positive decisions that will build resilient cities and ensure a sustainable future for all.”
Asma Jhina, Senior Advisor - Urban Climate Finance and Inclusive Action, Global Covenant of Mayors for Climate and Energy (GCoM), said: “Now, more than ever, cities around the world are stepping up to lead in the climate fight and are moving forward with critical urban infrastructure projects to build resilient communities for years to come. But they need access to funding and partnerships to deliver these projects, and the current CDP Global Snapshot highlights the urgent need for climate finance to support urban infrastructure projects globally.”
