This paper is the output of an exercise that aims to build the foundation for future work by the Cities Climate Finance Leadership Alliance (the Alliance) through a structured approach to analyze the challenges and priorities relevant to cities in decarbonizing the buildings sector.

Sharp and rapid reductions in methane emissions this decade are essential to limiting global warming to 1.5°C. While carbon dioxide has a longer lasting effect, methane has 80 times the warming power of CO2 in the first 20 years after emissions reach the atmosphere, meaning methane is setting the pace for near-term global warming.

Investment in urban climate projects is urgently needed worldwide. Cities hold most of the global population and economic activity and contribute approximately three-quarters of the global greenhouse gas (GHG) emissions, underlining the urgent need for projects to reduce emissions in urban areas and increase climate resilience.

Determining climate finance needs in developing economies is critical to identify financing gaps and opportunities to guide stakeholders to effectively access, allocate and mobilize climate finance.

Electricity access remains a significant global challenge, with only incremental progress made to date towards achieving Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy

Climate change has far-reaching impacts that are not limited to a particular sector or geography; it impacts the entire financial system. If left unchecked, this impact will be severe.

In the wake of the COVID-19 pandemic, Kenya has embarked on a low carbon, resilient recovery plan.

To understand how to accelerate investments in energy-efficient buildings, a systematic assessment of current investment flows is needed. This can help identify the challenges and entry points to scale investments, while also measuring year-to-year progress.

The 2021 edition of Climate Policy Initiative’s Global Landscape of Climate Finance provides the most comprehensive overview of global climate-related primary investment. Total climate finance has steadily increased over the last decade, reaching USD 632 billion in 2019/2020, but flows have slowed in the last few years.

Increasing the transparency and accountability of urban climate governance in this way will serve as a starting point for identifying investment gaps and exploring opportunities for mobilizing new resources.