Financial aggregation for cities
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. This brief presents one potential strategy for cities to increase access to urban climate finance, which is financial aggregation. This brief defines financial aggregation as financial instruments or enterprises that combine multiple investments, participants, projects, or sectors to scale up financing for urban climate mitigation or adaptation needs. These strategies may target either one or both of the supply- and demand-sides of financial transactions. The supply-side aggregation strategies bring together multiple groups of finance providers and other actors, while demand-side aggregation strategies combine the purchasing or borrowing power of recipients of finance, including project developers, operating companies, and individual consumers.