Cities worldwide are seeking $86 billion in investment to support climate infrastructure projects, with nearly half still in early development stages requiring technical and financial support, according to a report released on Tuesday by the environmental disclosure group CDP.
The report, compiled in partnership with the Global Covenant of Mayors for Climate & Energy, highlighted a 23 percent surge in reported investment needs in 2024.
The study added that 611 cities in 75 countries disclosed 2,508 climate-related projects, underscoring the growing urgency of climate finance.
“Cities are leading the charge in the fight against climate change, but without urgent and substantial investment, their efforts will be hindered,” said Katie Walsh, CDP’s head of climate finance for cities, states & regions. “The funding gap remains a critical barrier.”
Key Sectors Seeking Climate Finance
The report identifies transport, buildings and energy efficiency, and nature-based solutions as the top sectors seeking financing. The United States has the highest number of projects at 484, followed by the United Kingdom at 333, Brazil at 204 and Portugal at 181.
Water management also emerged as a significant area of investment need, with 272 projects requiring $28 billion in funding.
Transport projects sought $19 billion, while buildings and energy efficiency initiatives require $12 billion.
Despite increasing demand, funding remains disproportionately distributed, with developed economies leading in project numbers while cities in emerging markets struggle to secure financing.
The Call for Scaled-Up Climate Finance
CDP and its partners have called for a significant scale-up in climate finance, urging at least $800 billion in annual public investment by 2030 to meet the estimated $4.5 trillion required yearly to fund global climate mitigation and adaptation efforts.
The report also emphasized the importance of aligning national and local climate strategies to ensure efficient funding allocation. Robust data collection and transparency are cited as critical in attracting investment, particularly in emerging markets where nearly 40 percent of projects require full financing.
“Now, more than ever, cities around the world are stepping up to lead in the climate fight,” said Asma Jhina, senior advisor at GCoM. “But they need access to funding and partnerships to deliver these projects.”
With extreme weather events rising, experts stress that closing the climate finance gap is essential to ensuring urban resilience and sustainability.
