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Climate finance for cities: how can climate funds best support low-carbon and climate resilient urban development?
Published by: ODI
About
This paper reviews the approaches taken by multilateral climate funds in the period 2010-2014 to support low-emission and climate-resilient development in developing country cities. It identifies US$842 million in approved climate finance for explicitly urban projects, which equates to just over one in every ten dollars spent on climate finance over these five years. The majority of this finance has supported low-carbon urban transport systems in fast-growing middle-income countries. Adaptation funds financed only a handful of explicitly urban projects in the review period. The report highlights the following implications for future climate fund engagement at the urban level: 1) Climate funds must focus on catalysing action by others; 2) Climate funds need to develop appropriate access arrangements for reaching the most vulnerable urban residents; 3) Main-streaming climate risks and mitigation into local governance must remain a priority, but is not a solution by itself; 4) Climate funds can expand their impact by supporting urban project preparation.
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General Information
| SDGs |   |
|---|---|
| Published | 2015 |
| Thematic Area | Sustainability |
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Make cities inclusive, safe, resilient and sustainable
More than half of the world’s population now live in urban areas. By 2050, that figure will have risen to 6.5 billion people – two-thirds of humanity. Sustainable development cannot be achieved without significantly transforming the way we build and manage our urban spaces.
The rapid growth of cities in the developing world, coupled with increasing rural to urban migration, has led to a boom in mega-cities. In 1990, there were ten mega-cities with 10 million inhabitants or more. In 2014, there are 28 mega-cities, home to a total 453 million people.
Extreme poverty is often concentrated in urban spaces, and national and city governments struggle to accommodate the rising population in these areas. Making cities safe and sustainable means ensuring access to safe and affordable housing, and upgrading slum settlements. It also involves investment in public transport, creating green public spaces, and improving urban planning and management in a way that is both participatory and inclusive.
Sustainable city life is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 11.
Make cities inclusive, safe, resilient and sustainable
More than half of the world’s population now live in urban areas. By 2050, that figure will have risen to 6.5 billion people – two-thirds of humanity. Sustainable development cannot be achieved without significantly transforming the way we build and manage our urban spaces.
The rapid growth of cities in the developing world, coupled with increasing rural to urban migration, has led to a boom in mega-cities. In 1990, there were ten mega-cities with 10 million inhabitants or more. In 2014, there are 28 mega-cities, home to a total 453 million people.
Extreme poverty is often concentrated in urban spaces, and national and city governments struggle to accommodate the rising population in these areas. Making cities safe and sustainable means ensuring access to safe and affordable housing, and upgrading slum settlements. It also involves investment in public transport, creating green public spaces, and improving urban planning and management in a way that is both participatory and inclusive.
Sustainable city life is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 11.
The SDG Fund response
The UN Development System, through joint collaboration, can contribute to:
- promote sustainable urban local and national policies,
- support better spatial planning and design, to “optimize density, connectivity and diversity”
- advocate for a more equitable financing of urban initiatives.
For example,
- In April 2016 at the UN headquarters in New York, the SDG Fund hosted the Pritzker Architecture Prizeand brought together renowned architects such as Alejandro Aravena, Glenn Murcutt, Renzo Piano, Richard Rogers, Wang Shu, Thom Mayne, Richard Meier, and Christian de Portzamparc to explore links between contemporary society and the role of architecture to improve livelihoods. The SDG Fund is working to engage leading world architects in social housing.
- In Mozambique, the SDG Fund is providing training opportunities on green construction using traditional techniques and materials. The objective is to create residences that are less expensive while also preserving the environment.
- In Honduras, the SDG-F supports the protection of the cultural and natural heritage in the Ruta Lenca. The programme aims at sustaining culture and heritage for the Lenca people by generating income opportunities through the revitalization of the Lenca culture and the development of micro-businesses in the area, led by youth and women, geared towards sustainable tourism.
The SDG Fund response
The UN Development System, through joint collaboration, can contribute to:
- promote sustainable urban local and national policies,
- support better spatial planning and design, to “optimize density, connectivity and diversity”
- advocate for a more equitable financing of urban initiatives.
For example,
- In April 2016 at the UN headquarters in New York, the SDG Fund hosted the Pritzker Architecture Prizeand brought together renowned architects such as Alejandro Aravena, Glenn Murcutt, Renzo Piano, Richard Rogers, Wang Shu, Thom Mayne, Richard Meier, and Christian de Portzamparc to explore links between contemporary society and the role of architecture to improve livelihoods. The SDG Fund is working to engage leading world architects in social housing.
- In Mozambique, the SDG Fund is providing training opportunities on green construction using traditional techniques and materials. The objective is to create residences that are less expensive while also preserving the environment.
- In Honduras, the SDG-F supports the protection of the cultural and natural heritage in the Ruta Lenca. The programme aims at sustaining culture and heritage for the Lenca people by generating income opportunities through the revitalization of the Lenca culture and the development of micro-businesses in the area, led by youth and women, geared towards sustainable tourism.
- By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums
- By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons
- By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries
- Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
- By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations
- By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
- By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities
- Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning
- By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels
- Support least developed countries, including through financial and technical assistance, in building sustainable and resilient buildings utilizing local materials
- By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums
- By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons
- By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries
- Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
- By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations
- By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
- By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities
- Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning
- By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels
- Support least developed countries, including through financial and technical assistance, in building sustainable and resilient buildings utilizing local materials
Take urgent action to combat climate change and its impacts
There is no country in the world that is not seeing first-hand the drastic effects of climate change. Greenhouse gas emissions continue to rise, and are now more than 50 percent higher than their 1990 level. Further, global warming is causing long-lasting changes to our climate system, which threatens irreversible consequences if we do not take action now.
The annual average losses from just earthquakes, tsunamis, tropical cyclones and flooding count in the hundreds of billions of dollars, requiring an investment of US$ 6 billion annually in disaster risk management alone. The goal aims to mobilize $100 billion annually by 2020 to address the needs of developing countries and help mitigate climate-related disasters.
Strengthening the resilience and adaptive capacity of more vulnerable regions, such as land locked countries and island states, must go hand in hand with efforts to raise awareness and integrate measures into national policies and strategies. It is still possible, with the political will and a wide array of technological measures, to limit the increase in global mean temperature to two degrees Celsius above pre-industrial levels. This requires urgent collective action.
Addressing climate change is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 13.
Take urgent action to combat climate change and its impacts
There is no country in the world that is not seeing first-hand the drastic effects of climate change. Greenhouse gas emissions continue to rise, and are now more than 50 percent higher than their 1990 level. Further, global warming is causing long-lasting changes to our climate system, which threatens irreversible consequences if we do not take action now.
The annual average losses from just earthquakes, tsunamis, tropical cyclones and flooding count in the hundreds of billions of dollars, requiring an investment of US$ 6 billion annually in disaster risk management alone. The goal aims to mobilize $100 billion annually by 2020 to address the needs of developing countries and help mitigate climate-related disasters.
Strengthening the resilience and adaptive capacity of more vulnerable regions, such as land locked countries and island states, must go hand in hand with efforts to raise awareness and integrate measures into national policies and strategies. It is still possible, with the political will and a wide array of technological measures, to limit the increase in global mean temperature to two degrees Celsius above pre-industrial levels. This requires urgent collective action.
Addressing climate change is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 13.
The SDG Fund response
The SDG Fund joint programmes take into account climate change adaptation considerations along the project cycle. As an example, a key element to mainstreaming climate change is the use of a climate lens.
The following criteria are essential elements observed:
- The extent to which the policy, plan, or project under could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
For example,
- In Cuba, the SDG Fund is strengthening resilience and improving access to water in tackling the impacts of recent droughts, noted as the worst in recent history, affecting more than one million people.
- In Fiji, a SDG Fund programme is building the capacity of young farmers in organic agriculture for climate resilience. Organic agriculture is a production system that sustains the health of soils, ecosystems and people.
- In Mozambique, the SDG Fund is providing training opportunities on green construction using traditional techniques and materials. The objective is to create residences that are less expensive while also preserving the environment.
The SDG Fund response
The SDG Fund joint programmes take into account climate change adaptation considerations along the project cycle. As an example, a key element to mainstreaming climate change is the use of a climate lens.
The following criteria are essential elements observed:
- The extent to which the policy, plan, or project under could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
For example,
- In Cuba, the SDG Fund is strengthening resilience and improving access to water in tackling the impacts of recent droughts, noted as the worst in recent history, affecting more than one million people.
- In Fiji, a SDG Fund programme is building the capacity of young farmers in organic agriculture for climate resilience. Organic agriculture is a production system that sustains the health of soils, ecosystems and people.
- In Mozambique, the SDG Fund is providing training opportunities on green construction using traditional techniques and materials. The objective is to create residences that are less expensive while also preserving the environment.
- Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
- Integrate climate change measures into national policies, strategies and planning
- Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
- Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible
- Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities
* Acknowledging that the United Nations Framework Convention on Climate Change is the primary international, intergovernmental forum for negotiating the global response to climate change.
[format] => full_html [safe_value] =>- Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
- Integrate climate change measures into national policies, strategies and planning
- Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
- Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible
- Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities
* Acknowledging that the United Nations Framework Convention on Climate Change is the primary international, intergovernmental forum for negotiating the global response to climate change.
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The SDG Fund definition involves:
- Inclusion and participation in programme initiatives within the vision of a Human Rights-based approach
- Economic use of resources in programme implementation
- Sustainability of programme achievements after termination of activities
- Mainstreaming environment and climate change in development programmes
For our programmes integrating sustainability requires an analysis of the governance architecture and the different stages of the programme cycle. At the national level, this could include the formulation of national policies, long term and multi-year development plans, sectoral budgetary allocation processes, and regulatory processes. At the level of projects on the ground, climate change adaptation considerations might need to be factored within specific elements of the project cycle.
As an example, a key element to mainstreaming climate change is the use of a climate lens. The following criteria are essential elements to be observed:
- The extent to which the policy, plan, or project under consideration could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
The following publications offer useful guidance for introducing environmental sustainability and climate change sensitivity into development programmes:
- Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance (OECD, 2009)
- Mainstreaming Climate Change Adaptation into Development Planning: A Guide for Practitioners (UNDP-UNEP Poverty-Environment Initiative, 2011)
See also this list of references from the UNFCCC on how to mainstream climate change into development programming.
[summary] => [format] => full_html [safe_value] =>The concept of long term sustainability of development programmes is constantly evolving.
The SDG Fund definition involves:
- Inclusion and participation in programme initiatives within the vision of a Human Rights-based approach
- Economic use of resources in programme implementation
- Sustainability of programme achievements after termination of activities
- Mainstreaming environment and climate change in development programmes
For our programmes integrating sustainability requires an analysis of the governance architecture and the different stages of the programme cycle. At the national level, this could include the formulation of national policies, long term and multi-year development plans, sectoral budgetary allocation processes, and regulatory processes. At the level of projects on the ground, climate change adaptation considerations might need to be factored within specific elements of the project cycle.
As an example, a key element to mainstreaming climate change is the use of a climate lens. The following criteria are essential elements to be observed:
- The extent to which the policy, plan, or project under consideration could be vulnerable to risks arising from climate variability and change
- The extent to which climate change risks have already been taken into consideration
- The extent to which the policy, plan, or project could inadvertently lead to increased vulnerability and maladaptation or miss important opportunities arising from climate change
The following publications offer useful guidance for introducing environmental sustainability and climate change sensitivity into development programmes:
- Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance (OECD, 2009)
- Mainstreaming Climate Change Adaptation into Development Planning: A Guide for Practitioners (UNDP-UNEP Poverty-Environment Initiative, 2011)
See also this list of references from the UNFCCC on how to mainstream climate change into development programming.
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It identifies US$842 million in approved climate finance for explicitly urban projects, which equates to just over one in every ten dollars spent on climate finance over these five years. The majority of this finance has supported low-carbon urban transport systems in fast-growing middle-income countries. Adaptation funds financed only a handful of explicitly urban projects in the review period. The report highlights the following implications for future climate fund engagement at the urban level: 1) Climate funds must focus on catalysing action by others; 2) Climate funds need to develop appropriate access arrangements for reaching the most vulnerable urban residents; 3) Main-streaming climate risks and mitigation into local governance must remain a priority, but is not a solution by itself; 4) Climate funds can expand their impact by supporting urban project preparation. [format] => [safe_value] => This paper reviews the approaches taken by multilateral climate funds in the period 2010-2014 to support low-emission and climate-resilient development in developing country cities. It identifies US$842 million in approved climate finance for explicitly urban projects, which equates to just over one in every ten dollars spent on climate finance over these five years. The majority of this finance has supported low-carbon urban transport systems in fast-growing middle-income countries. Adaptation funds financed only a handful of explicitly urban projects in the review period. The report highlights the following implications for future climate fund engagement at the urban level: 1) Climate funds must focus on catalysing action by others; 2) Climate funds need to develop appropriate access arrangements for reaching the most vulnerable urban residents; 3) Main-streaming climate risks and mitigation into local governance must remain a priority, but is not a solution by itself; 4) Climate funds can expand their impact by supporting urban project preparation. ) ) ) [field_year] => Array ( [und] => Array ( [0] => Array ( [value] => 2015-01-01 00:00:00 [timezone] => America/New_York [timezone_db] => America/New_York [date_type] => datetime ) ) ) [field_publication_keywords] => Array ( ) [field_publisher] => Array ( [und] => Array ( [0] => Array ( [value] => ODI [format] => [safe_value] => ODI ) ) ) [field_region] => Array ( ) [field_thumb] => Array ( [und] => Array ( [0] => Array ( [fid] => 1571 [uid] => 1 [filename] => 9660-1.jpg [uri] => public://9660-1.jpg [filemime] => image/jpeg [filesize] => 138930 [status] => 1 [timestamp] => 1485793083 [type] => image [field_file_image_alt_text] => Array ( ) [field_file_image_title_text] => Array ( ) [rdf_mapping] => Array ( ) [metadata] => Array ( [height] => 841 [width] => 595 ) [alt] => [title] => [height] => 841 [width] => 595 ) ) ) [field_featured] => Array ( ) [field_file_fr] => Array ( ) [field_file_ar] => Array ( ) [field_file_pt] => Array ( ) [field_file_es] => Array ( ) [field_external_link] => Array ( [und] => Array ( [0] => Array ( [value] => https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/9660.pdf [format] => [safe_value] => https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/9660.pdf ) ) ) [field_external_link_text] => Array ( [und] => Array ( [0] => Array ( [value] => External Link [format] => [safe_value] => External Link ) ) ) [rdf_mapping] => Array ( [rdftype] => Array ( [0] => sioc:Item [1] => foaf:Document ) [title] => Array ( [predicates] => Array ( [0] => dc:title ) ) [created] => Array ( [predicates] => Array ( [0] => dc:date [1] => dc:created ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [changed] => Array ( [predicates] => Array ( [0] => dc:modified ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) [body] => Array ( [predicates] => Array ( [0] => content:encoded ) ) [uid] => Array ( [predicates] => Array ( [0] => sioc:has_creator ) [type] => rel ) [name] => Array ( [predicates] => Array ( [0] => foaf:name ) ) [comment_count] => Array ( [predicates] => Array ( [0] => sioc:num_replies ) [datatype] => xsd:integer ) [last_activity] => Array ( [predicates] => Array ( [0] => sioc:last_activity_date ) [datatype] => xsd:dateTime [callback] => date_iso8601 ) ) [name] => Library Manager 1 [picture] => 0 [data] => a:2:{s:7:"contact";i:0;s:7:"overlay";i:1;} [entity_view_prepared] => 1 ) [#items] => Array ( [0] => Array ( [value] => https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/9660.pdf [format] => [safe_value] => https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/9660.pdf ) ) [#formatter] => text_plain [0] => Array ( [#markup] => https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/9660.pdf ) [#description] => Please enter the full URL, e.g. http://www.example.com [#printed] => 1 )