Addressing sustainable urban development issues and delivering the finance needed for climate mitigation and adaptation require closing the city finance gap. Structural changes and improved capacity for city climate finance in developing countries are necessary to overcome the prevalent barriers to accessing available financing. Well-designed and well-managed city climate finance is key for effective interventions to unlock investments and deliver implementation. This policy brief offers the following recommendations to local policymakers in developing economies to overcome critical obstacles to closing cities' climate finance gaps: (i) prepare city-level climate finance plans and investment strategies; (ii) diversify financial approaches and build community-driven sustainability financing; (iii) improve internal capacity, information disclosure, and prudential regulations; (iv) develop bankable projects and provide incentives to strengthen private sector engagement.

4 p.

2409-3017