Massively scaling finance for subnational climate action: C40 and GCoM launch guidance at gathering of African leaders

The report offers strategies on how national governments can scale up climate action increasing finance for local governments 

C40 Cities and the Global Covenant of Mayors for Climate & Energy (GCoM) released a report, on Wednesday 19 February, during the Green and Resilient Urbanshift Africa Forum 2025, in Nairobi, titled How National Governments Can Increase Finance for Subnational Climate Action. This report was developed by C40 Cities and the GCoM, with support from Bloomberg Philanthropies, as a resource for national government members of the Coalition for High Ambition Multilevel Partnerships (CHAMP), to provide them with implementation options, proven financial techniques, and coordination frameworks that can significantly increase finance for subnational climate action – in line with their CHAMP pledge.

Launched in 2023 by the COP28 Presidency and Bloomberg Philanthropies, the Coalition of High Ambition Multilevel Partnerships (CHAMP) brings together 75 national governments committed to developing, financing and implementing climate strategies in partnership with their cities, towns, states and regions. The CHAMP coalition represents 34% of the global population, 58% of global GDP, and 36% of global emissions. Members of the CHAMP coalition are expected to bring their updated national climate strategies, with clear examples of collaboration with subnationals to COP 30 in Belem at the end of the year.

Urban areas account for nearly 70% of global greenhouse gas emissions, making local-level action imperative in meeting the 2030 emissions reduction targets. Despite the essential role of cities and regions, the financial resources required to implement climate action at the subnational level remain critically below the amount needed, with an estimated US$4.3 trillion annually needed only for urban mitigation. The report, How National Governments Can Increase Finance for Subnational Climate Action, identifies practical, scalable financial techniques and coordination frameworks that governments can employ to develop bankable pipelines of subnational climate projects. 

For Andy Deacon, GCoM Co-Managing Director, this report is an essential resource that can help CHAMP countries scale support for their subnational governments: 

“To deliver the actions needed to fight the climate crisis in cities, national governments can clear the way and provide mechanisms to move beyond a project by project approach and deliver on the huge urban investment opportunity. This report provides  them with practical examples and advice on next step to channel climate finance directly to subnational actors—especially mayors, who are on the front lines of addressing the challenges that impact people’s daily lives.”  

The report fills a knowledge gap by identifying a range of proven finance techniques and mechanisms that can be deployed by national governments to unlock finance at scale by developing investment platforms and pipelines of subnational climate projects, in close partnership with subnational governments, development partners, and the private sector. 

Andrea Fernandez, a Managing Director at C40 and their finance strategy lead, highlights that the report defines specific implementation options of how national governments can significantly increase finance for subnational climate action.

“This is a powerful resource to help countries that have endorsed CHAMP understand the ways they can help drive efficient and scalable climate investments through partnerships with subnational governments, development partners, and the private sector. Developing investment platforms to deliver on commitments made through CHAMP  is essential to implement the measures needed to cut emissions, enhance resilience and enable countries to unlock innovation and clean economic growth in cities”. 

The Report was co-authored by Dr. Barbara Samuels, Executive Director of the Global Clearinghouse for Development Finance and Emilie Maehara, Head of Finance Engagement and Partnerships of C40 Cities Leadership Group and the Global Covenant of Mayors for Climate and Energy (GCoM). Over 25 practitioners from the following organizations also contributed to the final report: Asian Development Bank (ADB), Development Bank of Latin America (CAF), European Bank for Reconstruction and Development (EBRD), French Development Agency (AFD), Interamerican Development Bank (IADB), International Finance Corporation (IFC), Government of Kenya, World Bank, and United Nations Capital Development Fund (UNCDF). The report builds on mainstream recognized expert research, leveraging a plethora of studies conducted by Multilateral Development Banks (MDBs), other development partners, the United Nations, the International Monetary Fund, and the private sector, including international rating agencies.

Want to know How National Governments Can Increase Finance for Subnational Climate Action? Access the full Report here.