Mayors from G20 Countries Call for $800 Billion Annual Public Investment towards Climate Action in Cities by 2030

Mayors at the U20 Summit, the urban track of the G20, called for urban-focused public investment to help close the global emissions gap needed to meet the 1.5°C target 

Rio de Janeiro, November 16, 2024 – Today, at the Urban20 (U20) Summit, nearly 60 mayors and urban leaders, including mayors from the Global Covenant of Mayors (GCoM) and C40 Cities, called for at least $800 billion in annual public investment from national governments and development finance institutions by 2030. The investment is critical in deploying and scaling city-level climate projects around the world, paving the way for healthier, more sustainable, and economically vibrant urban environments. Their call comes as global leaders convene at the G20 and COP29, where negotiators are working to secure funding allocations for climate action across adaptation, mitigation, and loss and damage.

While cities account for more than 70% of global greenhouse gas emissions and face fast-rising urban populations and climate impacts, they also offer some of the most dynamic opportunities for rapid decarbonization and innovation. An $800 billion annual public investment in city-led projects could unlock this potential, complementing and leveraging private finance mobilization, and accelerating global climate progress as countries submit more ambitious national climate goals (or Nationally Determined Contributions) for COP30 next year. According to projections by GCoM, based on current targets and NDCs, cities committed to climate action could achieve up to 40% of the global emissions reduction gap between NDCs and a 1.5°C pathway by 2030.  

Investing in urban solutions like low-emission transport, clean energy, and climate-resilient infrastructure not only promises significant emission reductions but can also create millions of jobs and boost economic growth. With targeted funding, cities can become green growth engines, unlocking $23.9 trillion in returns by 2050 and transforming sectors such as transport, housing, and energy while driving economic development and innovation.

The call to finance urban climate action goes beyond infrastructure and economic growth – it’s about investing in people and ensuring a fair, inclusive urban future. With a billion more urban residents expected in the next decade, cities will be key to clean air, safe housing, and sustainable jobs. By financing urban climate solutions and supporting city-led initiatives that prioritize the most vulnerable, national governments and banks can drive inclusive economic growth that includes boosting public health and improving urban quality of life for all residents. 

Supporting vulnerable communities is a major imperative of a just transition. This is why mayors are also asking multilateral banks and national governments to allocate 40% of their low-interest concessional funding for city-led initiatives that prioritise low-income communities, deprived neighbourhoods, workers and other people in vulnerable situations.

During the Summit, speakers emphasized how finance will drive equitable urban development, shield vulnerable communities from the worst impacts of climate change, and ensure a just transition for all. They stressed that the need for climate leadership at a local and national level was more important than ever in order to reach the targets set by the Paris Agreement. 

“Cities may be on the frontlines of the climate emergency, but they are also leading the way in climate solutions that directly improve people’s lives. Investing in our cities is not just an investment in climate resilience—it’s a commitment to a healthier, more inclusive urban future. By securing $800 billion annually, cities worldwide can be empowered to drive the just transition that will protect vulnerable communities and create jobs that support a greener economy for everyone,” said Eduardo Paes, Mayor of Rio de Janeiro.

“As mayors, we see the urgency of climate action in our neighborhoods and communities every day. Cities can lead the charge on climate by reimagining urban spaces to be greener, healthier, and more sustainable. But to truly transform our cities and meet global climate goals, we need national governments and financial institutions to match our ambitions with real investment. Together, we can create cities that aren’t just resilient to climate change, but are vibrant, inclusive places where people thrive,” said Anne Hidalgo, Mayor of Paris.

Closing the Urban Finance Gap 

Current financial flows fall short of what is needed. The 2024 State of Cities Climate Finance report shows that while $830 billion was invested annually in urban climate finance between 2021 and 2022, this remains well below the $4.5 trillion needed by 2030 to achieve the necessary mitigation and adaptation measures in cities. As of 2021, public investment in urban climate projects sits at only $183 billion per year, which must rise by 17% – $800 billion annually by 2030 – to close the urban climate finance gap. 

Urban leaders are calling for $800 billion in public investment to cover around 20% of the urban climate finance need and serve as a catalyst for additional private sector funding. They are urging national governments and development finance institutions to prioritize urban initiatives, using concessional finance—such as grants and low-interest loans—to mobilize further private investment.

Today’s call builds on a growing recognition of the need to fund city climate ambitions to support the goals of the Paris Agreement and drive the energy transition. It follows a well-received open-letter that mayors of major global cities wrote earlier this year to the heads of all MDBs asking them to include urban climate action and finance in their corporate and climate strategies and integrate cities and urban climate action in their country and sector-level assistance strategies.  

“Urban climate finance must be a top priority for governments and multilateral banks, not just because it addresses climate risks, but because it unlocks enormous potential for job creation, innovation, and improved urban living. The call is ambitious, but the timing is right—especially as COP29 considers a new global climate finance architecture. Cities, states, and regions, working through the CHAMP initiative, can accelerate the shift to a low-carbon, cleaner, resilient, and more affordable economy,” said Laurence Tubiana, CEO of the European Climate Foundation.

“The financial ask made clear in the High-Level Report 2024 State of Cities Climate Finance by CCFLA, unveiled during the NYCW September 2024, is the clearest signal to date that the world needs a substantial increase in public investment to drive sustainable and scalable climate action for urban transformation. Concessional finance is particularly crucial to de-risk climate investments and build bankable pipelines for underserved cities and communities. The CIF’s emerging Climate Smart Cities program aspires to provide this financing, bringing together the MDBs to work as a system and partner with C40, GCoM, and CCFLA networks to empower cities to lead on climate and implement solutions that reduce emissions, protect lives, livelihoods and people’s habitats,” said Tariye Gbadegesin, Chief Executive Officer of the Climate Investment Funds.

“Now is the time to stop fretting about what might have been and start doubling down on financing climate solutions in US cities and across the world. National governments, development banks and the private sector can and must drive a new wave of economic growth in urban areas where billions of lives are now at risk. Coordinated investment in these cities will open up a multitude of opportunities across the world, not just to slash carbon emissions, but to create jobs, build needed food and water infrastructure, improve health, save lives and enhance safety and security for all of us,” said Gina McCarthy, Managing Co-Chair of America Is All In and former White House national climate advisor.

Supporting More Ambitious NDCs

A major opportunity awaits at COP29 in Baku, where negotiators aim to establish funding allocations for climate action across adaptation, mitigation, and loss and damage. City leaders urge that a significant share of the new climate finance funds, known as the New Collective Quantified Goal (NCQG), be allocated directly to urban initiatives in developing countries, where climate risks are most pronounced and support for low-income communities is critical. For the new climate funds to effectively address the climate crisis, it must prioritize equitable, city-led actions across all three funding themes.

The call also builds on mayors’ push at the Local Climate Action Summit, hosted by the COP28 Presidency and Bloomberg Philanthropies, where over 500 subnational leaders urged national leaders to integrate local climate solutions into their Nationally Determined Contributions (NDCs). It also launched the Coalition for High Ambition Multi-Level Partnerships (CHAMP),  now endorsed by 74 countries. CHAMP supports more ambitious climate action by including city and local governments when developing national climate plans. But ensuring these goals are met will require massive investments for city climate projects.

“Countries can nearly double their climate ambitions by including city climate plans in their national strategies. Investing in greening cities means a more resilient, healthy, and sustainable future for everyone. Meeting the $800 billion target with public funds will unlock private sector investment to create jobs and reduce climate tragedies in cities. This financial commitment will catalyze public-private partnerships that are essential to building sustainable cities and protecting the communities that need it most,” said Gregor Robertson, GCoM Global Ambassador & Special Envoy for Cities in CHAMP.

Proven Examples

Cities across the globe are already leading the way in ambitious climate action. Examples of these transformative urban initiatives include:

• New York City, USA – Through its Green Building Codes, New York is reducing emissions from large buildings, creating thousands of green jobs, and generating 35 megawatts of new solar capacity annually.
• Quezon City, Philippines – By committing public investment to climate-smart infrastructure, Quezon City is making significant strides to reduce emissions and achieve a 25% reduction in GHGs, while creating new green jobs and attracting private investment.
• Medellin, Colombia – With a comprehensive climate action plan, Medellin is implementing projects to retrofit buildings, expand renewable energy, and improve public transportation to reduce emissions and create healthier living environments.
• London, UK – To reach net-zero emissions, London will invest over £75 billion by 2030 in electric vehicle infrastructure, heat pumps, and district heating systems, supporting significant emissions reductions and job creation.

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About the Global Covenant of Mayors for Climate & Energy (GCoM): 

GCoM is the largest global alliance for city climate leadership, uniting a global coalition of over 13,000 cities and local governments and 100+ supporting partners. The cities and partners of GCoM share a long-term vision of supporting voluntary action to combat climate change and towards a resilient and low-emission society. GCoM serves cities and local governments by mobilizing and supporting ambitious, measurable, planned climate and energy action in their communities by working with city/regional networks, national governments, and other partners to achieve our vision. The coalition comprises cities across 6 continents and 146 countries, representing over 1 billion people or more than 13 percent of the global population. 

To learn more about GCoM, please visit our website, or follow us on X, Instagram, Facebook, and LinkedIn.

About C40 Cities 

C40 is a network of nearly 100 mayors of the world’s leading cities working to deliver the urgent action needed right now to confront the climate crisis and create a future where everyone, everywhere, can thrive. Mayors of C40 cities are committed to using a science-based and people-focused approach to help the world limit global heating to 1.5°C and build healthy, equitable and resilient communities. We work alongside a broad coalition of representatives from labour, business, the youth climate movement and civil society to support mayors to halve emissions by 2030 and help phase out fossil use while increasing urban climate resilience and equity. 

The current co-chairs of C40 are Mayor Sadiq Khan of London, United Kingdom, and Mayor Yvonne Aki-Sawyerr of Freetown, Sierra Leone; three-term Mayor of New York City Michael R. Bloomberg serves as President of the Board. C40’s work is made possible by our three strategic funders: Bloomberg Philanthropies, Children’s Investment Fund Foundation and Realdania.

To learn more about the work of C40 and our cities, please visit our website or follow us on X, Instagram, Facebook and LinkedIn.