Urgent Call from World’s Cities for $86 Billion of Investment in Next Generation of Climate Infrastructure Projects

• 2,508 climate-related projects reported in 611 cities across 75 countries in 2024 
• Total reported investment needs for projects surged by 23% in 2024, reaching US$86 billion 
• Nearly half (48%) of projects remain in early development stages, requiring technical and financial support 
• Top global sectors of projects seeking financing are buildings & energy efficiency, transport and Nature-based solutions, biodiversity & urban green spaces, highlighting the demand especially for greater adaptation and resilience action in cities  
• The United States has the highest number of reported projects with 484 projects, followed by the United Kingdom (333 projects), Brazil (204 projects), and Portugal (181 projects)

February 18, 2025, London: As cities take a leading role in climate action, new data from CDP – the world’s independent environmental disclosure system – highlights the urgent need for climate finance to support urban infrastructure projects globally.

The 2024 Global Snapshot, developed in partnership with the Global Covenant of Mayors for Climate & Energy (GCoM), reveals that 611 cities across 75 countries have disclosed 2,508 climate-related projects through CDP-ICLEI Track in 2024, with a total investment requirement of US$86 billion. Demand for climate finance in cities is increasing year-on-year as reported investment needs surged by 23% in 2024. However, this remains only a fraction of the US$800 billion in annual public investment from national governments and development finance institutions required by 2030, as highlighted at U20 last year. Bridging this gap presents an unprecedented opportunity to unlock Earth-positive solutions and accelerate sustainable urban transformation.

Despite progress, urban climate finance remains severely insufficient. While urban climate finance flows more than doubled between 2017 and 2022, they still fall far short of the estimated US$4.5 trillion required annually through 2030 for climate mitigation and adaptation in cities. With 86% of the reported projects actively seeking funding, and 40% of projects in emerging markets and developing economies (EMDEs) requiring full financing, there is a pressing need for targeted investment to unlock these essential climate solutions.  The top three sectors for investment in 2024 are:

• Water management – 272 projects (US$28 billion)
• Transport – 397 projects (US$19 billion)
• Buildings & energy efficiency – 508 projects (US$12 billion)

While developed economies report the highest number of projects, with Europe, North America and Latin America leading in numbers of reported projects; cities in EMDEs account for only 27% of total reported financing needs. This imbalance highlights the need for greater international support to ensure climate resilience in the most vulnerable urban areas.

Scaling Up Climate Finance: Key Actions

Cities are tackling the climate crisis, but greater support is needed, especially in emerging markets. CDP and partners call for:

• Increased Local Climate Finance: Mobilise at least $800 billion annually in public investment by 2030 to meet the $4.5 trillion city climate finance need.
• Private Sector Engagement: Foster investment-friendly conditions, collaborate with public financial institutions to drive finance at scale and mitigate GHG emissions and climate risks in cities.
• Alignment of National & Local Strategies: Ensure NDC strategies align with local needs for accessible, effective urban climate finance.

Robust and granular data on cities’ climate projects and investment needs is crucial to the success of initiatives like the Coalition for High Ambition Multilevel Partnerships (CHAMP) for climate action. With over 75% of projects (1,929) reported by cities in CHAMP endorser countries, CDP-ICLEI Track data can support national governments in better understanding local needs and priorities, aligning their NDC investment strategies, and informing their efforts to scale up city climate action.

As cities adapt to a world of more frequent extreme weather events and aim to reduce their environmental impact, increased transparency in data disclosure will be critical in unlocking investment and driving meaningful action.

Katie Walsh, CDP Head of Climate Finance for Cities, States, & Regions and North America Lead, said:

“Cities are leading the charge in the fight against climate change, but without urgent and substantial investment, their efforts will be hindered. The 23% rise in reported investment needs shows the growing scale of urban climate action, yet the funding gap remains a critical barrier. The figures from this year’s Global Snapshot reinforce a key message: cities are taking action, but they cannot do it alone.

“To make meaningful progress, we must empower local governments, especially in developing economies, with the financial support they need. It’s time to scale up climate finance, foster stronger cross-sector collaboration, and make Earth-positive decisions that will build resilient cities and ensure a sustainable future for all.”

Asma Jhina, Senior Advisor – Urban Climate Finance and Inclusive Action, Global Covenant of Mayors for Climate and Energy (GCoM), said: 

“Now, more than ever, cities around the world are stepping up to lead in the climate fight and are moving forward with critical urban infrastructure projects to build resilient communities for years to come. But they need access to funding and partnerships to deliver these projects, and the current CDP Global Snapshot highlights the urgent need for climate finance to support urban infrastructure projects globally.”

–Ends–

Notes to the editor

Snapshot: Each year, thousands of cities across the world are invited to participate in CDP-ICLEI Track, a comprehensive environmental questionnaire powered by CDP, the world’s leading environmental reporting platform. The CDP-ICLEI Track questionnaire captures city’s climate action and resiliency plans, greenhouse gas reduction targets and actions to mitigate and adapt to climate change.

A critical data point collected in the questionnaire is the number of city climate projects in need of financing and funding. This global snapshot is based on the self-disclosed responses to CDP-ICLEI Track in 2024, where local governments reported climate-related projects that are currently seeking funding and/or financing. Disclosed projects cover a wide range of sectors, from renewable energy production and low-carbon transportation to building retrofits and stormwater retention.

Press contacts

Samika Meshram-Jasinski – samika.meshram@cdp.net

About CDP

CDP is a global non-profit that runs the world’s only independent environmental disclosure system. As the founder of environmental reporting, we believe in transparency and the power of data to drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the information needed to enable Earth-positive decisions. We helped more than 24,800 companies and 1,100 cities, states and regions disclose their environmental impacts in 2024. Financial institutions with more than a quarter of the world’s institutional assets use CDP data to help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP integrates best-practice reporting standards and frameworks in one place. Our team is truly global, united by our shared desire to build a world where people, planet and profit are truly balanced.

Visit CDP.net or follow @CDP to find out more.

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 144 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 Twitter, Instagram, Facebook, and LinkedIn.