Cities report 2,508 climate projects with $86B investment needs, a 23% rise from last year. Urgent funding is required to bridge the climate finance gap and turn strategies into action.
New data from CDP and the Global Covenant of Mayors for Climate & Energy (GCoM) highlights 2,508 climate-related projects across 611 cities in 75 countries, requiring $86 billion in investment for 2024—a 23% increase from last year.
Rising Investment Needs
Despite the surge, funding remains insufficient compared to the $800 billion annual investment needed by 2030, as emphasized at U20 last year.
Key Climate Sectors for 2024
- Water Management – 272 projects, $28B
- Transport – 397 projects, $19B
- Buildings & Energy Efficiency – 508 projects, $12B
The U.S. leads with 484 projects, followed by the UK (333), Brazil (204), and Portugal (181).
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The Climate Finance Gap
While urban climate finance doubled between 2017-2022, it remains far behind the $4.5 trillion annual need for climate mitigation and adaptation.
Katie Walsh, CDP Head of Climate Finance for Cities, States, & Regions, stated:
"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 Path Forward
CDP and its partners emphasize:
- Increased Public Investment – Mobilizing $800B annually to meet city climate goals.
- Private Sector Engagement – Encouraging financial collaboration to scale climate projects.
- Strategic Alignment – Ensuring NDCs (Nationally Determined Contributions) support city-level climate needs.
More than 75% of projects were reported by cities in CHAMP (Coalition for High Ambition Multilevel Partnerships) endorser countries, proving that transparent data is key to unlocking climate investments.
Urgency for Action
Katie Walsh further emphasized:
"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.”
Bottom Line
Cities are ready to lead climate action, but financial backing is essential. Bridging this funding gap is critical to turning climate strategies into real-world, resilient urban solutions.
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