Cities worldwide require $86 billion for climate projects in 2024—a 23% increase from last year—yet funding remains a major hurdle, with 48% of projects still in early stages due to technical and financial constraints.

Key Investment Needs

CDP and the Global Covenant of Mayors for Climate & Energy (GCoM) report 2,508 projects across 611 cities in 75 countries, with top investment priorities including:

• 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 U.K. (333), Brazil (204), and Portugal (181).

The Funding Gap

Despite urban climate finance more than doubling between 2017 and 2022, cities still fall short of the $800 billion annual public investment needed by 2030.

Scaling Climate Finance: The Way Forward

To bridge this gap, CDP and partners emphasize:

✅ Increased Public Investment – Mobilizing $800B annually for city climate projects.
✅ Private Sector Engagement – Partnering to scale finance and cut emissions.
✅ Policy Alignment – Ensuring Nationally Determined Contributions (NDCs) reflect local needs.

With 75% of projects reported by cities in high-ambition climate partnerships, data transparency remains key to unlocking investments and accelerating action.

Bottom Line

Cities are stepping up, but without urgent financial backing, climate goals risk stagnation. Addressing the funding gap is crucial to turning ambition into impact.

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