Today, rapid urbanization—with nearly 70% of the global population expected to live in urban areas by 2050—is increasing pressure on subnational governments. Responsible for over 70% of global CO₂ emissions, these entities play a pivotal role in climate action, particularly given their exposure to climate impacts such as sea-level rise and extreme weather events. SNGs, especially prevalent in Asia-Pacific, are central to achieving national and global targets, including NDC, NAP, LT-LED, and SDGs. Cities, as hubs generating 80% of global GDP, can significantly advance climate resilience, disaster risk reduction, and economic transformation through targeted subnational investments.
However, financing remains a significant barrier. Despite global urban climate finance flows averaging $831 billion annually (2021–2022), considerable funding gaps persist, particularly in developing regions. Challenges such as weak enabling environments, low institutional capacity, limited creditworthiness, and a shortage of bankable projects further limit financial access.
The Subnational Investment Planning Supplement, building on the Climate Investment Planning and Mobilization Framework, addresses these issues by guiding stakeholders in mobilizing effective subnational climate finance through adaptable tools and insights tailored to local contexts and priorities. (Available soon)
Case Studies
Support resources
The following resources can be considered. Explore the NDC Partnership Knowledge Portal Climate Toolbox for additional subnational investment planning resources.
