A study published on Saturday revealed that cities, especially those in low-income economies, are receiving only a small fraction of the necessary funding for climate financing. This finding, reported by Reuters, underscores the urgent need for additional financial commitments to increase cities’ capacity to combat climate risks and reduce global emissions. The Climate Change Financing Lead Agency (CCFLA) of the cities recognized that cities are at the forefront of climate threats, responsible for a third of global emissions, but require more financial support.

Major global banks conducted a comprehensive study, which found that cities have only received 1% of the funding required for climate change adaptation and mitigation efforts. It is estimated that these efforts will cost a staggering $5.4 trillion by 2030. Despite the crucial role that banks play in climate financing, their implementation has been criticized for the slow approval process of urban climate-related projects. The study analyzed data from 815 such projects conducted by the World Bank.

It is disheartening to note that despite being the most affected by climate change, with African countries bearing the brunt of its impacts, Sub-Saharan Africa and North Africa have received the least amount of city climate financing. The study highlights factors such as vulnerability and limited access to capital markets as contributing to this disparity. This calls for urgent action to address the imbalance and ensure that cities in these regions receive the necessary financial resources to tackle climate change effectively.