The developing world is currently undergoing fast urbanization, and urban infrastructure systems built today are likely to influence global greenhouse gas emissions and energy consumption patterns for decades to come. This study draws on the analysis of 1994–2014 climate finance investments by five major multilateral climate funds that have a record of directly supporting urban climate mitigation and adaptation actions in cities across developing countries. The analysis indicates that the administered funds provided very limited support to urban climate finance across the developing world. In middle-income countries mitigation projects within transport sector dominated both urban multilateral climate finance and co-finance. Cities in low-income countries attracted non-considerable amounts of urban climate finance, most of which were supporting urban adaptation efforts. The study concludes by outlining that multilateral climate funds should give higher priority to urban climate finance on their investment portfolios with a particular emphasis on rapidly urbanizing cities in low-income countries.
Keywords: Cities, climate change, climate finance, developing countries, urban infrastructure
Citation: Causevic, A. and S. Selvakkumaran. 2018 Journal of Sustainable Finance & Investment 8(3):275-299