Climate finance for the urban poor: A review of global climate funds

The new Cities Alliance report Climate Finance for the Urban Poor: A Review of Global Climate Funds, reveals that only 3.5 per cent (USD 1.2 billion) of global climate finance has been allocated to projects targeting informal settlements and the urban poor, in the last two decades. This pressing challenge highlights a critical funding gap that must be addressed to better support climate adaptation and mitigation efforts for low-income city residents, who are disproportionately affected by extreme climate impacts.

The report includes an in-depth look at two of such projects offering insights for scaling up climate finance in these critical areas. Without adequate climate finance for action, communities become increasingly vulnerable to the climate crisis and unable to meet local and global development goals. It also provides key recommendations for donors, national and local governments, and other urban actors on how to increase and better target climate finance to the urban poor.