Cities are sounding the alarm: they need a staggering $105 billion to fortify themselves against the escalating climate crisis. This eye-opening figure, revealed by CDP’s 2025 Global Snapshot, marks a 22% surge in funding requirements compared to the previous year. But here’s where it gets even more critical: despite this growing ambition, 87% of projects are still begging for financial backing, with half yet to secure a single dollar. So, what’s driving this unprecedented demand, and why are cities struggling to bridge the gap? Let’s dive in.
For the first time in history, the world’s urban centers are collectively seeking over $100 billion to fund climate resilience and infrastructure projects. This leap from $86 billion in 2024 to $105 billion in 2025 isn’t just a number—it’s a testament to the urgency cities face in combating climate change. The report, a collaboration between CDP and the Global Covenant of Mayors for Climate & Energy (GCoM), draws on data from 507 cities across 62 countries, encompassing 2,164 projects. Released during the COP30 Local Leaders Forum in Rio de Janeiro, it paints a vivid picture of cities racing against time, even as access to capital remains a stubborn hurdle.
But here’s where it gets controversial: while buildings and energy efficiency projects dominate the 2025 portfolio with 420 initiatives, green infrastructure and transport projects are gaining momentum, with 338 and 336 projects, respectively. Cities like Porto are electrifying 43% of their bus fleets by 2027, Freetown is planting 1.2 million trees under its “Treetown” initiative, and Buenos Aires is launching a community solar program set to slash 217,000 tonnes of CO₂ annually. Yet, these ambitious plans are often stalled by a glaring lack of funds. Is the private sector doing enough? Are governments prioritizing urban climate needs? These questions are sparking heated debates.
And this is the part most people miss: nature-based solutions are emerging as a game-changer. Between 2020 and 2024, projects focused on biodiversity, water resilience, and green urban spaces quadrupled, rising from 7% to 15% of total disclosed initiatives. Cities are increasingly turning to tree restoration, wetland recovery, and green corridors to combat heat stress and enhance livability. But without consistent funding, these solutions risk remaining on the drawing board. How can we ensure these projects get the financial support they deserve?
The $105 billion cities are currently seeking is just the tip of the iceberg. Global estimates suggest urban areas need a whopping $4.5 trillion annually for climate mitigation and adaptation. Yet, less than 10% of total climate finance reaches cities, leaving local governments dependent on national or multilateral intermediaries. This disparity is even starker in emerging markets, where 40% of projects are fully unfunded, compared to 22% in developed economies. CDP and GCoM are urging policymakers and investors to act now, proposing measures like integrating local climate priorities into Nationally Determined Contributions (NDCs) and expanding initiatives like the Coalition for High Ambition Multilevel Partnerships (CHAMP).
Here’s a thought-provoking question: If cities are on the frontlines of climate action, why aren’t they getting the financial firepower they need? Katie Walsh, CDP’s Head of City Climate Finance, emphasizes the urgency: “The financing tap for cities, especially in developing economies, must be fully opened to turn plans into reality.” Asma Jhina, Senior Advisor at GCoM, adds, “The gap between ambition and finance remains stark.” As COP30 approaches, the message is clear: empowering cities to act is no longer optional—it’s essential for achieving global climate goals.
So, what do you think? Are we doing enough to support cities in their fight against climate change? Share your thoughts in the comments below, and let’s keep this critical conversation going.
