The Subnational Investment Planning: Climate Finance Mobilization and Investment Planning Framework Supplement was published by the NDC Partnership and the Asian Development Bank (ADB) in October 2025. The supplement adapts the Climate Investment Planning and Mobilization Framework to the subnational level, supporting cities, municipalities, regions, and other local governments in turning climate goals into investment plans, financing strategies, and bankable projects.
Key insights:
Around 58% of the world’s population lives in urban areas, expected to rise to 70% by 2050.
Urban areas generate more than 70% of global CO₂ emissions, making cities and local governments central to climate action.
More than 90% of urban areas are coastal, meaning many cities are highly exposed to sea-level rise, extreme weather, and climate risks.
Between 50% and 80% of climate adaptation and mitigation actions are expected to be implemented at the subnational level.
Despite this role, only 27% of submitted NDCs as of 2024 have a strong urban focus.
Urban climate finance reached around USD 831 billion annually in 2021–2022, but major gaps remain, especially in developing regions, including the Middle East and North Africa, which received only USD 8 billion.
The supplement highlights key barriers such as weak enabling environments, limited fiscal capacity, low creditworthiness, fragmented governance, lack of bankable projects, and limited private sector engagement.
It recommends stronger vertical and horizontal coordination, better local climate data, green budgeting, project pipelines, finance strategies, risk mitigation tools, and partnerships with finance institutions.
