Cities will need unprecedented amounts of capital to achieve climate neutrality. Mobilising these resources with a clear priority to achieve maximum climate impact and societal co-benefits requires cities to understand the potential pathways towards climate-neutrality and their funding and financing needs. Investment planning is thus a core element of the journey and of a Climate City Contract.
Cities will indeed need multiple financial mechanisms/instruments, facilities, institutions, and funding programmes
to provide the capital needed to realise their climate ambition. Public funding alone will not be enough to achieve climate neutrality by 2030 - rerouting existing public investment streams and leveraging private and participatory finance are essential. Therefore it is important to effectively align public resources with private capital. Identifying new sources of international and national investment capital is important for cities to maximise the impact of their funds. This can be difficult but, across Europe, emerging good practices already enable cities to drive the financial aspects of their transition.
An Investment Plan Framework will guide cities with the capital and investment planning necessary for the Mission. As a central element of the Mission’s Climate City Contracts
, an Investment Plan will articulate how a Mission city will seek to strategically mobilise and organise public resources and to attract private capital to fund and finance their transformation, as outlined in their corresponding Climate City Contract Action Plans.