The Power of Cities

The Power of Cities:
Harnessing Low-carbon Urbanization for Climate Action
Alexandrina Platonova-Oquab
Apoorva Shenvi
© 2023 The World Bank Group
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Contents
Acknowledgements........................................................................................................................................................... 05
Abbreviations...................................................................................................................................................................... 06
Executive Summary and Recommendations 07

Chapter 1
17
Pursuing low-carbon urban growth in developing countries is critical for the
climate transition
1.1 Impact of urbanization trends on GHG emissions in rapidly urbanizing developing countries............................ 18
1.2 Opportunities and challenges in advancing low-carbon growth in cities in rapidly urbanizing countries......... 21
1.3 Role of multi-level climate governance in harnessing urban climate action........................................................... 24
Chapter 2
26
National climate change strategies lack robust consideration of urban climate action
2.1 NDCs and LTSs as bridges between national and urban decarbonization goals................................................... 27
2.2 Supporting integration of urban climate mitigation action into national climate change strategies................. 31
Chapter 3
31
Enhancing policy frameworks and institutional structures to support integration
3.1 Integrated policy frameworks...................................................................................................................................... 35
3.2 Integrated institutional structures............................................................................................................................... 40
Chapter 4
41
Strengthening finance mobilization at the local level for climate action
4.1 Limited capacity at city level is a barrier for mobilizing climate finance................................................................ 44
4.2 Integration of urban climate action into NDCs and LTSs can boost finance mobilization.................................... 45
Chapter 5
47
Urban diagnostics and integrated MRV systems to underpin integration
5.1 Role of diagnostic tools in facilitating integration of urban climate action into NDCs and LTSs......................... 48
5.2 Guide for selecting urban diagnostic tools and models............................................................................................ 52
5.3 Integrating systems for tracking climate action......................................................................................................... 59
Chapter 6
61
Readiness for urban climate action integration
6.1 Readiness Diagnostic Framework................................................................................................................................ 64
6.2 Levels of readiness......................................................................................................................................................... 64
6.3 Case study: Ghana’s readiness for urban climate action integration...................................................................... 72
References......................................................................................................................................................... 79
02
Boxes
1.1: Emergence of small- and medium sized cities as the dominant urban settlement type....................................... 20
1.2: City-level climate mitigation commitments................................................................................................................ 22
2.1: NDC and LTS: Key country-specific instruments for achieving Paris Agreement goals........................................ 27
2.2: Role of LTSs in decarbonizing development.............................................................................................................. 28
2.3: Low GHG emissions interventions for urban areas in Ethiopia’s LTS...................................................................... 29
2.4: Urban mitigation in India’s Long-Term Low-Carbon Development Strategy........................................................ 29
2.5: Nigeria’s long-term vision for its cities........................................................................................................................ 29
2.6: Linkages between Ethiopia’s NDC andLTS................................................................................................................. 31
2.7: Climate Action Tracker’s approach to assessing readiness of national governments to transition to zero-
emissions pathways.............................................................................................................................................................. 31
3.1: Climate change mainstreaming in national development planning—Bangladesh................................................ 37
3.2: Advancing urban development consistent with national development and climate priorities—South Africa 38
3.3: Alignment between mitigation goals in Ghana’s NDC with actions in Accra’s Climate Action Plan.................. 39
3.4: Assigning key responsibilities for climate action to lower levels of government in Kenya................................. 39
3.5: Aligning urban climate plans to national strategies—Addis Ababa, Ethiopia........................................................ 40
3.6: Collaboration and stakeholder engagement on climate at the local level—Cape Town, South Africa............. 41
3.7: Leveraging knowledge on climate action reporting through collaboration......................................................... 41
4.1: Main sources of climate finance available to cities..................................................................................................... 46
4.2: Climate responsive public financial management framework................................................................................. 46
5.1: Urban tools and models: Understanding common features to support tool selection......................................... 53
5.2: Forecasting sustainable growth scenarios for Semarang, Indonesia using Urban Performance......................... 57
5.3: MRV process as defined under UNFCCC..................................................................................................................... 59
5.4: Relevance of integrated MRV systems to support evidence-based climate policy processes........................... 60
6.1: Urbanization status and key characteristics: Accra, Kumasi, and Tamale............................................................... 72
6.2: The National Spatial Development Framework.......................................................................................................... 74
Figures
ES.1: Integrating low-carbon urbanization considerations across climate and urban development policy
and implementation processes.............................................................................................................................. 08
ES.2: NDCs and LTSs can be important impetuses for prioritizing the low-carbon urban development
agenda..................................................................................................................................................................... 10
ES.3: Barriers for integrating low-carbon urbanization across climate and urban development policy
planning and implementation processes.............................................................................................................. 10
ES.4: Integrative solutions across the three pillars............................................................................................... 11
1.1: Average CO₂ emissions per capita and share of global CO₂ emissions generated in cities, by country
income group, 2015................................................................................................................................................ 18
1.2: Urban population 2020 to 2050...................................................................................................................... 19
1.3: Global population, by area of residence and size of urban settlement in 2018........................................... 20
1.4: Exposure to climate change-related hazards, by city size............................................................................ 21
2.1: The three key pillars for integration of urban climate action into national climate change strategies....................... 32
3.1: The scope of integration of climate and development strategies considering urban systems................. 34
3.2: Integrative solutions for policy frameworks.................................................................................................. 37
3.3: Integrative solutions for institutional structures........................................................................................... 42
4.1: Integrative solutions for finance mobilization................................................................................................ 45
5.1: Solutions for strengthening evidence-based urban climate policy processes............................................ 50
5.2: Criteria for selecting models: (a) Model abilities and (b) Usability and robustness................................... 54
5.3: High-level decision tree for model selection based on intended purpose and priorities of the diagnostic 55
5.4: MRV-related elements for planning and tracking climate action................................................................. 59
5.5: Integrative solutions for MRV systems and processes.................................................................................. 61
03
Tables
5.1: Main urban diagnostic parameters to assess implications of low-carbon growth interventions in
urban areas.............................................................................................................................................................. 50
6.1: Readiness Diagnostic Framework Questions.................................................................................................................. 66
6.2: Climate change mainstreaming in Ghana’s national development planning and budgeting processes............. 73
6.3: Recognition of low-carbon growth priorities in Ghana’s national urban agenda..................................................... 74
6.4: Urban climate action in Ghana’s national climate change strategies......................................................................... 75
6.5: Climate action planning in Accra...................................................................................................................................... 76
6.6: Decentralization and intergovernmental coordination and communication on climate action in Ghana.............. 77
6.7: Organizational structures and functions on climate change in Ghana........................................................................ 78
6.8: Stakeholder engagement and collaboration in Ghana’s climate planning................................................................ 78
6.9: Technical and financial capacity to support urban climate action in Ghana............................................................. 79
04
Acknowledgements
This report was prepared by a team led by Alexandrina Platonova-Oquab and Apoorva Shenvi, under the guidance of Joanna
Masic. The core team also consisted of Paolo Avner, Steffen Lohrey, David Mason, Mark Roberts, Megumi Sato and Sandra
Lucia Lopez Tovar. Additional written inputs into the report were provided by Abubakari Ahmed, Harikumar Gadde, Neeta
Hooda and Catherine Lynch at various key points. The technical analysis undertaken for the report was supported by ARUP and
Ricardo. The ARUP team was led by Ben Smith and Giacomo Magnani and the Ricardo team was led by Rose Bailey, Flavia
Carloni and Floriane de Boer.
The work was conducted under the general guidance of Jennifer Sara (Global Director, Climate Change Group), Bernice Van
Bronkhorst (Global Director, Urban, Disaster Risk Management, Resilience, and Land), Sameh Wahba (Regional Director, Europe
and Central Asia, Sustainable Development), Rahul Kitchlu (Practice Manager, Climate Change Operationalization and Impact)
and Genevieve Connors (Practice Manager, Latin America, Sustainable Development). The team greatly benefited from excellent
advice and guidance from the following peer reviewers at various points in the report preparation process: Syed Adeel Abbas,
Arturo Ardila Gomez, Ellen Hamilton, Abhas K. Jha, Augustin Maria, Craig Meisner, Veronique Morin, Nicholas Menzies, and Uri
Raich. The team is also grateful for inputs provided by Peter Ellis and Stephen Hammer at conceptualization-stage.
Preparation of the report also benefited greatly from the feedback received from the discussants and other participants of a
workshop organized by the World Bank’s Climate Smart Cities Community of Practice on March 31, 2022, and a workshop
hosted by the City Climate Finance Gap Fund workshop entitled “Mobilizing Climate Finance for Cities: Integrating Urban
Development Plans, National Determined Contributions, and Long-Term Climate Strategies” at Innovate4Climate on May 26,
2022. Discussants who have not already been acknowledged were Gyongshim An, Axel Baeumler, Jon Kher Kaw, Raghu
Kesavan, Lukas Loeschner, Xueman Wang (World Bank); Andy Deacon and Benjamin Jance (GCoM); Bernhard Barth (UN-
Habitat); and Inés Lockhart (C40).
Further, the team is grateful to Stephane Hallegatte, Gayatri Singh, Tiffany Minh Tran, and Chandan Deuskar for providing key insights to
the report.
Karen Schneider was the substantive editor; Joseph Michael Brunton was responsible for the design and typesetting of the report.
This work received generous financial support from the NDC Support Facility.
05
Abbreviations
AMA Accra Metropolitan Assembly Long-term Low Greenhouse Gas Emissions
LTS
Strategy
BAU Business-as-usual
LTV-2050 2050 Long-Term Vision for Nigeria
BRT Bus rapid transit
LUSP Land Use and Spatial Planning
BUR Biennial Update Report
°C Degree Celsius M&E Monitoring and evaluation
CAP Climate action plan MDB Multilateral Development Bank
CBT Climate budget tagging Ministry of Environment Science,

MESTI
Technology, and Innovation
CCFLA Cities Climate Finance Leadership Alliance
Metropolitan, Municipal and District
CDP Carbon Disclosure Project MMDA
Assembly
CCFLA Cities Climate Finance Leadership Alliance
MoF Ministry of Finance
CH₄ Methane
MRV Measurement, Reporting, and Verification
Climate Public Expenditures and
CPEIR
Institutional Review
MT Medium term
CO₂ Carbon dioxide
Medium-Term Development Policy
MTDPF
COP Conference of Parties Framework
CRGE Climate Resilient Green Economy NCCP National Climate Change Policy
European Bank for Reconstruction and NDC Nationally Determined Contribution

EBRD
Development
NDP National Development Plan
EPA Environment Protection Agency
National Development Planning
EV Electric vehicle NDPC
Commission
GACMO GHG Abatement Cost Model NLTDP Long-Term National Development Plan
Global Covenant of Mayors for Climate &
GCoM NSDF National Spatial Development Framework
Energy
GHG Greenhouse gas NUP National Urban Policy
Global Protocol for Community-scale Organization for Economic Co-operation

GPC OECD
Greenhouse Gas Inventories and Development
GTP Growth and Transformation Plan OSR Own-source revenue
HIC High-income country

Public Expenditure and Financial
PEFA
Accountability
IAMs Integrated Assessment Models
PFM Public financial management
IEA International Energy Agency
PPP Public-private partnership
IPCC Intergovernmental Panel on Climate Change
RDTR Detailed spatial plan
IUDF Integrated Urban Development Framework
SSA Sub-Saharan Africa
LIC Low-income country
UMIC Upper-middle income country
LMIC Lower-middle-income country
United Nations Framework Convention on
UNFCCC
LT Long term Climate Change
LT-LED Long-Term Low Emissions Development WRI World Resources Institute
06
Executive Summary
and Recommendations
Extensive systemic transformations of urban areas in rapidly The authors propose that the integration journey start with a
urbanizing developing countries can be a powerful vehicle country- and city-specific readiness diagnostic developed for
for advancing low-carbon urban growth that supports global this report—the Readiness Diagnostic Framework. This
decarbonization goals. Since most of the urban infrastructure Framework can help identify changes required in policy processes,
and footprint in rapidly urbanizing countries in Asia and Sub- institutions, finance mobilization efforts, and climate action planning
Saharan Africa (SSA) will be built in the next few decades, and tracking to inform decision makers in rapidly urbanizing
urban policy decisions made today will have long-lasting countries at both national and city levels about the actions needed
implications on the contribution of cities to future global to pursue integration of low-carbon urbanization priorities into
greenhouse gas (GHG) emissions. While the GHG emissions national climate change strategies, including NDCs and LTSs.
generated by cities in developing countries have been
relatively low compared to cities in high- and upper-middle-
income countries (HICs and UMICs), given the scale of urban Untapped climate mitigation
growth anticipated in these countries, pivoting away from high I opportunities in rapidly urbanizing
GHG emissions trajectories and pursuing low-carbon countries in Asia and Africa¹
urbanization pathways are essential to avoid locking in carbon-
intensive development in the long-term.
Rapid urbanization in countries in Asia and SSA will have
This report highlights the urgent need to improve the significant and long-lasting impacts on their cities’ carbon
integration of low-carbon urbanization priorities into the footprint and resilience to climate change. Currently, urban
Nationally Determined Contributions (NDCs) and Long-Term population growth in these regions is accompanied by sizeable
Low-GHG Emission Development Strategies (LTSs) of rapidly urban land area expansion, especially in small- and medium-
urbanizing countries and outlines the opportunities to sized cities. Continuation of such urban spatial growth trends
leverage them as bridges between national decarbonization could significantly increase GHG emissions. Rapidly growing
and urban development goals and priorities. These key cities in these regions risk locking in more resource- and GHG
instruments, which outline countries’ long-term visions for low- emissions-intensive development and consumption patterns in
GHG emissions, climate-resilient development (LTS) and the long-term, particularly in the housing and transportation
medium-term climate priorities (NDC), often overlook the sectors. Further, high rates of poverty and informality and limited
urgency of decarbonizing urban systems. Integrating climate access to basic services, coupled with low emergency
mitigation considerations for urban systems that are synergistic preparedness, make these cities highly vulnerable to climate
with countries’ urban development goals in these strategies change-related shocks (adapted from Mukim and Roberts 2023).
could elevate this agenda and accelerate its implementation.
As countries strive to embed priorities and targets from national Rapidly urbanizing LICs and LMICs have an unprecedented
change climate strategies (especially NDCs and LTSs) into their opportunity to avoid conventional urban development
development planning efforts, incorporating low-carbon urban patterns. According to the Intergovernmental Panel on
development considerations into NDCs and LTSs can signal Climate Change (IPCC), rapidly growing small- and medium-
strong political commitment to this agenda, foster coordination sized cities, whose urban form is still evolving and where most
with urban governments and other local stakeholders, facilitate of the urban infrastructure is yet to be built, hold some of the
access to finance, and enable effective implementation of highest climate mitigation potential (Seto et al. 2014). Given the
multi-sectoral urban policies and actions. Considering the pace of urban growth in these cities, early and urgent climate
impact of urbanization and urban mitigation measures on action is crucial. Pursuing low-carbon urban growth can also
national GHG emissions can also help leverage the potential of contribute to addressing immediate local priorities such as
such measures and their spillover effects to achieve national reducing traffic congestion, curbing air pollution, enhancing
(and global) climate goals and progressively raise ambition. public health, and improving overall productivity of urban
areas. Moreover, reducing energy demand and promoting
To bolster the integration of low-carbon urbanization resource efficiency can enhance the resilience of cities to
priorities into NDCs and LTSs, this report identifies climate hazards such as extreme heat and drought.
numerous integrative solutions across countries’ policy
frameworks and institutional structures; finance With urbanization pressures magnifying the urgency to
mobilization efforts; evidence-based policy processes; simultaneously achieve multiple development priorities, cities
and measurement, reporting, and verification (MRV) in LICs and LMICs face numerous constraints in moderating
systems. The integration process should account for the their long-term GHG emissions trajectories. Underinvestment in
contextual differences and characteristics across countries infrastructure and services, high levels of informality, low levels of
and their urban areas emerging from varied policy access to electricity, water, and sanitation, and weak or poorly
frameworks, institutional structures, and financial and
enforced urban spatial planning regulations significantly constrain
technical capacities. It is also crucial to recognize the
pressures of rapid urbanization, especially in low-income the livability of cities in LICs and LMICs and limit their potential to
countries and lower-middle-income countries (LICs and contribute to inclusive economic growth. Climate action in such
LMICs) and associated challenges such as infrastructure contexts is hindered by financing gaps, institutional and technical
deficits and high levels of urban informality. The proposed capacity constraints, and limited knowledge of, and access to,
solutions address several key barriers to integration arising low-carbon solutions. Furthermore, over half the urban population
from context-specific challenges that limit inclusion of low- in Asia and SSA is either already living or projected to live in
carbon urbanization considerations into NDCs and LTSs smaller cities and towns, which typically have the most acute
and hinder their effective implementation. institutional, technical, and financial capacity gaps.
07 ¹ This report focuses on LICs and LMICs in Sub-Saharan Africa and Asia.
Executive Summary and Recommendations
Low-carbon urbanization in LICs and LMICs should advance Given the complex and multi-sectoral nature of urban
both urban development and climate-related priorities. In the systems, realizing climate and urban development
near-term, countries and cities should prioritize opportunities to objectives simultaneously requires effective coordination of
pursue investments that meet their immediate development efforts between national and subnational levels of
needs yet result in a lower carbon footprint without governments and across sectors. Multiple public, private, and
compromising affordability or access (e.g., public housing non-state entities and actors (e.g., city governments, public
incorporating passive design techniques to reduce energy use, transit agencies, water utilities, power distribution companies,
improving waste collection and segregation to facilitate private developers, equipment manufacturers, local
recycling) and over time invest in more ambitious actions and stakeholders) are involved in planning and implementing
expensive low-carbon infrastructure (e.g., net-zero buildings, urban climate action, with each playing a unique role.
gas-to-energy systems in landfills). This can be achieved by Additionally, many urban mitigation actions go beyond cities’
simultaneously developing and strengthening policy jurisdiction and are linked to national climate priorities and the
frameworks that lay the foundation for more ambitious climate- country’s long-term decarbonization vision (e.g., deployment of
related policies in the medium-to-long term (e.g., spatial electric vehicles [EV]). Undertaking such actions requires
planning frameworks, urban design regulations, building codes). coordination between entities at various levels of government
(e.g., ministry of environment, ministry of planning, state and
Vertical and horizontal integration across metropolitan-level entities, city departments in charge of
climate and urban development policy capital investment planning) to mobilize institutional, technical,
II agendas is crucial to enable the low-carbon and financial resources.
transition in urban areas
Integration of climate and urban development policy
agendas can be facilitated by policy frameworks, institutional
Avoiding long-term carbon lock-in and achieving deep structures, and financing and tracking mechanisms that are
decarbonization in urban areas requires system-wide integrated vertically and horizontally. Vertical integration
transitions across key GHG emissions drivers such as involves aligning and coordinating strategies and policy
transportation, buildings, waste, and land use. Urban areas reforms and their implementation across different government
are complex systems with multiple interdependent sectors and levels (Figure ES.1). For example, city-level climate action plans
infrastructure that constitute their built environment and should be aligned with NDCs and LTSs. Vertical integration
contribute to service provision. As a result, realizing and leverages the potential of each level through collective efforts
implementing urban mitigation action at the pace and and promotes top-down and bottom-up information exchange.
magnitude needed to meet global net-zero emissions goals will Horizontal integration involves coordinating efforts between
require coordinated efforts and integration of sectors, core government entities (e.g., ministries or departments of
strategies, and innovations. Moreover, complementing sectoral planning or finance), sectoral entities (e.g., urban development
climate mitigation measures with cross-sectoral or system-wide and housing, transportation, energy, water, environment), and
efforts to advance actions that have cascading effects across external stakeholders (e.g., academia, business and industry,
key emissive sectors (e.g., transportation, energy, housing, land private investors, non-profit organizations, citizen groups)
use) can help achieve deep GHG emissions reduction (Lwasa (Adapted from C40 2020).
et al. 2022).
Figure ES.1: Integrating low-carbon urbanization considerations across climate and urban development policy and
implementation processes
Levels :
Horizontal National
Coordination
Regional
Vertical
Coordination Local
Climate
LTS, NDC, Urban Climate Action Plans
Strategies:
Sectors: Urban Development & Housing, Transport, Energy, Water, Environment, etc.
Source: Adapted from UN ESCAP 2020.
08
Cities and other subnational actors can bring valuable

NDCs and LTSs reflecting the low-carbon insights to the national decarbonization vision by
urbanization agenda can provide an impetus playing an active role in the co-creation of LTSs.
III to broader integration between urbanization Subnational entities and local stakeholders can offer
and decarbonization goals insights on slow-onset impacts of urbanization on GHG
emissions (e.g., evolving urban forms and land use, rate
National climate change strategies currently lack robust
of construction of new building stock, travel demand
consideration of challenges and opportunities of low-
patterns). Such inputs can help prioritize interventions
carbon urbanization. The share of NDCs with urban content
and policy reforms that have substantial long-term
submitted to the United Nations Framework on Climate benefits, prevent costly lock-in, and have positive
Change (UNFCCC) by June 2022 increased marginally spillover effects beyond urban areas. Co-creation of LTSs
compared to NDCs submitted in 2017. The nature of this can enable better articulation of needs for policy reforms
content ranges from a high-level description of climate and resource mobilization to facilitate long-term systems,
vulnerability and GHG emissions from urban areas to specific technology, and behavior shifts in urban areas.
actions and targets dedicated to urban sub-sectors. Further, Additionally, systematic involvement of subnational
most NDCs with urban content focus on mitigation responses actors in LTS processes can promote strong local
without discussing mitigation-related risks of urban growth, ownership and buy-in and enable a more just transition,
making it difficult to track progress and evaluate the impact of especially for urban population groups that are likely to
these responses (UN Habitat 2022b). The integration of be most affected by LTS implementation.
urban climate action into existing LTSs remains equally
Improved harmonization of NDCs and LTSs
limited. As of July 2023, all 66 LTSs submitted to UNFCCC²
facilitates integration of low-carbon urban
included mitigation responses in key urban sub-sectors such
development considerations into national climate
as buildings, energy supply, transportation, and waste. All
change strategies. Coordinated development of a
LTSs highlight the importance of subnational governments,
including cities, in achieving their long-term goals, but largely country’s LTS and NDC can leverage the many
don’t recognize the significant risk of carbon lock-in or the interdependencies in policy reforms and mitigation
mitigation potential of urban areas, settlements, and the responses across different planning horizons, create a
housing sector, only identifying these as adaptation priorities reciprocal relationship, and increase consensus
(UNFCCC 2022). around policy priorities. Longer-term policy signals
emerging from the LTS can guide short-to-medium-
NDCs and LTSs that effectively integrate the low-carbon
term actions, which can be pursued through NDCs
urbanization agenda can be important vehicles for
and their subsequent updates. Such coordination
advancing broader integration efforts. This report shows
helps prioritize concrete climate-informed policies and
that NDCs and LTSs can act as bridges between national measures that are expected to lead to long-term
decarbonization goals and urban development priorities, system-wide effects in urban areas (e.g., integrated
underscoring the integrated approach needed for achieving urban planning). It also guides sectoral policy reforms
the low-carbon urban transition. It outlines five main and investments that can contribute to decarbonizing
benefits of such integration (Figure ES.2): urban sub-sectors (e.g., adopting energy performance
standards and increasing their stringency over time).
Collaboration across government levels based on clearly Mainstreaming priorities and targets of NDCs and LTSs
defined roles and mandates for urban areas to deliver that reflect the low-carbon urban development agenda
NDC priorities can facilitate NDC implementation and into countries’ national development planning can
enhance access to finance. Pursuing alignment of urban strengthen implementation of urban climate action.
climate action with national climate priorities can increase With several countries making efforts to integrate their
the contribution of urban areas to achieving national national climate goals into their development planning
climate goals and enable them to access domestic public processes and pursue climate change mainstreaming,
and private financing for climate projects. Further, NDCs including robust low-carbon urbanization considerations
reflecting robust and concrete mitigation measures at city in NDCs and LTSs can provide significant momentum for
level that are aligned with both national climate goals and integrating this agenda into economy-wide and sectoral
local development needs can send a strong signal to development plans and cascade it down to subnational
investors and development partners and help mobilize level, facilitating its implementation.
external resources.
LTSs can provide key insights about feasible early How this report supports development
and implementation of climate action
actions and longer-term enabling conditions that can IV reflecting the priorities of the low-carbon
help avoid lock-in of GHG emissions-intensive urbanization agenda
development in urban areas. Considering impacts of
urbanization in LTS design can facilitate (i) the
formulation of low-carbon urban development pathways To support development and implementation of climate
consistent with relevant sectoral decarbonization policies and strategies that integrate low-carbon urban
strategies and (ii) identification of city-level mitigation development considerations, this report discusses three
actions that can feed into sectoral decarbonization main pillars of integration: (i) integrated policy frameworks
strategies and implementation plans and contribute to and institutional structures, (ii) strengthened finance
LTS targets. In some developing countries, a robust mobilization, and (iii) evidence-based policy processes and
long-term net-zero strategy for the capital city or a integrated MRV systems. These pillars represent the points at
group of major cities can deliver a substantial share of which integration would typically be required—from both
GHG emissions reduction and establish models for content and process perspectives—to achieve more cohesive
replication in other cities. In countries that don’t have an policy and institutional frameworks, reduce financing gaps for
LTS, developing low-carbon urbanization pathways can climate actions, and enable design of robust evidence-based
trigger and inform LTS development. climate policy and infrastructure solutions.
² This number includes three LTSs from countries in South Asia (India, Nepal, and Sri Lanka) and five in Sub-Saharan Africa (Benin, Ethiopia, The Gambia,
South Africa, and Zimbabwe). Nigeria has published a long-term development vision that will inform the development of its LTS.
09
Figure ES.2: NDCs and LTSs can be important impetuses for prioritizing the low-carbon urban development agenda
NDCs and LTSs that effectively integrate the low-carbon urbanization agenda can be important
impetuses for prioritizing broader integration efforts
1 2 3 4 5
Delivering climate Prioritizing early Enhancing climate Mainstreaming

Decarbonizing
targets in urban actions & long-term strategies with urban climate
urban development
areas response urban contributions action
Collaboration across LTS can provide key Active role of cities Improved Mainstreaming NDC
various government insights to help and other subnational harmonization of and LTS goals that
levels based on identify affordable actors in co-creating NDCs and LTSs can reflect the low-
clearly defined roles early actions and a country's LTS strengthen carbon urban
and mandates for longer-term ensures that urban- integration of low- development agenda
urban areas in enabling conditions specific insights are carbon urban into development
delivering NDC to help avoid integrated into the development planning can
priorities can locking in urban economy- wide considerations into strengthen
facilitate areas onto a carbon- vision for national climate implementation of
implementation and intensive decarbonized strategies. urban climate action.
access to finance. development path. development.
Figure ES.3: Barriers for integrating low-carbon urbanization across climate and urban development planning and
implementation processes
Lack of e, resources, a
expertis
technic
gra cy
tion
Lac tur ilit
str ons
inte f poli
res
knowle
k o es, ies
al capa
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f cl rol
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La w-c ls at
ear es,
i
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lo oa
Lac
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dge,
city
g
of rbo ity
ins and
aw n d lev
titu
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en el
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nd
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La
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nal
f n en
po ordin vert
at t
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io
pro ion i l
na
ce n cl
l
sse im ted
s ate
or limi ity
Lack ak ac
o
mains f climate c We ial cap
n c
policy treaming a hange fina
makin cross
g
Policy frameworks Strengthened
and institutional finance
Lack of authority and structures mobilization
mandates at the city level
al
nation
ints of ies W
Constraies and polic tech eak or lim
strateg nical
of
on ing Evidence-based policy capa ited
ratiplann city
te g t processes and integrated
t
al in en en MRV systems
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10
These actions should be supported by transparent The extent to which a national government can facilitate
monitoring and evaluation of the achieved outcomes across integration across different levels of government and actors, either
the climate and urban development policy agendas. In many simply through information sharing (e.g., without formal structures)
developing countries, the policy frameworks, institutional or through decentralizing mandates and responsibilities (e.g.,
structures, financing, and progress tracking mechanisms that formal legislative integration, devolution, decentralization) will differ
are integrated vertically (across different levels of based on countries’ governance contexts.
government) and horizontally (across relevant sectors) are
either not in place or in nascent stages. This report discusses Limitations in the structure and functioning of urban policy
approaches for advancing the integration process across processes and/or climate policy processes relevant for urban
each pillar, building on a detailed analysis of gaps and climate action can impede the achievement of integrated policy
barriers (summarized in Figure ES.3), opportunities, and frameworks. Poor vertical integration of urban development
integrative solutions. Other areas that are not discussed in planning, constraints of national strategies and policies that may
detail in this report but that provide important enabling hinder advancement of the urban climate agenda, and/or lack of
solutions for integration may include communication and requisite authority and mandates at city level are the main urban
engagement approaches, capacity building, legal frameworks policy process barriers that impede integration. Countries facing
and tools, and implementation modalities. these barriers would typically have a weak foundation for
integration of urban and national climate agendas. The typical
The Readiness Diagnostic Framework proposed in this limitations in climate policy processes that hinder integration
report recognizes countries’ varied urbanization contexts include (i) absent or weak climate change mainstreaming across
and levels of readiness for integration of low-carbon policymaking, (ii) limited vertical coordination of climate policy
urbanization considerations and can help urban and processes (misalignment between climate action at different
national decision makers tailor integrative solutions to their government levels), and (iii) lack of awareness of national low-
specific circumstances. Examples of integration between carbon development goals at city level.
local and national strategies analyzed in the report show that
integration is highly context-driven, as it depends on a Integration calls for a clear allocation of responsibilities to
combination of policies, administrative structures, distribution specific administrative functions within government institutions
of mandates, and decision-making practices that differ across for implementing climate strategies. To ensure that
countries. In addition, country and city contexts are governments perform these functions efficiently and that the
characterized by levels of readiness based on their current personnel implementing them are empowered to fulfill climate-
state of policy alignment, institutional capacities, and efforts related responsibilities, governments should establish or revamp
needed to change the status quo that will determine institutional structures. There are no optimal organizational
achievable near- and longer-term milestones for the structures that are conducive to integrated urban climate action
integration process. The report discusses several country and and establishing entirely new (formal) structures is often
city examples to illustrate these aspects and includes a challenging or unrealistic. A feasible approach could be to embed
detailed case study of Ghana’s readiness for urban climate climate change-specific functions within existing institutional
action integration. structures while proactively promoting a shared understanding of
objectives and available resources.
Main integration pillars and current gaps Strengthening coordination and fostering collaboration
V and barriers to their achievement between institutions can help overcome resource and
capacity gaps, especially at city level. Lack of formal,
permanent, and predictable structures and functions hinders
coordination between government entities, potentially impeding
allocation of institutional and financial resources and technical
Pillar 1: Integrated policy frameworks expertise to support climate-related functions at city level. In
and institutional structures addition to improving structures and coordination, it is important
to create mechanisms that facilitate collaboration between
personnel carrying out inter-linked functions or working in areas
with overlapping mandates across government levels.
An integrated policy framework facilitates alignment of
objectives between two or more interlinked policy agendas and
coordinated development, implementation, and monitoring and
evaluation of actions across these agendas. Such coordination Pillar 2: Strengthened finance mobilization
is pursued across national and subnational levels³ (vertical
integration) and relevant entities functioning within each level
(horizontal integration) and pertains to the development and
enhancement of strategies and policies that advance the climate Cities often face significant challenges in accessing climate
and urban development agenda—translating them into laws and finance because of capacity constraints. Cities in LICs and
regulations, establishing institutional structures, and allocating LMICs are often constrained in mobilizing financing for climate-
financial and other resources to support implementation. related investments from their own-source revenues (OSR).
They are also unable to raise capital on financial markets
Effective cooperation between different government levels in because of factors such as a low degree of financial autonomy,
setting up policy processes and institutional structures is limited creditworthiness, and lack of a borrowing track record.
crucial for strengthening the link between national and urban Insufficient financial expertise and technical skills to identify,
climate planning. Depending on a country’s climate governance develop, and effectively implement climate projects are other
important barriers to finance mobilization (including from
structures and the level of advancement of city-level climate
international climate finance sources). In small and medium
strategies, integration can combine elements of locally led cities, this gap is often compounded by numerous capacity
(‘bottom-up’) and nationally led (‘top-down’) approaches. This constraints in dispensing core urban development-related
means that city initiatives actively contribute to and influence functions. In addition to these limitations, lack of coordination
national climate action, while national-level policy frameworks with the national government on urban climate action coupled
and institutions cascade down national climate objectives to city with competing urgent urban service provision needs can limit
level and empower local actors. regular and consistent funding for climate-related projects.
³ There may be additional scales, such as ‘regional,’ that are applicable in different contexts. These might represent a separate scale in certain contexts
or be considered part of ‘subnational’ in others. For simplicity here, only national and subnational scales are identified.
11
Integration of urban climate action into national climate change With urbanization playing a prominent role in the low-carbon
strategies can enable city governments to gain sustained transition in LICs and LMICs, there is an urgent need to
support from their national government for undertaking climate improve their data and diagnostic capabilities at both city
action. A recent assessment of urban climate finance flows by the and national levels. Given the complex interaction between
Cities Climate Finance Leadership Alliance (CCFLA) (2021) different sectors and actors in urban areas along with diverging
highlights the vastly insufficient amounts of urban climate finance policy and investment priorities, decision makers at both
invested in developing countries, including South Asia and SSA. national and city levels need to strengthen their understanding
This analysis also determined that national governments financing of low-carbon urban development pathways and the levers to
domestic projects were the largest finance providers overall, achieve them. In addition, high-quality data and analytics can
playing a crucial role in supporting climate action in urban areas. enable city governments to assess the impacts of city-level
Integration of low-carbon urban considerations in national climate climate interventions and effectively communicate their costs
change strategies such as NDCs and LTSs can demonstrate and benefits to national governments to facilitate their
countries’ long-term commitment to this agenda, ensuring policy integration into national climate change strategies such as
predictability and reliable financial support. Explicit inclusion of NDCs and LTSs.
urban climate action in funding needs assessments, investment
plans, and subsequent finance mobilization strategies in NDCs Limitations of urban diagnostic tools, limited capacities to
can facilitate the allocation of funding resources at city level to use them, and low data availability are key gaps in
support actions that will deliver the greatest benefits. Similarly, undertaking evidence-based policy processes in LICs and
LTS processes can help embed both near- and long-term climate LMICs. While many diagnostic tools are available in developed
investment needs at city level into countries’ low-carbon transition countries, there is a significant lack of models that have been
priorities and translate them into specific implementation plans calibrated to cities in Africa, Asia, or other developing regions.
and financing models. Models often provide limited insights on potential impacts of
climate mitigation measures on poverty and equity, or trade-
Integration efforts are critical for cities in LICs and LMICs to offs and synergies with other development priorities. They also
receive adequate intergovernmental transfers for climate have an uneven capacity to quantify co-benefits of low-carbon
action. The volume and flow of intergovernmental transfers interventions. Further, entities at different government levels
can significantly impact the scope of climate-related urban often have limited capacity and resources to identify and apply
interventions in these cities. Regular and consistent funding appropriate diagnostic tools to address policy questions,
from the national budget, underpinned by vertically especially for larger, system-wide interventions and complex
integrated planning and policy processes, is a key enabler for projects (e.g., those that require more modelling expertise and
cities to implement climate-related projects and attract external support). Cities and national governments also face
international funding and private finance. In countries where significant data gaps arising from challenges in compiling GHG
climate change is mainstreamed into national development inventories within city boundaries and inconsistent approaches
planning, integration of the low-carbon urbanization agenda for tracking climate actions and climate finance flows. These
can enhance targeted finance mobilization and facilitate are compounded by the lack of incentives for data collection,
national funding allocations to cities for climate action, weak institutional structures, and limited accountability at
bringing dependability to intergovernmental transfers. various levels of government.
To enhance evidence-based policy processes, a dedicated

user Guide for selecting urban diagnostic tools and models
Pillar 3: Evidence-based policy processes was developed for this report. This guide can direct users and
and integrated MRV systems decision makers toward relevant groups or ‘families’ of urban
tools and models to address their policy objectives, depending
on the priorities of the diagnostic being undertaken and
available resources. It also outlines a set of criteria, such as
Robust data, diagnostics, and tracking approaches are crucial sector coverage, technical abilities, and usability and
elements for integrating the low-carbon urbanization agenda robustness of models in addressing specific policy-relevant
across climate and urban development policy planning and questions in the context of rapidly urbanizing countries, that
implementation processes. Consistent data and diagnostics can be used to arrive at a specific model choice.
approaches can support vertical integration between city-level
climate action and national climate and urban development
strategies. In addition, they are critical for facilitating horizontally Integrative solutions and diagnostic
integrated planning and implementation of mitigation efforts VI framework
across different sectors in cities. Urban diagnostics can provide
critical insights to policymakers on the medium- and long-term
impacts of urbanization trends and mitigation policies on GHG This report proposes a set of nine integrative solutions to
emissions along with their socio-economic implications. Where support policymakers in developing and implementing
available, such information can improve the evidence base national climate change strategies that integrate the low-
underpinning urban policy decisions and support the scaling up carbon urbanization agenda (Figure ES.4). The report
of ambition of national- and city-level climate interventions. discusses how these solutions can help overcome the
common integration-related gaps and barriers identified
Integrated MRV systems across policy processes and under each of the three pillars of integration, namely
government levels enable consistent tracking of GHG integrated policy frameworks and institutional structures
emissions, outcomes of urban mitigation actions, and climate (Pillar 1), strengthened finance mobilization (Pillar 2), and
finance flows to support decision making. Integrated or evidence-based policy processes and integrated MRV
aligned MRV systems ensure the use of consistent systems (Pillar 3). The proposed solutions are cross-cutting
methodologies, data, assumptions, and parameters across and applicable across all three pillars.
different levels of government and entities and are supported
by clear institutional and incentive structures. Reliable and Effective integration of low-carbon urbanization considerations
timely collection, consolidation, and analysis of data generated is achieved when national policy frameworks and institutions
by such systems can enhance planning and policy design and facilitate vertical and horizontal coordination across all three
enable a robust assessment of the country’s progress toward its pillars and when cities are well-equipped and receive support
GHG emissions reduction goals. for contributing to national climate goals.
12
This is enabled when: Appropriate institutional frameworks and governance

structures facilitate effective coordination between national-
Climate change is mainstreamed in national development and city-level entities on such aspects as climate planning
planning and budgeting processes to achieve the goals and and policy development, budgeting, implementation, and
targets of the country’s national climate change strategies tracking of urban climate action and its impacts through
(NDCs and LTSs). aligned or integrated MRV systems.
The country’s NDCs and LTSs and associated financing plans Climate policy processes across government levels are
reflect low-carbon urban development priorities, including the underpinned by evidence-based decision making that
main drivers of the carbon footprint of urban areas and allows for periodic revisions of strategies and gradual
related GHG emissions reduction measures. scaling up of the ambition of NDCs and LTSs.
Cities’ mandates for climate action are well-established Cities are experienced in developing and implementing
and supported by clear policy frameworks that cascade climate change plans that are aligned with national climate
down national climate mitigation targets to various change strategies and urban development priorities.
government levels.
Cities have robust technical and financial capacities and a well-
The national government is supporting cities in accessing developed knowledge base on climate mitigation that is
domestic and international sources of climate finance regularly updated and communicated to the national level to
through dedicated programs and financing mechanisms. support coordinated climate policy processes.
Figure ES.4: Integrative solutions across the three pillars
Integrated policy Evidence-based policy

frameworks and Strengthened finance processes and integrated
institutional structures mobilization MRV systems
1 Mainstream climate change in national development planning and budgeting processes
2 Integrate low-carbon growth considerations in the national urban agenda
3 Explicitly consider urban climate action in national climate change strategies
4 Empower city governments and strengthen intergovernmental coordination
5 Enhance communication between national- and city-level on climate action
6 Establish organizational structures & functions within each government level
7 Promote stakeholder engagement
8 Promote collaboration and sharing of knowledge, tools and resources
9 Enhance technical and financial capacity
13
Recommendations
Given the sizeable potential in LICs and LMICs to transition
to decarbonized, climate-resilient development pathways by
pursuing low-carbon urbanization, integrating urban
considerations into their national climate change strategies
and policies can provide a crucial impetus for broader
integration efforts. This report identifies 10 key
recommendations to support policymakers and practitioners
in their efforts to develop and implement NDCs, LTSs, and
other national climate change strategies that effectively
integrate low-carbon urbanization priorities:
Climate change mainstreaming in national

development planning and budgeting
1 processes is crucial for achieving countries’
climate change commitments while also
advancing their development priorities.
Economy-wide development planning that reflects low-carbon

urbanization considerations can help overcome sectoral and
institutional silos, avoid policy conflicts, and reduce potential
trade-offs between the urban development and
decarbonization agendas. Cascading down climate-informed
development plans to subnational levels can be an effective
vehicle for delivering vertically and horizontally integrated
climate action, especially when such plans explicitly consider
the financing needs and sources for climate action. Associated
climate-informed budgeting processes are equally important to
ensure that climate action in urban areas is supported by
regular and consistent funding flows (e.g., intergovernmental
fiscal transfers, earmarking funding for climate action through
conditional transfers to the city level). Mainstreaming of climate
action should be reinforced by integrating climate-related
performance indicators into national and subnational systems
that track progress on development priorities.
Integration of low-carbon urbanization

considerations in the national urban agenda can
2 harness mitigation potential in urban areas
through sectoral and spatial planning processes.
First, this integrative solution can strengthen horizontal

coordination between climate and urban development policy
agendas. It helps ensure that national urban plans consider the
GHG emissions impacts of urbanization trends and translate the
country’s vision for long-term low-carbon growth into actionable
milestones for urban areas. Second, it can augment vertical
coordination by cascading down national climate mitigation
priorities to city level and providing cities with a foundation to
build their climate action plans. Such integration should be
supported by a guiding framework for resource allocation to
cities to undertake monitorable climate mitigation actions.
Explicitly including climate mitigation priorities

and targets for urban areas in national climate
3 change strategies can enable their
implementation at city level.
NDCs or LTSs that integrate low-carbon urbanization priorities

should be accompanied by implementation plans that (i)
translate priorities into concrete targets and implementable city-
level actions, (ii) assign clear roles and responsibilities to
subnational governments for their implementation, (iii) include
approaches to mobilize and channel climate finance to city level,
and (iv) create specific indicators and MRV processes to
measure and report on the progress and impact of actions. The
enabling environment for urban climate action can be further
strengthened by establishing legal frameworks and incentive Manila, Philippines © Andrey Khrobostov / Alamy Stock Photo
structures for their consistent enforcement.
14
Empowering city governments and

4 strengthening intergovernmental coordination
in overlapping policy areas helps ensure clarity
of mandates for urban climate action.
Effective climate governance can be achieved by (i) delegating

mandates for climate action to city governments for areas within
their administrative functions; (ii) coordinating planning and
implementation functions across government levels in sectors
and areas with overlapping mandates; and (iii) empowering
cities to mobilize domestic and international climate finance,
including by the targeted use of their OSR. Coordination can be
augmented across all government levels by undertaking robust
diagnostics of urbanization impacts on national GHG emissions
reduction efforts and promoting well-aligned or integrated MRV
approaches (e.g., using comparable reporting boundaries
across different sectors and jurisdictions, timelines, and
indicators to track progress and financial flows).
Enhancing communication on climate action

between national and city levels improves
5 information sharing and gradually addresses
integration barriers.
Enhanced communication on urban climate action across

government levels can be an initial step toward integration,
especially in cases where coordination mechanisms are not yet
in place. Consistent top-down communication ensures that city
governments are aware of national climate targets and their
implication for their jurisdictions, while bottom-up communication
provides critical insights on the mitigation efforts undertaken or
planned in cities and associated financial needs. Co-creation of
NDCs and LTSs with both national and subnational entities
engaged in the policy processes relevant to climate action in
urban areas can strengthen communication.
Clear organizational structures with well-defined

roles and responsibilities across government
6 levels ensure that climate-related functions are
adequately performed at each level.
Climate change-related functions are usually not clearly attributed

within and across different government levels in LICs and LMICs.
This can weaken inter-governmental coordination, limit knowledge
sharing and capacity building, and impede effective execution of
climate functions, especially in small and medium cities.
Organizational structures supporting climate-related functions with
formally defined roles, responsibilities, and accountability can be
an important enabler of integrated climate policy processes across
government levels. Allocating formal roles on climate change may
require establishing new institutional bodies or expanding
mandates of existing institutions and continual capacity building.
Undertaking stakeholder engagement ensures

that climate action in urban areas is consistent
7 with national priorities and locally appropriate
and has buy-in of local communities.
Multi-level stakeholder engagement is an integral part of

coordinated policy processes for enabling integration. It helps
leverage cross-sectoral efficiencies and attain strategic
alignment between city-level planning and national climate
change targets. To promote stakeholder engagement, national
governments can facilitate participation of subnational
stakeholders in the development of NDCs or LTSs by setting up
engagement platforms, organizing technical workshops, or
establishing working committees dedicated to cross-cutting
Lagos, Nigeria © peeterv / Getty issues of low-carbon urbanization.
15
Collaboration and sharing of knowledge,

tools, and resources across government
8 levels and with other stakeholders can
support effective implementation of
integrated climate policy processes.
Tools and resources to mainstream climate change in policy

processes (e.g., through modelling of low-carbon urbanization
scenarios, identification and assessment of mitigation
interventions) and knowledge and technical capacity are key
components that can be coordinated and shared across
government levels (e.g., through knowledge-sharing platforms).
Effective collaboration on data, diagnostic and reporting tools, and
sharing expertise on climate-related interventions can support
integration by promoting efficient knowledge exchange and
streamline planning and reporting efforts.
There is an urgent need to enhance cities’

9 technical capacity and financial expertise for
undertaking climate action.
Technical capacity to design and implement climate policies and

measures targeting urban areas is the backbone of integration.
Adoption of integrative solutions should be accompanied by a
sustained effort and allocation of dedicated resources to
improve climate-related technical capacities across all levels of
government. For instance, clear allocation of climate-related
roles in city governments can empower designated entities to
progressively improve their capacity to undertake climate-
related functions in-house, including finance mobilization. Cities
can strengthen their capacity to deploy in-depth GHG emissions
diagnostics, ensuring more comprehensive coverage of key
GHG emissions sources and enhanced understanding of wide-
ranging impacts of urban climate mitigation measures. Similarly,
cities should augment their financial expertise to develop
innovative financing instruments and project modalities (e.g.,
public private partnerships [PPPs]) to mobilize financing for
climate action from private sources and international sources of
climate finance.
This report identifies numerous areas that

require urgent support from the international
10 community to facilitate integration of the
low-carbon urbanization agenda into
countries’ climate policies and strategies:
Support for integration efforts should be prioritized in

rapidly urbanizing LICs and LMICs where capacity gaps
are most acute. The Readiness Diagnostic Framework
proposed in this report can help identify and tailor
appropriate integrative solutions to specific country contexts.
Promoting knowledge sharing and capacity strengthening

across countries, cities, and stakeholders can support
policymakers in pursuing integration across the main
pillars. Such efforts could also consolidate resources on
other aspects of integration such as communication and
engagement, capacity building, legal frameworks and tools,
and implementation modalities.
Tailoring urban diagnostic tools and models to policy

contexts of rapidly urbanizing countries and cities can
support the integration of climate and urban development
policy agendas. Concerted efforts from a broader set of
stakeholders, supported by international urban initiatives,
development partners, and academia is required to continue
building the knowledge base on impacts of urban mitigation
action (e.g., improving understanding of the impacts of
spatial layout of urban infrastructure on GHG emissions) and
exploring opportunities of emerging technologies to reduce
data gaps. Luanda, Angola © efired / iStock
16
Chapter 1: Pursuing low-carbon urban growth in developing countries is critical for the climate transition
Impact of urbanization trends on Urbanization in these regions will be characterized by a

1.1 GHG emissions in rapidly urbanizing substantial increase in the number of cities in addition to
developing countries expansion of existing ones. Between 2020 and 2070, the
number of cities in LICs is projected to grow far more (76
In 2020, urban areas were home to 56 percent of the global percent) than in UMICs (6 percent). Geographically, this
population but contributed approximately 70 percent of global increase will be concentrated in Central and Southern Asia and
GHG emissions (Lwasa et al. 2022, UN Habitat 2022a). The SSA, which are projected to add 2,500 and 1,800 cities,
global urban population is expected to grow considerably to 68 respectively, by 2070 (UN Habitat 2022a). This anticipated
percent of the total population by 2050, with negative urban growth could significantly increase global GHG
consequences for the climate. Cities in HICs and UMICs have emissions, driven by an expanding urban footprint, construction
been major drivers of global urban GHG emissions, while the and use of new infrastructure and building stock, growth in
contribution to emissions from cities in LICs has been negligible. economic activity, and changes in incomes and lifestyles
For example, in 2015, cities from developed countries together (adapted from Lwasa et al. 2022). Furthermore, despite low per
accounted for almost 86 percent of all global urban carbon capita urban GHG emissions in LICs, the continuous
dioxide (CO₂) emissions, cities in LMICs contributed almost 13 agglomeration of economic activity and population in their
percent, and cities in LICs accounted for less than 0.2 percent⁴ urban areas coupled with rising incomes and associated
(Figure 1.1) (Mukim and Roberts 2023). changes in consumption patterns, may drive up the per capita
carbon-intensity of urban dwellers. Since most infrastructure in
Most future urban growth is expected to take place in the cities in rapidly urbanizing countries in these regions is yet to
developing regions of Africa and Asia. Africa is currently the least be built, urban policy decisions made today will have long-
urbanized region in the world but has the highest urban growth lasting implications on these cities’ contribution to future global
rate (3.4 percent per year). Consequently, Africa’s urban GHG emissions. Pursuing low-carbon urbanization pathways
population is expected to increase exponentially by mid-century, could create new green growth opportunities for these
from 587 million people in 2020 to almost 1.5 billion in 2050, countries and cities, enable them to avoid the CO₂ emissions
while Asia’s urban population is projected to increase from 2.4 trajectories historically followed by cities in HICs, and prevent
billion people to 3.5 billion during this period (Figure 1.2) (UN the lock-in of carbon-intensive development in the long-term
Habitat 2022a). (Mukim and Roberts 2023).
Figure 1.1: Average CO₂ emissions per capita and share of global CO₂ emissions generated in cities, by country
income group, 2015
a. Average CO₂ emissions per capita Tons per year per person
High-income
Upper-middle-income
Lower-middle-income
Low-income
b. Share of global total (%) CO₂ emissions generated in cities
High-income
Upper-middle-income
Lower-middle-income
Low-income
Source: Mukim and Roberts 2023. Residential and transportation All sources (restricted sample)
Note: For the residential and transportation sectors, the data cover 10,179 cities. For all sources of emissions, the data cover 3,148
cities. In panel a, each marker shows the unweighted average of long-cycle (fossil) CO₂ emissions per capita (measured in tons per
year per person) of cities by country income group. In panel b, each marker shows the share of global urban long-cycle (fossil) CO₂
emissions generated in cities classified by country income group.
⁴ It is important to note that Figure 1.1 includes only CO₂ emissions, thereby underestimating the overall level of GHG emissions generated in cities (e.g.,
methane emissions associated with solid waste management and wastewater treatment represent a significant share of GHG emissions in urban areas in
developing countries).
18
Figure 1.2: Urban population 2020 to 2050
Africa
Asia
2050
Europe
2040
2030
Latin America and
2020
the Carribean
North America
Oceania
0 500 1000 1500 2000 2500 3000 3500 4000
Source: UN Habitat 2022a Urban Population (million)
SSA is expected to experience some of the largest urban land

Rapid urbanization and its impact on expansion, with its urban area projected to almost double between
1.1.1 cities’ carbon footprint and resilience to 2020 and 2070 (UN Habitat 2022a). Further, cities with
climate change populations of less than 2 million people have experienced more
declines in urban population densities and higher rates of urban
Urban growth is usually associated with poverty reduction land expansion compared to larger cities (Lwasa et al. 2022).
and economic development. However, cities in SSA and Despite being home to a sizeable proportion of the overall urban
Asia⁵ face numerous challenges in reaping the benefits of population, small- and medium-sized cities in Africa and Asia are
rapid urbanization. Cities across both regions have often trending toward lower population densities, resulting in
failed to address pressures arising from a growing fragmented and spatially dispersed urban forms—or ‘urban sprawl.’
population on their infrastructure, basic services, land,
housing, and environment. Underinvestment in Land-use conversion resulting from urban expansion into
infrastructure and services, limited technical and financial forested areas is often permanent and difficult to reverse.
capacities, and weak or poorly enforced urban planning Construction of infrastructure on new urban land will lock in
frameworks are significantly affecting the livability of cities patterns of energy consumption that will persist for decades
and limiting their potential to contribute to inclusive growth (Lwasa et al. 2022), especially in countries with slower
(adapted from Ellis and Roberts 2016; Lall et al. 2017; decarbonization of power grids and transportation.⁶ Dispersed
Hommann and Lall 2019). These challenges are urban form is typically associated with higher per capita GHG
compounded by the fact that over half the urban population emissions arising primarily from energy use (both embodied⁷
is already living or projected to live in smaller cities and and operational) in buildings, service provision, and
towns, which typically have the most limited institutional, transportation. For example, in the urban transportation sector, a
technical, and financial capacities to address the urgent fragmented urban form results in longer travel distances and
needs of a rapidly growing population (Box 1.1) (Coalition for difficulty providing affordable mass transit options, a reduction in
Urban Transitions 2021). This section highlights the key the feasibility of non-motorized transportation modes such as
characteristics of rapid urbanization in these regions and bicycles, and an increase in private motor vehicle use. In SSA,
their implications for cities’ carbon footprint and resilience approximately three-quarters of the urban population already
to climate change. reside in the urban peripheries of the largest city of each
country. For instance, the average commute distance for Addis
Ababa and Nairobi is estimated at 9.6 km and 7.2 km,
Urban land expansion respectively, making it challenging to plan for efficient growth
through integrated urban and transportation planning (Coalition
Globally, on average, urban land areas are increasing at twice for Urban Transitions 2021). Further, urban expansion can lead to
the rate of urban population growth, often resulting in the a significant reduction in carbon sinks from loss of tree cover and
conversion and loss of agricultural land, forests, and other forests, destroying natural habitats and worsening vulnerability
vegetated areas and a reduction in carbon sinks (Lwasa et al. to hazards such as extreme heat and flooding. If current spatial
2022). The anticipated growth in the global urban population growth trends continue, urban population growth and urban land
and accompanying increase in urban land area will be area expansion in Africa and Asia, especially in small- and
especially high in LICs. medium-sized cities, could significantly increase GHG emissions.
⁵ This report focuses on LICs and LMICs and in Sub-Saharan Africa and Asia.
⁶ In some decarbonization scenarios, a dispersed urban form could eventually achieve a lower carbon footprint with electrification of transportation coupled with
decarbonization of electric grids in the longer term.
⁷ Embodied energy is the total energy required to produce a material or product.
19
Box 1.1: Emergence of small- and medium sized cities as the dominant urban settlement type
Cities and towns with fewer than 1 million people accounted for more than half (58 percent) of the global urban population
in 2018, according to IPCC (Lwasa et al. 2022). Settlements with fewer than 500,000 people accounted for almost half (48
percent) of the global urban population (Figure 1.3). In Asia, over half (54 percent) of the urban population lives in cities and
towns with populations of less than 1 million people. In Africa, by 2050, half the urban population is expected to live in cities
with less than 300,000 people (Coalition for Urban Transitions 2021). Small- and medium-sized cities are thus both the
dominant and fastest-growing type of urban settlements in Africa and Asia.
Figure 1.3: Global population, by area of residence and size of urban settlement in 2018
4000
529
3500 325
9.8%
3000 6.5%
926
Population (million)
2500
42.1%
415
2000
275
3410
1500
41.5%
1000
1750
500
0
Urban population (55)% Rural population (45%)
World Population
Source: Lwasa et al. 2022
Megacities of 10 Large cities of 5 to Medium-sized cities of Cities of 500,000

million or more (12.5%) 10 million (7.7%) 1 to 5 million (21.9%) to 1 million (9.8%)
Cities of 300,000 Urban settlements All settlements with more than

to 500,000 (6.5%) with <300,000 (41.5%) 1 million inhabitants (42.18%)
Infrastructure deficits and informality Upgrading existing urban infrastructure and constructing new
infrastructure using conventional practices and technologies can
significantly increase CO₂ emissions, given the massive scale of
Urban households in LICs and LMICs have less access to needed investments (Lwasa et al. 2022)
urban services such as safe drinking water and proper
sanitation than households in cities in UMICs, with access High exposure to climate hazards
to services relatively better in larger cities than in small- and
medium-sized ones (Mukim and Roberts 2023). Rapidly Cities in LICs and LMICs have the highest overall exposure to six
growing cities in LICs and LMICs also have high levels of key climate change-related hazards than cities in HICs—floods,
informality, with informal settlements⁸ experiencing the heat stress, tropical cyclones, sea-level rise, water stress, and
most acute service deficits. Africa has the lowest level of wildfires (Figure 1.4). While floods pose the highest risk for medium
infrastructure provision, with only 54 percent of the urban and large cities, water stress, sea-level rise, and heat stress are
population having access to safe drinking water and only the key hazards affecting small and medium cities (adapted from
32 percent to sanitation (UN Habitat 2022a). Approximately Mukim and Roberts 2023). Studies also suggest that some of the
61 percent of Africa’s urban population lives in informal most rapid expansion in urban land areas is occurring in low-
settlements, and Africa also has the world’s highest share elevation coastal zones (Mogelgaard et al. 2018), which could
of informality in the economy, estimated at 76 percent potentially expose much of the urban population to climate
(Lwasa et al. 2022; Coalition for Urban Transitions 2021). To hazards. In addition, extreme weather events such as tropical
meet the needs of a burgeoning population and reduce cyclones that are caused by climate change and increasing in
service delivery gaps, rapidly growing cities in Africa and frequency and intensity have larger negative impacts on the
Asia need to substantially augment infrastructure in their economic activity of cities in these countries than in cities in
cities and make considerable investments in new higher-income countries. High rates of poverty and lower levels of
infrastructure in emerging ones. Additionally, expanding access to basic services, especially water, electricity, and
affordable formal housing will be crucial for tackling sanitation, coupled with low emergency preparedness, make
challenges related to urban informality and improving the these cities less resilient to climate change-related stresses and
quality of life of urban dwellers. shocks (adapted from Mukim and Roberts 2023).
⁸ According to UN Habitat, informal settlements are residential areas where 1) inhabitants have no security of tenure regarding the land or dwellings they
inhabit, with modalities ranging from squatting to informal rental housing, 2) the neighborhoods usually lack, or are cut off from, basic services and city
infrastructure, and 3) the housing may not comply with current planning and building regulations and is often situated in geographically and environmentally
hazardous areas (UN Habitat 2015).
20
Figure 1.4: Exposure to climate change-related hazards, by city size
Average weighted overall climate change-related hazard exposure, by city size and country income group
Climate hazard exposure score
Large cities
Medium cities
Small cities
High-income Upper-middle-income Low-and lower-middle-income
Note: The figure reports the mean projected climate hazard exposure scores for cities that belong to a given type. Small,
medium, and large cities are those that in 2015 had a population of less than 50,000–199,999; 200,000–1.4999 million; and
1.5 million or more, respectively.
Source: Mukim and Roberts 2023.
Pursuing low-carbon urban growth in Given the pace of urban growth in these cities, early and urgent
1.1.2 developing countries is critical for the climate action is crucial. The design and spatial organization of
climate transition infrastructure such as buildings and transportation networks
shape the overall urban form in cities over time. Since such
Poorly managed urban development in LICs and LMICs results infrastructure has high capital costs and operational lifetimes
in a rapid increase in urban land area and sprawl, proliferation spanning several decades, lock-in of carbon-intensive
of informal urban settlements, overburdened infrastructure, infrastructure and urban form is difficult and expensive to
and deterioration in the quality of life of urban dwellers. reverse. Early action by (i) adopting integrated urban spatial
Additionally, insufficient or poorly enforced urban planning frameworks that promote energy- and resource-
development regulations, underdeveloped markets, efficient urban development, (ii) embracing affordable low-
investment gaps, and capacity constraints coupled with limited carbon technologies, (iii) creating enabling conditions for
access to, and awareness of, affordable low-carbon solutions electrification of all urban services, (iv) improving wastewater
could lock in carbon-intensive urban form and infrastructure. and solid waste management infrastructure, and (v) preserving
This would worsen congestion and air pollution in these cities and managing existing green and blue assets can be cost-
while increasing their climate vulnerability and overall carbon effective in the near-term and lead to longer-term savings by
footprint. Even though CO₂ emissions from these cities optimizing energy use and future investment needs (adapted
currently is less than a quarter of global urban CO₂ emissions, from Lwasa et al. 2022). Pursuing low-carbon urban growth can
this share is expected to more than double by 2050 (to 56 also help address immediate local priorities such as reducing
percent) if current urbanization trends continue (Mahendra et traffic congestion, curbing air pollution, enhancing public
al. 2021). Pivoting away from high GHG emissions trajectories health, and improving overall productivity of urban areas.
historically followed by cities in HICs and pursuing low-carbon Moreover, reducing energy demand and promoting resource
urban development are essential to contain future increases in efficiency can reduce the climate vulnerability of cities to
global GHG emissions. However, cities in LICs and LMICs face extreme heat, droughts, and water scarcity.
numerous constraints in acting fast enough to moderate their
GHG emissions trajectories, which, if left unchecked, may
eventually offset any reductions in global emissions made by 1.2.1 Need for system-wide urban transformation
cities in HICs and fail to limit global warming to 1.5°C (adapted
from Mukim and Roberts 2023).
With cities accounting for over two-thirds of future GHG
emissions, urban areas will be pivotal in meeting global
Opportunities and challenges in climate change goals and country climate priorities if
1.2 advancing low-carbon growth in cities current urbanization trends continue. The transformation of
in rapidly urbanizing countries
urban systems will have a significant impact on global net-
zero emissions trajectories. Several cities are already acting
Cities in rapidly urbanizing LICs and LMICs have a unique on this opportunity by adopting ambitious commitments to
opportunity to avoid conventional urban development reduce GHG emissions (Box 1.2). Urban areas are complex
patterns by proactively making climate-informed choices systems with multiple interdependent sectors that
about their urban infrastructure and its spatial layout. contribute to infrastructure and service provision. As a
According to IPCC, rapidly growing small- and medium- result, realizing and implementing these targets at the pace
sized cities, whose urban form is still evolving and where and magnitude needed to meet global net-zero emissions
most of the urban infrastructure is yet to be built, hold some goals will require coordinated efforts and integration of
of the highest climate mitigation potential (Seto et al. 2014). sectors, strategies, and innovations (Lwasa et al. 2022).
21
Curbing urban expansion can facilitate the protection of

Box 1.2: City-level climate mitigation ecosystems such as forests and wetlands, which soak up
commitments excess rainwater and prevent runoff, help avoid locating
settlements in risk-prone areas, and reduce vulnerability to
flooding and extreme precipitation. Adopting resource-efficient
At least 826 cities and 103 regions across six technologies and passive design features in buildings can
continents that are home to 846 million people, promote efficient water use and improve thermal comfort,
representing 11 percent of the global population, reducing heat stress during heat waves. Adopting green
have adopted net-zero emissions targets, either infrastructure such as green roofs and increasing urban tree
economy-wide or targeting a specific sector (e.g., cover also have dual benefits (Sharifi 2021).
transportation, buildings) or emissions scope
(e.g., scope 1, or both scope 1 and 2)⁹ (Lwasa et
al. 2022). In some countries, the share of such Key challenges in avoiding rapid growth of
1.2.2
cities and regions has reached a critical mass, GHG emissions and risk of carbon lock-in
representing more than 70 percent of their total
population. These commitments range from Curbing a significant increase in GHG emissions and avoiding
‘carbon neutrality’ or net-zero GHG emissions locking in GHG emissions-intensive development may, however,
targets, which entail near-elimination of cities’ be particularly challenging in rapidly urbanizing LICs and LMICs,
own direct or electricity-based emissions (and where urbanization pressures are magnified by the urgency to
could include some type of carbon offsetting), to simultaneously achieve multiple development priorities. Urgent
more stringent emissions reduction goals. climate action in such contexts is primarily hindered by financing
Currently, 43 percent of urban areas with net- gaps, institutional and technical capacity constraints, and limited
zero emissions targets have also adopted availability and knowledge about low-carbon solutions. Pursuing
associated action plans, while almost a quarter low-carbon urbanization in these countries would require
have integrated net-zero emissions targets into developing and strengthening policy frameworks that are crucial
formal policies and legislation. Moreover, for advancing both urban development and climate-related
thousands of urban areas have adopted priorities (e.g., spatial planning frameworks, urban design
renewable energy-specific targets for power, regulations, building codes) to lay the foundation for more
heating/cooling, and transportation, and about ambitious climate-related policies in the medium-to-long-term.
600 cities are pursuing 100 percent renewable Similarly, in the near-term, these cities can pursue investments
energy targets, with some cities in developed that meet their immediate development needs yet result in a
countries (e.g., Basel, Reykjavik) already lower carbon footprint without compromising affordability or
achieving them. access (e.g., public housing incorporating passive design
Source: Lwasa et al. 2022; C40 2021.
techniques to reduce energy use, improving waste collection and
segregation to facilitate recycling) and over time invest in more
ambitious and expensive low-carbon infrastructure and solutions
(e.g., net-zero buildings, gas-to-energy systems in landfills,
Historically, urban climate action has been addressed through increasing circularity of the urban economy). Some key
individual infrastructure sectors such as buildings, challenges that need to be considered when developing and
transportation, and waste, mainly to align with city-level adopting low-carbon urban development trajectories for these
governance structures (World Economic Forum 2022). countries are briefly discussed below.
Complementing sectoral climate mitigation measures by
leveraging cross-sectoral or system-wide synergies in urban
areas to advance actions that have cascading effects across
key emissive sectors (e.g., transportation, energy, buildings,
land use) can help achieve deep GHG emissions reductions
(Lwasa et al 2022). Evidence from a systematic scoping of
urban solutions shows that the GHG emissions reduction
potential of integrating measures across urban sectors is
greater than the net sum of individual interventions (Lwasa et
al. 2022). Key areas of integration are renewable energy,
electrification, and optimization of demand for energy in
transportation, heating, and cooking. The relationship
between urban form and energy demand is another important
nexus. In addition to reducing travel demand and energy use
in urban service provision, the efficiencies introduced by
integrated urban spatial planning approaches can reduce
GHG emissions from embodied carbon in construction
material. Deploying strategies that combine electrification with
energy demand reduction through a compact and walkable
urban form can accelerate decarbonization of cities. Similarly,
conservation and restoration of terrestrial, freshwater, and
coastal ecosystems in urban areas can generate multiple
benefits, such as enhancing food security and biodiversity
conservation while protecting carbon sinks.
Since numerous natural and man-made systems interface in

urban areas, multi-sectoral and system-wide actions can
facilitate both climate mitigation and adaptation. For instance,
in addition to reducing GHG emissions from an expanding
urban footprint, compact and mixed-use urban development
approaches can contribute to climate resilience. Godar, Ethiopia © GlobalP / iStock
⁹ Scope 1 emissions are direct emissions from owned or controlled sources, and scope 2 emissions are indirect emissions from the generation of
purchased energy (Source: WRI/C40 2014).
22
Rapid physical expansion of cities and weak urban

Given the scale of informal urban settlements in developing
spatial planning mechanisms
countries, upgrading these settlements to improve the
quality of life of their residents through the construction of
Spatial planning policies, such as land-use and zoning new infrastructure could result in a significant increase in
regulations that influence the urban footprint and built form, GHG emissions if conventional practices and technologies
have significant potential to curb both land-use change and are used. On the other hand, informal settlements could
energy-related GHG emissions. However, urban spatial contribute to significant GHG emissions reduction if they
planning mechanisms are typically lacking, weak, or poorly are upgraded in a low-carbon manner (Lwasa et al. 2022).
enforced in most cities in Sub-Saharan Africa and Asia. While Addressing the current infrastructure deficits in these
several cities in these regions are working to strengthen their settlements—by deploying affordable lower-carbon
spatial planning frameworks, these efforts are in nascent stages. technologies and planning approaches and creating policy
Countries and cities that have not adopted robust spatial and incentive structures to further increase their
planning mechanisms or that have weak or poorly enforced accessibility and market penetration—provides
spatial policies cannot contain urban expansion or harness the opportunities to ‘leapfrog’ to low- or zero-GHG emissions
efficiencies arising from compact urban growth and risk locking systems and structures. For example, adopting energy-
in a carbon-intensive urban form. For example, policies to efficient housing solutions that incorporate such measures
stimulate new development in urban areas by increasing the as passive design, use of renewable energy, and improved
development potential of urban land may lead to a GHG waste management can enhance access to services while
emissions-intensive urban form in the absence of policy and realizing co-benefits by improving air quality and public
regulatory frameworks guiding such growth (e.g., integrated health. Furthermore, these efforts can leverage the existing
land-use and transportation plans). Similarly, lack of spatial high-density and mixed-use nature of these settlements to
planning frameworks in urban areas with limited development promote a more compact urban form and curb urban
potential or high land prices in central neighborhoods could expansion (UN Habitat 2018).
result in new development largely locating in urban peripheries,
leading to urban sprawl. Concentration of much residential Rapid growth in carbon-intensive transportation modes
development in the urban periphery could hinder future mixed-
use development or affect the feasibility of low-carbon In recent years, a rapid increase in motorization has
transportation modes such as bicycles or public transit. significantly increased transportation-related GHG emissions
in LICs. While emissions from the transportation sector are
Low access to electricity in urban areas
growing, access to public transportation is declining
considerably. With limited access to efficient public
Currently, on average, only 58 percent of the urban population in transportation systems, most urban residents in LICs rely on
LICs has formal access to electricity and, even in those cases, informal transportation, which accounts for up to 95 percent
people experience frequent and regular power outages, with as of all public transport trips in African cities. The projected
many as 25 outages per month in South Asian cities and every day increase in GHG emissions in the transportation sector will
in African cities (Westphal et al. 2017). Unreliable electricity supply be primarily driven by the mismatch between infrastructure
drives urban dwellers to use inefficient fossil fuel-based options being built and what is needed. While walking is the most
such as diesel generators and kerosene lamps to meet their important transportation mode in African and Asian cities,
power needs, contributing to higher GHG emissions. The typically accounting for between 35 and 90 percent of trips
expansion of urban services and associated energy demand in made, most infrastructure investment is directed toward
these cities, coupled with already increasing energy consumption supporting cars and two-wheeler transportation modes.
and population growth, will likely increase GHG emissions if the These transportation methods currently account for 86
power supply doesn’t keep pace with demand and national percent of all vehicles in LICs but only 29 percent of trips,
electricity grids are carbon intensive (Westphal et al. 2017). This can while receiving 62 percent of transportation investment. In
also significantly limit the deployment of electrification solutions contrast, in cities where walking, cycling, and public
throughout various urban sectors. transportation account for about two-thirds of trips made,
these modes received only one-third of transportation
Acute service delivery gaps in informal settlements funding (Venter et al. 2019).
According to UN Habitat, 1 billion people live in informal Untapped mitigation potential in the waste sector
settlements globally. SSA has the highest concentration of
urban dwellers living in informal settlements (59 percent), The urban waste sector is a significant contributor to GHG
followed by Asia (28 percent) (UN Habitat 2018). There are emissions, particularly methane (CH₄), and the second
several factors that limit the carbon footprint of informal largest contributor to global urban GHG emissions after the
settlements, which is generally lower than that of other energy sector (Lwasa et al. 2022). Emissions in this sector
parts of cities with conventional housing and infrastructure are primarily driven by open burning of waste and waste
(UN Habitat 2018; City Climate Finance Gap Fund 2023): disposal in landfills without landfill gas capture systems.
LICs account for approximately 5 percent of globally
Lacking conventional infrastructure and basic services generated waste, which is projected to increase more than
such as durable housing, water supply, and sanitation, threefold by the 2050s (Kaza et al. 2018). The fastest
informal settlements generally consume less energy. growth in waste generation is expected in SSA and South
Because of limited or no access to formal electricity, use Asia, where most of the waste is managed through open
of appliances and systems such as space heaters and dumping (City Climate Finance Gap Fund 2023), which
water heating and cooling, which are the primary drivers contributes to air, water, and soil pollution. A rapidly
of energy demand in buildings, is low. increasing urban population with rising incomes and
resource-intensive consumption patterns could exacerbate
A high density of dwellings and other structures often waste management challenges in LICs, where safe waste
constructed using locally available temporary or recycled collection and disposal is already limited, contributing to a
material is typically less carbon-intensive compared to formal significant increase in CH₄ emissions. Improving the rate of
settlements that use conventional building materials such as recycling and promoting circular economy approaches are
concrete and steel. The density of informal settlements also often challenging, as these cities lack basic waste collection
contributes to containing their physical footprint. services and infrastructure.
23
Lagos, Nigeria © peeterv / iStock
Lack of strong building regulations This will also contribute to creating and strengthening
institutional, regulatory, and market conditions to drive low-
carbon choices and stimulate necessary public and private
The buildings sector accounts directly and indirectly for 30 investment flows.
percent of the energy consumed globally, including almost 55
percent of electricity consumption (GlobalABC/IEA/UNEP
2020). The carbon footprint of buildings depends on a Enabling the urban low-carbon transition
1.3.1
combination of factors such as the need for cooling and through vertical and horizontal integration
heating, energy mix, and energy intensity of equipment and
appliances. With substantial new building stock being
constructed in urban areas in LICs and LMICs to Given the complex and multi-sectoral nature of urban systems,
accommodate growing urban populations, cities need realizing ambitious GHG emissions reductions and system-
building design regulations that require a combination of wide transition in urban areas requires contributions from
measures that are both passive (daylight optimization) and public, private, and non-state actors (e.g., city governments,
active (energy efficiency requirements for appliances such as public transit agencies, water utilities, power distribution
water heaters) to reduce energy demand. However, many companies, private developers, equipment manufacturers),
countries lack building regulations or face challenges with each playing a unique role. Additionally, since many urban
enforcing them. In cases where building regulations are mitigation actions go beyond cities’ jurisdiction and are linked
enforced, energy performance requirements are either absent with national-level climate actions and the country’s long-term
or not mandated. Where such regulations exist, effective vision for decarbonized development, they need to be
policies are needed to support market penetration of coordinated with various levels of government (e.g., ministry of
affordable energy-efficient/low-carbon equipment and environment, ministry of planning, ministry of finance, state-
appliances. In addition, policymakers and building owners level entities). For instance, undertaking large and complex
need more knowledge about the energy performance of low-carbon urban infrastructure projects are often beyond the
different solutions, the capacity to deploy them, and financial capacity of local jurisdictions, institutions, and budgets.
incentives for undertaking such investments. The lack of Electrification is another example where actions at different
energy performance requirements for buildings and policies levels of government and across sectors must be coordinated
supporting their uptake could lock in energy-intensive (e.g., development of power and transportation infrastructure
building stock in these countries for decades. to enable the deployment of EVs). Coordinated efforts across
urban jurisdictions, transit agencies, and utilities and
collaboration with national and regional governments and local
Role of multi-level climate governance stakeholders are important for mobilizing institutional,
1.3 in harnessing urban climate action technical, and financial resources.
As such, effective coordination of efforts is essential for

Rapidly urbanizing cities in LICs and LMICs have significant planning and implementing integrated urban climate action.
potential for integrating low-carbon growth considerations in This can be facilitated by policy frameworks, institutional
earlier stages of development, which could prevent carbon structures, and financing and tracking mechanisms that are
lock-in and enable them to shift toward net-zero GHG integrated vertically (across different levels of governments)
emissions in the longer term. However, they face a range of and horizontally (across relevant sectors) (Figure ES.1). Vertical
challenges in undertaking climate mitigation action. integration involves aligning and coordinating climate policies,
Planning and implementing comprehensive and ambitious strategies, and implementation (e.g., NDCs, LTSs, city-level
sectoral and system-wide climate mitigation activities are climate action plans) across different government levels,
complex processes that require political commitment and leveraging the potential of each through collective efforts and
follow-through, buy-in of stakeholders, access to finance promoting top-down and bottom-up information exchange.
and financing instruments, and integrated action across Horizontal integration involves coordinating efforts across
sectors and actors. Developing and strengthening government ministries and sectoral departments (e.g., urban,
institutional structures, governance frameworks, and transportation, energy, water, environment) and external
mechanisms for cross-sectoral coordination across multiple stakeholders (e.g., academia, business and industry, private
policy domains will be crucial for enabling and accelerating investors, non-profit organizations, citizen groups) (Adapted
rapid decarbonization in cities. from C40 2020).
24
Multi-level climate governance is key for planning Augmenting capacities of cities to undertake
and implementing urban mitigation action integrated climate action
The IPCC Special Report on Global Warming of 1.5°C (SR1.5) The effectiveness of multi-level governance in advancing
identified multi-level climate governance¹⁰ as an enabling integrated climate action depends on the capacity of individual
condition that facilitates systemic integration and entities (e.g., national, state, and city governments) to develop
transformation to keep global temperature rise below 1.5°C and coordinate mitigation action within their jurisdictions.
(Lwasa et al. 2022). Climate goals at regional, national, and Capacities of city governments in developing countries to plan
international levels are most effective when local governments and implement urban mitigation action are especially
are involved in their creation and implementation along with constrained. Smaller urban settlements that may dominate the
higher-level actors (Fuhr et al. 2018; Kern 2019; Hsu et al. urban landscapes of LICs and LMICs need targeted
2020). Smoke and Cook (2022) argue that the potential coordination and support from regional and national entities. A
comparative advantage of subnational governments in 2022 analysis by the NDC Partnership¹¹ states that between
planning for public functions within their territories in an 2018 and 2022, one of 10 requests for support received were
integrated way is highly relevant to climate change. They from cities and sub-national governments, about half of which
suggest that subnational governments, regardless of their were from SSA. Further, 70 percent of these requests sought
current role in climate-informed planning and/or investments, technical assistance related to policy, strategy, legislation,
may often have a better sense of how such interventions can knowledge products, monitoring and evaluation (M&E),
be synergistically planned and implemented in specific budgeting, and investments (NDC Partnership 2022).
locations to reduce carbon footprint, enhance resilience, or Addressing these capacity gaps is crucial for cities to
yield other co-benefits. Lastly, the involvement of governments productively participate in multi-level governance structures.
at multiple levels is crucial for cities to plan and implement GHG
emissions reduction targets (Seto et al. 2021). When actors Governments need easy-to-use assessment frameworks that can
work across multiple scales of governance, urban interventions support policymakers and practitioners to identify the main gaps
can have cascading effects across sectors and help reduce and barriers for integration at different levels and those related to
emissions outside a city’s administrative boundaries. Currently, capacity at the city level. Such a context-specific diagnostic can
multi-level climate governance frameworks and structures are then be used to create a roadmap that takes a systematic and
either not in place, non-functional, or in nascent stages in many staged approach to addressing the issues identified. The
LICs and LMICs. Concerted efforts are needed to establish and subsequent chapters of this report propose such a diagnostic
strengthen such frameworks to enable these countries to framework and illustrate how it can be applied to a specific
pursue low-carbon urbanization. governance context to identify tailored issues and solutions.
Kigali, Rwanda © narvikk / iStock
¹⁰ Multi-level governance is defined as a framework for understanding the complex interaction of the many players involved in GHG generation and mitigation
across geographic scales—the ‘vertical’ levels of governance from neighborhoods to national and international levels, ‘horizontal’ networks of non-state and
subnational actors at various scales, and the complex linkages between them. This more inclusive understanding of climate governance provides multiple
pathways through which urban actors can engage in climate policy to reduce emissions (Lwasa et al. 2022).
¹¹ The NDC Partnership supports countries in implementing their NDC—commitments made by countries under the Paris Agreement to reduce national GHG
emissions and adapt to the impacts of climate change.
25
Chapter 2. National climate change strategies lack robust consideration of urban climate action
With urban areas in developing countries expected to be

significant drivers of GHG emissions growth, it is urgent to Box 2.1: NDC and LTS: Key country-specific
factor the long-term impacts of urbanization and near-term instruments for achieving Paris Agreement goals
efforts cities are taking to pursue low-carbon growth into
countries’ climate planning efforts. Undertaking integrated The Paris Agreement, a legally binding international
mitigation action through coordinated planning, target treaty on climate change, requires each country to
setting, policy development, implementation, and monitoring periodically communicate, through an NDC, its
across different levels of government can elevate the urban contribution to global GHG emissions reduction
climate action agenda to the national level. For instance, this efforts to achieve the Agreement’s goals. The
can help ensure that sectors or measures prioritized for process is complemented by an ‘ambition ratcheting
mechanism’ that allows each country to take stock of
mitigation action at the city level based on local conditions
progress achieved every five years and offer more
are also prioritized in national climate change strategies such
ambitious actions through an update to its NDC.
as NDCs. National climate planning that reflects the impact
of transformative actions in urban areas such as climate- Article 4.19 of the Paris Agreement states that all
informed spatial planning can help shape national countries “should strive to formulate and
decarbonization pathways. In turn, countries’ LTSs can communicate long-term low greenhouse gas (GHG)
create the enabling conditions to avoid future emissions by emission development strategies (LTS) mindful of
accounting for the risks of locking in carbon-intensive urban the long-term goals of the Paris Agreement.” This
infrastructure and built form that could create significant was reiterated at the Conference of Parties (COP)
socio-economic barriers for GHG emissions reduction in the 27, the 2022 United Nations Climate Change
longer term. Incorporating urban mitigation considerations Conference, by its decision 1/CMA4, which urges
and actions into the development of, and subsequent Parties to communicate new or updated LTSs
updates to, medium- and long-term national climate aimed at enhancing contributions to global net-zero
strategies could help scale up their ambition and potentially emissions by or around mid-century, aligned with
the best available science and with their NDCs,
reduce efforts needed to decarbonize other sectors. More
considering different national circumstances.
importantly, by aligning and integrating city-level climate
measures with efforts at the national level, city governments
can acquire the mandates and resources to implement them
and benefit from capacity and financial support from higher Status of integration of urban considerations
levels of government. 2.1.1
in NDCs
NDCs and LTSs as bridges between With most countries still in the process of developing their long-
2.1 national and urban decarbonization goals term decarbonization strategies, NDCs produced in the first
two rounds reflected a shorter-term view on reducing GHG
emissions and showed a lack of actions at the scale and pace
The broad landscape of climate strategies at multiple levels necessary to achieve the Paris Agreement’s long-term
of governance typically includes national climate change temperature goals. Although there is a general increase in the
action plans, sectoral decarbonization or climate resilience level of ambition in the updated NDCs submitted in the latest
strategies or plans, and state/province and city-level climate round (before COP27 in 2022), the estimated reduction in
action plans. Within this broad landscape, NDCs and LTSs emissions falls far short of what was established under the
Paris Agreement.¹² The policies and laws adopted or planned
stand out as critical instruments that (i) consolidate and
in countries and the investments made to achieve inadequate
communicate a country’s vision for long-term low-carbon short-term targets could create technical and economic
development (LTS) and (ii) support a timely climate obstacles to achieving Paris Agreement goals and impose
transition through short- and medium-term targets, policies, higher costs to economies and societies in the long run. To
and actions (NDC) (Box 2.1). According to IPCC, pursuing address this issue, the next round of NDCs (to be submitted by
horizontal and vertical integration to reflect the impact of 2025) needs to reflect actions that could lead to the substantial
urbanization and potential urban mitigation measures on reduction in emissions required by 2030 to stay on track to
national GHG emissions trajectories can help (i) leverage limit global temperature rise to well below 2°C. Establishing
spillover effects of urban mitigation measures in achieving climate-compatible, long-term development visions and
national (and global) climate goals and (ii) stimulate the associated transformation pathways can help national and
creation of well-aligned multi-level climate policy and subnational governments identify and sequence actions, which
institutional frameworks in countries. NDCs and LTSs can can then be integrated into shorter-term commitments in
thus be important instruments that link national subsequent NDC submissions.
decarbonization goals with efforts to advance low-carbon
urban growth. Importantly, they can send clear signals both Urban content in current NDCs
nationally and to the international development community
on specific needs for urban climate action. Including low- A 2022 UN Habitat analysis of the urban content of 193
carbon urbanization considerations in NDCs and LTSs can NDCs submitted between March 2017 and June 2022
enable the identification and tailoring of mitigation actions showed that the overall number of NDCs with urban
that can be implemented in urban areas; reflect local content increased marginally (64 percent in 2022 from 60
priorities, capacities, and needs in national climate percent in 2017). The nature of this content ranges from a
planning; and facilitate securing finance for urban climate high-level description of climate vulnerability and GHG
action. Moreover, it can foster innovative and ambitious emissions from urban areas to specific actions and targets
mitigation solutions in cities with greater capacities. dedicated to urban sub-sectors (UN Habitat 2022b).
¹² Full implementation of all latest NDCs (including conditional elements) is estimated to lead to a 3.6 percent emissions reduction by 2030 relative to 2019
levels; taking this into account, the best estimate of peak temperature increase in the 21st Century is in the range of 2.1°-2.9°C, depending on underlying
assumptions (UNFCCC Secretariat 2022a).
27
For example, Indonesia’s NDC identifies a series of measures

to reduce GHG emissions in the sanitation sector that will need
to be implemented in urban areas but doesn’t include specific Box 2.2: Role of LTSs in decarbonizing
targets (Republic of Indonesia 2022). In contrast, Colombia’s development
NDC has specified at-source separation of solid waste in
municipalities with populations of less than 20,000 individuals “LTSs are central to achieving ambitious long-term
through the creation of 38 recovery organizations national, subnational, sectoral, and global climate
(Government of Colombia 2020). Between 2017 and 2022, the goals, and also to guide near-term investment
number of NDCs with specific actions dedicated to urban sub- decisions in both the public and private sectors.
sectors or where urban sectors are identified as a priority LTSs lay out a path for countries to decarbonize in
increased from 14 percent to 24 percent. While this increase is a timely manner to keep global warming well below
a step in the right direction, the analysis highlighted a large 2°C (while pursuing efforts to limit it to 1.5°C), build
gap between mitigation responses and mitigation-related risks climate resilience, avoid costly stranded assets,
of urban growth. Most NDCs (74 percent) with urban content and facilitate an orderly transition for all sectors of
focus on mitigation responses and only about half (47 percent) the economy and society. This not only minimizes
on mitigation-related risks, making it difficult to track progress climate change impacts and vulnerabilities but
and evaluate the impact of mitigation responses. Further, only opens up new opportunities. LTSs should thus be
about one of four NDCs include mitigation responses for key reference points for countries’ climate and
specific urban sub-sectors such as energy, transportation, and development planning and policy reforms, including
sanitation, and very few include responses in other key urban updates to NDCs.”
sub-sectors that have high emissions reduction potential, such
as land-use change. Lastly, the risks and responses are MDB Principles for Long-Term Strategy (LTS) Support 2021.
mentioned largely at the national level instead of at urban
levels. Overall, the analysis shows that there is significant LTSs enable a whole-of-economy approach to
potential for raising the climate mitigation ambition of NDCs by decarbonizing development by considering short-to-
including more scaled-up urban mitigation action and aligning medium-term targets in the context of a longer-term
it with already identified mitigation risks and responses at the pathway and facilitating development of new
national level (UN Habitat 2022b). economic models. By using an economy-wide
approach, LTSs can help define critical short- and
medium-term actions to support timely reform of
Benefits of aligning urban climate action and national existing policies to facilitate a just transition for
climate priorities affected workers and communities, address social
and fiscal challenges, and lift market and regulatory
Making concerted efforts to align climate mitigation barriers to needed investments. Governments can
priorities and action at the urban level with national climate use LTSs as overall development strategies with
change strategies such as NDCs can have several benefits:· sequential and coordinated sectoral measures and
policies to facilitate a transition of their economies
Aligning policies can increase the contribution of urban toward net-zero emissions by around mid-century.
areas to achieving national climate goals.
Alignment with NDCs can help cities access domestic

public and private financing for climate projects. Limited
inclusion of urban climate action in national climate Several LICs and LMICs have prioritized harnessing the
strategies or misalignment between national- and city-
economic potential of urbanization to meet their long-term
level strategies is likely to constrain cities’ ability to
mobilize climate finance. development goals. As discussed in Chapter 1, given the
anticipated magnitude of increase in the urban footprint of
Robust climate policies and concrete mitigation these countries, pursuing carbon-intensive urban development
measures at city level that are aligned with both could hinder their long-term climate goals, locking in GHG
national goals and local development needs can send a emissions for several decades because of the long lifespan of
strong signal to investors and development partners urban infrastructure (Tong et al. 2019). Such carbon-intensive
and help mobilize external resources. urban growth will increase the global cost of decarbonization
and require greater effort from countries to transition to
Such policy alignment can be achieved by promoting decarbonized development in the longer-term. LTSs can be
collaboration across various government levels and should key instruments for countries to identify early actions and
be accompanied by clearly defined roles and mandates for longer-term enabling conditions to avoid carbon lock-in and
urban areas for delivering NDC priorities. stranded assets in urban areas.
Role of LTSs in enhancing linkages LTSs translate economy-wide climate and development
2.1.2 between long-term urban development objectives into concrete actions by defining clear sectoral
and decarbonization goals decarbonization pathways for a country, especially for key
emissive sectors, in line with national development priorities.
An LTS describes a country’s long-term strategy for Assessing the GHG emissions trajectories of different
decarbonized, climate-resilient development and lays out the urbanization scenarios (e.g., business as usual vs. low carbon)
nature and sequence of the physical transformations required as part of LTS development can facilitate (i) the formulation of
to achieve it, including medium- and long-term milestones¹³ concrete low-carbon urban development pathways consistent
(Box 2.2). LTSs define short- and medium-term actions with relevant sectoral decarbonization strategies and (ii)
including those that are urgent and synergistic with other identification of city-level mitigation action aligned with interim
development objectives that must be taken to avoid carbon LTS targets that can feed into these sectoral decarbonization
lock-in and opportunity costs of delayed action. It also identifies strategies and their implementation plans. In countries that
conditions, policies, and regulations that enable lasting socio-
don’t have an LTS, developing low-carbon urbanization
economic transitions toward countries’ long-term net-zero
emissions goals. As such, LTSs can inform governments’ plans pathways can trigger and inform their development. In some
for policy reforms, public investment, and mobilization of developing countries, a robust long-term net-zero strategy for
financial resources from various sources to deliver the climate the capital city or a group of major cities can deliver a
transition. In fact, detailed LTSs can serve as a basis for substantial share of GHG emissions reduction needed in their
domestic policy design and inform economy-wide and sectoral national LTSs. It can also establish models for replication in
development strategies, including for urban development. other cities.
¹³ This interpretation is in line with the shared MDB Principles for Long-Term Strategy Support (2021), announced at COP26 in 2021.
28
Urbanization considerations in LTSs

Box 2.4: Urban mitigation in India’s Long-Term
The integration of urban climate action into LTSs remains Low-Carbon Development Strategy
limited. While several countries are currently establishing
their LTSs, as of July 2023, only 66 had submitted their India’s recently published Long-Term Low-
strategies to the UNFCCC. Of these, three are in South Asia Carbon Development Strategy (LT-LEDS)
(India, Nepal, and Sri Lanka) and six in Sub-Saharan Africa identifies seven key transitions to low-carbon
(Benin, Ethiopia, The Gambia, Nigeria,¹⁴ South Africa, and development pathways including promoting
Zimbabwe).¹⁵ All these LTSs include mitigation options and adaptation through urban design, energy, and
measures in key urban sub-sectors such as buildings, material-efficiency in buildings and sustainable
energy supply, transportation, and waste, yet several have urbanization. The LT-LEDS recognizes that India’s
identified urban areas, settlements, and the housing sector cities currently contribute substantially to national
as only adaptation priorities, not recognizing their GHG emissions, and projected population and
significant mitigation potential or risk of carbon lock-in economic growth trends for urban areas will be
(UNFCCC Secretariat 2022b). However, all LTSs have the main drivers of future GHG emissions
highlighted the importance of subnational governments, increase. It also highlights the urban buildings
sector as a key area for mitigation action since it
including cities, in achieving their long-term goals,
accounts for more than 40 percent of energy
particularly in areas within their jurisdictions such as spatial consumed in cities. India’s LT-LEDS identifies city
and urban planning, housing, transportation infrastructure planning, buildings, and municipal services as the
development, and waste collection and management three areas that need a directional shift to
(UNFCCC Secretariat 2022b). Boxes 2.3, 2.4, and 2.5 promote low-carbon urbanization. Climate-
provide insights on Ethiopia, India, and Nigeria, responsive urban planning, constructing energy-
respectively, which have included low-carbon urbanization efficient buildings, and improving efficiency of
considerations in their long-term decarbonization visions. It municipal services including water supply, waste
is important to note that challenges in integrating urban management, and sewage treatment are
climate action into LTSs may differ from those for NDCs, as considered key approaches. The strategy has
there are more uncertainties, limited understanding of cost also identified existing policies and programs to
implications, and more trade-offs to consider given the advance these shifts.
economy-wide nature and longer time horizons of LTSs.
Source: Government of India 2022.
Box 2.3: Low GHG emissions interventions for

urban areas in Ethiopia’s LTS
Ethiopia has recently published its LTS, Box 2.5: Nigeria’s long-term vision for its cities
‘Ethiopia’s Long-term Low Emission and Climate
Resilient Development Strategy (2020–2050), Nigeria has published the ‘2050 Long-Term
which outlines net-zero and climate-resilient Vision for Nigeria (LTV-2050)’ as a preparatory
development pathways for six sectors—energy, step toward the development of its LTS. LTV-
transportation, agriculture, forestry and land use, 2050 outlines eight sectoral ‘visions’ that need to
waste management, and industrial processes and be realized to achieve sustainable development
product use. While the strategy doesn’t include goals, one of which focuses on ‘Urban
an overarching assessment of the contribution of Settlements.’ LTV-2050 emphasizes that
Ethiopia’s urbanization trends to GHG emissions Nigerian cities will play a key role in the country’s
growth, the pathway for the sanitation sector climate change mitigation efforts because of an
considers the impacts of a growing urban
increase in GHG emissions from a growing urban
population and changing consumption patterns
population and production activities. The vision is
on waste generation. Additionally, most of the
low-emissions interventions identified for the for cities to reduce their carbon footprint by 50
sector focus on diverting organic waste from percent by 2050 and become carbon-neutral and
landfills, landfill gas management, and improving climate-resilient by the end of the century.
urban domestic wastewater treatment in cities. Leveraging synergies between sectors such as
Ethiopia’s LTS also identifies actions in the electricity, water, wastewater, and transportation
energy sector (e.g., electrification, promotion of along with curbing urban sprawl by promoting
efficient technologies in all end-use services in compact urban areas and strengthening
urban households) and transportation sector development regulations are the main strategic
(e.g., improvements to mass transit and non- approaches for achieving this vision. Nigeria’s
motorized transit) that should be implemented to LTS will likely outline the various GHG emissions
meet overall GHG emissions reduction targets for scenarios and elaborate on the key interventions
these sectors. that will support this long-term vision.
Source: Government of Ethiopia 2023. Source: Government of Nigeria 2021.
¹⁴ Nigeria has published a long-term development vision that will inform the development of its LTS (Federal Government of Nigeria 2021).
¹⁵ UNFCCC Long-term strategies portal. Accessed on: August 31, 2023.
29
Role of cities and other subnational actors in co- Coherence between NDC and LTS development and
creation of LTSs implementation processes is especially important for
urban climate action in LICs and LMICs, where most
Systematically involving subnational and city governments mitigation efforts need to focus on avoiding GHG
and local stakeholders in the LTS development process can emissions increase and reducing the risk of carbon lock-
contribute to its robustness and enable successful in. LTSs can advance these long-term outcomes by
implementation. Executing economy-wide strategies such as considering the needs and issues related to low-carbon
LTSs requires establishing strong linkages between urbanization against potential trade-offs with other
development and climate-related priorities at sectoral, priorities. This also helps create longer-term policy
subnational, and city levels. In recent years, sectoral and signals for decision makers that can guide short-to-
subnational entities in several developing countries have medium-term actions, which can be pursued through
formulated short- and long-term climate action plans or net- NDCs and their subsequent updates, including:
zero strategies (e.g., Urban Low Emissions Development
Strategy, state- and city-level climate action plans).¹⁶ Prioritizing the set of climate-informed policy processes
Collaborating with sectoral and subnational authorities that that are expected to lead to long-term system-wide
have led these efforts can provide important inputs to effects (e.g., integrated urban planning) and/or
countries’ LTS development or subsequent NDC updates.
These entities can help incorporate urban-specific data and Supporting policies and actions consistent with specific
transition pathways in long-term modelling, enabling more sectoral decarbonization pathways (e.g., adopting
concrete technological, behavioral, or other factors to be energy performance standards and increasing their
considered in target setting and refinement of monitorable stringency over time), both of which need to be
performance indicators for urban climate action. They can advanced through NDCs and their subsequent updates.
support the assessment of slow-onset impacts of GHG
emissions that are specific to urban areas (e.g., evolving However, effective integration between LTSs and NDCs is
urban forms and land use, level of informality, travel demand currently limited. There has been little clarity from countries
patterns), which may create carbon lock-in or, in contrast, on how their processes for short-to-medium-term climate
have positive spillover effects beyond urban areas (for further action and long-term decarbonization planning are linked.
details, see Chapter 5, Section 5.1). In some cases, this According to a 2020 analysis by the Organization for
information can help prioritize interventions and policies that Economic Co-operation and Development (OECD), “more
show substantial long-term benefits and prevent costly lock- than half of the LTSs submitted by October 2019 do not
in. They can also support the identification of local needs for contain any explicit linkages to the country or region’s
strengthening the enabling conditions for long-term NDC” (Falduto and Rocha 2020). This could be attributed to
paradigm, technology, behavior, and system shifts to the limited experience in developing, and communicating
stimulate low-carbon transition in urban areas. Further, about, NDCs and LTSs, the latter of which is still missing in
subnational/city governments can integrate LTS long-term many developing countries. Some countries have
goals into urban development planning and budgeting, recognized the need for stronger and more explicit
translate urban mitigation measures into investments, and alignment between their LTS and NDC (Falduto and Rocha,
encourage private sector participation. Additionally, co- 2020). This is reflected in the updated NDCs submitted in
creating an LTS with city governments and stakeholders can 2022 and 2023, which show improved alignment with
help align the LTS with urban priorities, promote strong local LTSs. For example, Ethiopia’s recently submitted LTS
ownership and buy-in, and enable a more just transition, establishes clear linkages with its NDC (Box 2.6.).
given city governments’ proximity to the communities that are
likely to be affected by its implementation.
Participation of subnational governments and local stakeholders

in the LTS development process should be supported by a Box 2.6: Linkages between Ethiopia’s NDC and LTS
framework that clearly assigns responsibilities, including goals,
timeframes, and indicators across different levels of Submitted in mid-2023, Ethiopia’s LTS is fully aligned
government. National government support is often required for with the country’s 10-Year Development Plan and 2021
establishing or strengthening local institutional structures for updated NDC and includes a mechanism for informing
LTS development (e.g., ensuring that local entities have clear
the ambition of targets in subsequent NDC revisions.
roles and responsibilities, political and budgetary support,
The LTS compares a business-as-usual (BAU) scenario
processes to encourage inclusive and transparent stakeholder
engagement). with three decarbonization scenarios:
Maximum ambition scenario: Assumes maximizing

Limited harmonization of NDCs and LTSs is a climate ambition early on, leading to net-zero
2.1.3
barrier to integration of urban climate action emissions by 2035.
NDC-aligned scenario: Factors in NDC’s

Harmonizing LTSs and NDCs can ensure that they are
emissions target until 2030 and further
mutually supportive and that NDC short- and medium-term
increases the ambition of targets by 2035 to
goals are aligned with the country’s long-term objectives.
Coordinated development of LTS and NDC can leverage the achieve net-zero emissions by 2050.
many interdependencies in the planning of short-, medium-,
and long-term policies, create a reciprocal relationship, Late-action scenario: This scenario illustrates
generate efficiencies, and increase political consensus. For how net-zero could be achieved if the fiscal
example, a country can formulate its long-term vision and space for early action is not available by
pathway for 2050 while identifying interim targets for NDCs assuming that NDC targets for 2030 are
that are aligned with its LTS (Climate Analytics 2022). This missed and most ambition is implemented
can also help optimize the institutional effort required from from 2040 to 2050.
various ministries and departments involved in their (Continued)
development, implementation, update, and monitoring.
¹⁶ See the example of Accra’s Climate Action Plan in Box 3.3.

30
The literature covered a range of geographies, urban climate

issues, key mitigation interventions, and methodologies to
Box 2.6: Linkages between Ethiopia’s NDC and
assess their impacts and approaches and recommendations to
LTS (continued) address barriers to the implementation of climate action,
focusing on rapidly urbanizing countries in South Asia and SSA.
A cost-benefit analysis undertaken for the three
LTS scenarios illustrated that the NDC-aligned A range of reference material and tools are available for
scenario presents the best proportion of costs to
analyzing and improving urban climate action integration
avoided costs and added benefits. Ethiopia will
develop an MRV system to evaluate progress (Solecki et al. 2015; C40 and ARUP 2017; GCOM 2021; GO-
toward implementing the actions to achieve its Science 2016; NDC Partnership Climate Toolbox;¹⁷ UN-
LTS objectives. This will help the country identify Habitat 2021). Some reviewed approaches target only
opportunities for increasing the ambition of its national governments (Box 2.7) or only city governments
next NDC. To this end, Ethiopia plans to (The McKinsey Center for Business and Environment and
eventually fully mainstream the MRV framework in C40 2017; LSE 2019). Others cover a multitude of barriers
its 10-Year Development Plan and successive and challenges and offer recommendations that may be
development plans with targets and indicators difficult to tailor to specific countries and local contexts. Still
provided for each sector others are too locally specific in their recommendations and
adopting them in different contexts may be challenging.
Source: Federal Democratic Republic of Ethiopia Ministry of
Environment and Forest (2015); Government of Federal
Democratic Republic of Ethiopia (2023).
Box 2.7: Climate Action Tracker’s approach to

There is a growing body of literature on key approaches and assessing readiness of national governments to
processes to strengthen the link between NDCs and LTSs transition to zero-emissions pathways
(Falduto and Rocha 2019; Aguilar-Jaber et al. 2020; Hans et al.
2020). The key elements of this effort include defining the
integrated vision; enhancing existing policies and legal The Climate Action Tracker¹⁸ evaluates the ability and
instruments and ensuring coherence; aligning approaches for readiness of national governments to enable the
GHG emissions modelling and target setting between LTS, NDC, required economy-wide transformation toward a zero-
and sectoral decarbonization strategies; and evaluating and emissions world. The assessment has four aspects of
aligning M&E processes. Furthermore, harmonization between governance covering key enabling factors for
these two strategies requires clarifying the processes for effective climate action:
stakeholder engagement and institutional arrangements for
developing plans; ensuring political leadership; securing financial The political commitment of the government to
and technical resources; and, finally, establishing timely and decarbonization, including high-level government
aligned processes for updating and revising the plans. leadership and quality of decision making.
Supporting integration of urban climate The institutional framework to achieve national

emissions reduction targets through effective
2.2 mitigation action into national climate coordination, knowledge infrastructure, and
change strategies adequate resources.
As discussed in Chapter 1, rapidly urbanizing LICs and LMICs The processes to develop, implement, and review
have an unprecedented opportunity to avoid conventional mitigation policies in line with the Paris
patterns of urban development by promoting lower-carbon and Agreement’s temperature goals build on the
climate-resilient urban growth. Given their significant socio- UNFCCC transparency framework,¹⁹ and include
economic constraints and acute limitations related to urban ratchet-up mechanism.
governance, institutional, and financial capacities, the climate and
urbanization challenges need to be tackled simultaneously. The ability and willingness to engage with relevant
Pursuing climate mitigation action in urban areas that helps stakeholders on policy development, including
reinforce their development priorities while being consistent with level and scope, just transition, and exogenous
countries’ overall climate and development priorities is therefore non-state interests and influence.
crucial for securing buy-in at the local level and requisite
mandates and resources from higher levels of government. This Source: Climate Action Tracker 2021a.
section lays out the analytical approach taken in this report to
identify the focus areas and assess the key barriers, enabling
conditions, and approaches to support integration of urban
climate mitigation action into national climate change strategies
and their implementation in developing countries. Based on the literature review, an analysis was conducted to
identify the common challenges and current practices on
horizontal and vertical integration of urban climate action in six
Analytical approach—three key pillars rapidly urbanizing countries and cities in Asia and Sub-Saharan
2.2.1
of integration Africa: Bangladesh (Dhaka), South Africa (Cape Town), Ghana
(Accra, Kumasi, and Tamale), Kenya (Nairobi), Ethiopia (Addis
The focus areas to support integration and associated barriers Ababa), and Indonesia (Balikpapan, Jakarta, and Semarang). This
and solutions that are proposed in this report are derived from comprised (i) examples of integrating climate considerations into
desk-based research and analysis that revisited recent literature urban development policy and investment planning and (ii) gaps
on integration of (i) urban development and climate strategies and barriers to the integration of urban climate action in national
and (ii) local and national urban climate action. climate change strategies.
¹⁷ The Climate Toolbox is a curated, searchable database of tools and resources to support NDC planning and implementation. Available at:
https://ndcpartnership.org/knowledge-portal/climate-toolbox.
¹⁸ The Climate Action Tracker is an independent scientific project that tracks government climate action and measures it against the globally agreed Paris
Agreement aim of "holding warming well below 2°C and pursuing efforts to limit warming to 1.5°C."
¹⁹ Transparency arrangements under the UNFCCC facilitate the availability of up-to-date data on countries’ GHG emissions, policies, and measures,
progress toward targets, climate change impacts and adaptation, levels of support, and capacity-building needs.
31
This report identifies three key pillars for integration of These approaches aim to foster systematic and robust
urban climate action into national climate change strategies integration of urban considerations into the development
and its implementation that collectively cover the main and implementation of national climate change and
themes and findings that emerged from the literature development strategies such as NDCs, LTSs, and other
review and analysis of specific countries/cities (Figure 2.1): relevant sectoral strategies. The proposed approaches are
(i) integrated policy frameworks and institutional structures, expected to be applicable across countries with diverse
(ii) strengthened finance mobilization, and (iii) evidence- policy, institutional, and capacity contexts and tailored to
based policy processes and integrated MRV systems. Each their specific policy goals, mandates, levels of access to
of these pillars is discussed in subsequent chapters. climate finance, and capacity and data gaps. Several
country and city examples are included to provide practical
The process of integration can be pursued through a robust illustrations.
roadmap that clearly identifies:
Other aspects of integration
The targeted points at which integration would typically be
Other aspects of integration identified in the literature
required—from both content and process perspectives—to
(Climate Action Tracker 2021a; Lwasa et al. 2022; Smoke
achieve more efficient policy processes and outcomes.
and Cook 2022; UN-Habitat 2021; World Bank 2022) that
are not explicitly discussed in this report include:
Feasible approaches to achieve integration specific to
the country’s urbanization context and readiness. Processes of communication and engagement
Examples of integration processes between local and (including stakeholder and citizen engagement):
national strategies indicate that such integration is Existing literature often focuses on engagement
highly context-driven, as it depends on a combination processes and tools, but communication is also a key
of policies, administrative structures, and decision- cross-cutting theme.
making practices that are country-specific. In addition,
each country and local context is characterized by a Capacity-building processes: In addition to being a
level of readiness based on the current policy critical cross-cutting need across both climate and
alignment, institutional capacities, and efforts needed urban development planning, capacity building,
to change the status quo, which will determine particularly at the city level, is also relevant. For a
achievable near-to-longer-term milestones for the discussion about climate-related capacity building of
integration process. cities, see UN-Habitat (2021b), which includes examples
of policy and capacity-building support provided to
several countries as part of the Urban LEDs project.
For each pillar, the report discusses ways to advance the
integration process, building on a detailed analysis of gaps, Legal frameworks and legal tools: These can support
opportunities, and relevant integrative solutions. The report integrated planning albeit at the level of broader
also proposes a Readiness Diagnostic Framework to climate planning.
assess how prepared national- and city-level entities are to
progressively integrate the low-carbon urbanization agenda Implementation processes: This report briefly touches
into national climate and development policies and support upon implementation in relation to countries’ ability to
its implementation. In addition, to enhance evidence-based undertake integration of urban climate action into
policy processes (Pillar 3), a dedicated Guide for selecting national climate change strategies and implement such
urban diagnostic tools and models was developed for this integrated action but does not discuss implementation
report. processes in detail.
Figure 2.1: The three key pillars for integration of urban climate action into national climate change strategies
1 2 3
Integrated policy Strengthened Evidence-based policy

frameworks and finance processes and integrated
institutional structures mobilization MRV systems
32
Chapter 3. Enhancing policy frameworks and institutional structures to support integration
As core entities in the functioning of urban areas, Such coordinated processes are crucial for shaping local
subnational governments and institutions facilitate and priorities and actions on climate that conform with countries’
manage linkages between the urban development and long-term low-carbon, climate-resilient development pathways.
climate agendas across different sectors, geographies, and Further, as discussed in Chapter 2, these processes are
stakeholders, making them key enablers of climate change important to ensure that longer-term climate transitions required
mitigation (Lwasa et al. 2022). Integration of urban climate in urban areas are reflected in countries’ LTSs, which are key to
action into national climate change strategies and its identify the enabling conditions for technological or other
effective implementation calls for coordinated planning and systemic shifts required to achieve long-term climate goals.
policy development processes at both national and city They also facilitate the alignment of city-level climate action
levels. Institutional structures that support these plans with the country’s climate goals while recognizing
frameworks and processes are equally important as they opportunities specific to urban areas.
can facilitate collaboration between national and
subnational governments, strengthen local capacity, and The overall scope of integration across climate and urban
enable participation of national, subnational, and non- development planning is illustrated in Figure 3.1. National
government stakeholders. development plans serve as the policy planning backbone
for most developing countries by consolidating national
Role of coordinated policies and institutions in medium- and long-term development goals. These plans
include priorities across key socio-economic sectors
facilitating integration of urban climate action
including urban development and cross-cutting areas such
as climate change. When countries’ economy-wide, sectoral,
Robust policy processes and institutions support the and cross-cutting plans and strategies are aligned and
development, implementation, and updating of policies and coordinated, they strengthen each other and support
plans in an inclusive, participatory, coordinated manner and effective implementation. City and regional governments
consider the differing needs and opportunities at each level have in-depth knowledge of their jurisdictions and their
of government, including for accessing finance. Successful climate-related challenges, which is essential information for
execution of climate policy planning through well- developing national policies that respond to local needs.
functioning institutions ensures that cities and other Similarly, country-wide sectoral policies that are not city-
subnational stakeholders participate in the NDC and LTS specific (e.g., energy standards, transportation regulations,
process, ‘buy in’ to their commitments and implementation taxation) also influence city-level climate action and need to
strategies, and support their adoption locally. be designed considering the urbanization context.
Figure 3.1: The scope of integration of climate and development strategies considering urban systems
CLIMATE CHANGE PLANNING NATIONAL DEVELOPMENT PLANNING URBAN DEVELOPMENT PLANNING
NATIONAL LEVEL Economy-wide Plans and Strategies Sectoral Plans and Strategies
LTS Long-term development plan National Urban Strategy
2050 and beyond: Strategic economy-

Strategic vision for national
wide vision for decarbonized and
development in the long-term Strategic vision for urbanization
climate-resilient development
+
Focused on implementing
NDC Medium-term development plans measures to achieve countries'
urban development goals
Medium term and focused on Focused on implementing (Includes spatial frameworks)
implementing countries' commitments measures to achieve countries'
under the Paris Agreement development goals
URBAN LEVEL
Urban Climate Action Plans Long-term development plan
Strategic vision for decarbonized Strategic vision for development of the urban area in the long-term
Vertical integration
and climate-resilient development

at the city-level
Medium-term development plans Capital Investment Plans
Implementation of medium-term Focused on implementing measures to

priorities on climate change
achieve urban development priorities Spatial plans
Horizontal integration
34
Depending on a country’s climate governance structures and

the level of advancement of city-level climate strategies, 3.1.1 Barriers to policy framework integration
integration can be locally led, (‘bottom-up’), in which city
initiatives actively contribute to and influence national climate
action. Alternatively, it can be nationally led, (‘top-down’), in The key barriers to achieving integrated policy frameworks
which national-level policy frameworks and institutions cascade include:
down national climate objectives to the city level and empower
local actors. The extent to which a national government can Weak overall structure and functioning of urban policy
facilitate integration across different government levels and processes, such as: (i) poor vertical integration of urban
actors, either simply through information sharing or also through development planning, (ii) constraints of national
decentralizing mandates and responsibilities, may differ given strategies and policies that may hinder the advancement
varying governance contexts. The integration process often has of the urban climate agenda, and (iii) lack of requisite
elements of both top-down and bottom-up approaches. authority and mandates at the city level. Countries facing
However, today, the alignment between national climate and these barriers would typically have a weaker foundation
urban development planning is limited, with countries lacking for integration of urban and national climate agendas.
institutional mechanisms for coordination between key
ministries (OECD/UN-Habitat/UNOPS 2021). Lack of strong climate policy processes relevant for urban
climate action, such as: (i) absent or weak climate change
Effective cooperation between different government levels in mainstreaming across policymaking, (ii) absence of vertical
setting up policy processes and institutional structures is crucial coordination of climate policy processes (misalignment
for strengthening the link between national and urban climate between climate action at different government levels), and
planning. This cooperation can take whichever form is (iii) lack of awareness of national low-carbon development
appropriate, depending on country and city circumstances goals at city level.
arising from a broad range of legislative, political, social, and
economic conditions as seen from emerging practices in cities The implications of these barriers for integration between the
around the world. In some cases, coordination could consist of urban development and climate policy agendas are discussed
formal legislative integration, devolution, and/or decentralization. below.
For instance, Kenya has devolved climate change functions, with
its 2016 Climate Change Act (The Republic of Kenya 2016) Poor vertical integration of urban development
directing county governments to implement the National Climate planning
Change Action Plan (NCCAP) by mainstreaming climate actions
into their county-level development plans, such as Nairobi City
Well-functioning urban policies and institutional structures at
County Climate Action Plan 2020-2050 (Nairobi City County,
national and subnational levels provide a solid foundation for
2022). Ghana also takes a similar approach (see Chapter 6).
implementing climate action in cities, especially for aligning
Alternatively, in contexts without formal structures, cooperation
priorities, timeframes, and resources and budgets between
might simply take the form of enhanced communication
different government levels. Poor vertical integration of urban
between the relevant entities within and across different levels
development planning presents significant challenges to city
of government.
governments, particularly in leveraging sufficient resources,
financial and otherwise, to implement their policy priorities.
The subsequent sections describe how integrated policy
This in turn can affect related priorities such as climate action.
frameworks and institutions can support integration of urban
Typically, subnational governments in developing countries
climate action into national climate plans and strategies and its
are dependent on the national government for funding²¹ and
implementation, the key barriers for achieving such integration,
other kinds of support (e.g., preparation of investment-ready
and solutions to overcome these barriers.
action plans). As a result, it is important for subnational
governments (especially in small and medium cities) to align
their priorities with national priorities including on climate
3.1 Integrated policy frameworks mitigation efforts to acquire the requisite resources.
An integrated policy framework facilitates alignment of

objectives between two or more interlinked policy agendas Constraints of national strategies and policies
and coordinated planning and implementation of actions
across (i) national and subnational levels²⁰ (vertical integration) Potential for mitigation action at the city level can be largely
and (ii) relevant entities functioning within each level dependent on national (and state/provincial) policies and
(horizontal integration). Such a framework should be pursued regulations in areas that are outside the scope or mandate of
across two dimensions: (i) creating policy agendas and (ii) national urban development entities or city governments (e.g.,
scales at which these agendas are developed, implemented, energy performance standards, transportation policies,
and monitored and evaluated. taxation). Many such strategies and policies consider the need
for implementation of climate actions at the urban level.
An integrated policy framework in support of urban climate action However, they are often not co-created with cities and/or don’t
enables actors at different levels of the government to identify and translate into specific local targets and action plans that cities
implement climate-informed interventions that contribute to both can implement (see Section 1.2.1 on climate-informed urban
climate change and urban development goals at national and transformations). The absence of mandates at the city level
subnational levels. This can be achieved throughout the policy and/or mechanisms to develop such policies and regulations
process, from developing GHG emissions inventories and setting in consultation with relevant subnational entities can be a
climate targets to preparing action plans and conducting barrier to integration. For example, a country's national
monitoring, evaluation, and reporting. An integrated policy transportation strategy that was not co-created with urban
framework can also facilitate coordinated allocation of resources, representatives might prioritize scaling up bus rapid transit
ideally resulting in outcomes that maximize synergies and minimize (BRT) systems in urban areas as one of the key actions to
trade-offs between the two policy agendas. expand access to public transit.
²⁰ Note that there may be additional scales, such as ‘regional’ that are applicable in different contexts. These might represent a separate scale in its own
right in certain contexts or be considered part of ‘subnational’ in others. For simplicity only national and subnational are identified here.
²¹ The portion of national revenues allocated to subnational governments comprises an average of 74.3 percent of total public revenues globally in the form of
grants and subsidies and is the primary source of subnational revenue in most countries (Coalition for Urban Transitions 2019).
35
However, cities might lack the necessary infrastructure to Overlapping or misaligned low-carbon development
support BRT systems (e.g., well-developed urban road scenarios and priority actions at different levels, which
networks) at the scale targeted in the strategy and need could result in local plans not aligning with national climate
substantial funding and technical support to bridge this gap. goals and decarbonization scenarios but instead focusing
Instead, a strategy developed in coordination with urban on maximizing shorter-term opportunities at the local level.
stakeholders could prioritize achieving similar goals with actions
that are more technically and economically feasible such as Disconnect between national- and city-level impact
augmenting existing public bus services while progressively indicators to track progress on climate action, which poses
creating the infrastructure required for BRT deployment. significant challenges for comparing and aggregating
outcomes and limits integration.
Lack of requisite authority and mandates at the
city level Lack of awareness of national low-carbon development
goals at city level
Countries have diverse governance structures with subnational
entities having differing degrees of authority within their
jurisdictions. The level of involvement of the national government In less hierarchical governance systems or in the absence of
in subnational governance corresponds to the level of adequate communication across government levels or climate
decentralization (e.g., deconcentration, delegation, devolution of legislation that outlines the responsibilities of government
power through administrative, fiscal, and political dimensions) in entities for achieving national climate goals,²³ city officials may
the country.²² While national governments usually have the most lack awareness of national climate goals and policies, limiting
resources and access to technical and financial support (e.g., their ability to support their achievement. For instance, a
ability to leverage the national budget, access additional sources country’s national climate change strategy might have GHG
of finance, and procure technical assistance), their lack of emissions reduction targets for the waste sector that are
proximity to the local context means that subnational achieved through specific actions in urban areas. If these are not
governments are often better suited to tackle local challenges clearly communicated and cascaded down to subnational and
but may not be able to implement policies and actions if relevant
city governments, city-level climate action plans may include
mandates, functions, and resources are not decentralized.
Similarly, they may also be constrained in implementing actions in actions in the waste sector that are not aligned with national
urban sectors that are outside their mandates (e.g., power goals, hindering integrated implementation and reporting. In this
distribution, public transportation), as discussed above. Lack of scenario, a country’s NDC might identify increased composting
authority and mandate could deter cities from participating in the of waste to reduce methane emissions in urban areas, while a
development of strategies and policies in areas that are not part city might instead prioritize waste-to-energy systems to capture
of their official functions but will be implemented in their and utilize methane generated in landfills. In such instances, the
geographic jurisdiction and could therefore benefit from their national government should actively engage with local
inputs, hindering integration. governments regarding relevant information (e.g., climate-
informed targets, policies, strategies).
Lack of climate change mainstreaming across
policymaking
3.1.2 Integrative solutions
Mainstreaming of climate change considerations in policymaking
ensures that climate-related impacts are systematically assessed
across the economy (e.g., in all relevant sectors), and opportunities Possible integrative solutions for policy frameworks (Figure 3.2)
to avoid or reduce GHG emissions are maximized through and examples of their implementation in several countries and
coordinated efforts that leverage cross-sectoral synergies. Climate cities are described below (Boxes 3.1–3.5). While there is no
mainstreaming includes (i) incorporating climate considerations prescribed method for achieving an integrated policy
into national economy-wide development planning that flows framework, one or more of these solutions can be adapted to
down and translates into climate-informed implementation plans at specific country and local contexts. Some of the solutions
local levels; (ii) incorporating climate-related responsibilities into the discussed in this section are cross-cutting and can address
roles and functions of relevant government departments; (iii) barriers across both urban and climate policy agendas while
including climate-related performance indicators within all
others are specific to one of the two agendas:
departments, especially those responsible for the most GHG-
intensive sectors (e.g., energy, buildings, transportation and
mobility, land use, waste management); and (iv) climate-informed
budgetary allocations (discussed in Chapter 4). Climate change
mainstreaming is key for the effective implementation of NDCs
and LTSs, which require economy-wide efforts. In recent years,
numerous countries have made efforts to mainstream their climate
priorities (e.g., NDC targets and measures) in their development
planning efforts. However, countries with lower institutional and
technical capacities face several implementation challenges (see
example of Ghana in Chapter 6).
Lack of vertical coordination in climate policy

processes
National and subnational governments often undertake

climate action planning independently, a disconnected
approach that may lead to several shortcomings in the
planning, implementation, and monitoring of actions:
Misaligned baseline assessments in which national climate

planning efforts may not be sufficiently informed by (i) the
carbon footprint of urban areas arising from current and
projected urbanization trends and (ii) the opportunities and
challenges associated with low-carbon urbanization that
can impact the achievement of overall national and sector-
specific climate and development goals. Kolkata, India © suprabhat / Shutterstock
²² See Smoke and Cook (2022) for a high-level summary on decentralization and intergovernmental institutional landscape.
²³ Formally legislated effort-sharing in achieving national climate goals remains rare (Smoke and Cook 2022).
36
Figure 3.2: Integrative solutions for policy frameworks
BARRIERS INTEGRATIVE SOLUTIONS
Poor vertical integration

integration of urban
Mainstream climate
Urban policy process
development planning change in national

development planning
Constraints of national
strategies and policies
Integrate low-carbon growth

Lack of requisite authority and considerations in the national
mandates at the city level urban agenda
Lack of climate change

mainstreaming across
policymaking Explicitly consider urban
climate action in national
climate change strategies
Climate policy
Lack of vertical coordination Empower city governments and

in climate policy processes strengthen intergovernmental
coordination in policy areas with
overlapping mandates
Lack of awareness of national

low-carbon development goals Enhance communication between
at city level national- and city- level on climate action
Decision making around mainstreaming of low-carbon growth

Mainstream climate change in national development considerations in development planning requires tools and
planning diagnostic approaches that can help policymakers assess
associated risks and opportunities (e.g., GHG emissions increase
resulting from economic growth, distributional impacts of
NDCs and LTSs should fully reflect countries’ medium- and
measures to reduce GHG emissions). Barriers and solutions
long-term development goals to facilitate their successful
related to low-carbon urbanization data and diagnostics are at
implementation. In turn, systematically incorporating climate
the core of Pillar 3 and discussed in Chapter 5.
change targets and actions identified in NDCs and LTSs in
national medium- and long-term development plans
(climate change mainstreaming) is crucial for achieving
countries’ climate change commitments while also
advancing their development priorities. Mainstreaming Box 3.1: Climate change mainstreaming in national
climate change into economy-wide development planning development planning—Bangladesh
can help overcome sectoral and institutional silos, avoid The Bangladesh Planning Commission undertakes
policy conflicts, and reduce potential trade-offs between development planning through five-year national
development goals and low-carbon growth efforts that development plans (NDPs). These economy-wide
might arise from implementing the two agendas separately. plans are complemented by sectoral development
As development plans inform sectoral plans and often have plans issued by ministries. The country first
well-developed implementation mechanisms at subnational articulated its vision on climate change under this
levels (e.g., subnational entities may be required to create framework in 2009 through the Bangladesh Climate
development plans for their own jurisdictions that reflect Change Strategy and Action Plan BCCSAP, which
national development priorities), they are an effective identified climate change as a key development issue
vehicle for delivering vertically and horizontally integrated and focused on pro-poor climate risk management.
climate action (adapted from Mogelgaard et al. 2018).
Additionally, climate change mainstreaming ensures that Starting with the fifth five-year plan, each successive
NDP has progressively mainstreamed climate change
subsequent NDC and LTS updates factor in countries’
into its vision and priorities. Bangladesh’s eighth five-
progress on development goals along with new year plan (July 2020-June 2025) is aligned with the
opportunities and trade-offs that are relevant for revising country’s NDC commitments and supports a
climate targets and implementing them. governance structure outlined in the “Roadmap and
Action Plan for Implementing Bangladesh NDC.” The
Given the numerous cross-sectoral interdependencies of plan identifies “improving understanding of climate
the low-carbon urbanization agenda, mainstreaming climate change of local governments” as one of the activities to
change in national development planning can be a key be undertaken to address climate change and
enabler of effective coordination between different levels of emphasizes the need for identifying localized solutions.
government (vertical) and across different sectoral entities Source: Government of the People’s Republic of Bangladesh
(horizontal) required for undertaking integrated urban 2020; World Bank Group 2022a; Fatemi et al. 2020.
climate action.
37
Integrate low-carbon growth considerations in the

national urban agenda
Box 3.2: Advancing urban development
Systematic consideration of low-carbon urbanization consistent with national development and
opportunities in the national urban agenda can harness the climate priorities—South Africa
potential of urban areas to reduce GHG emissions through
both sector-specific pathways and spatial planning processes South Africa’s National Development Plan 2030 is
and strengthen horizontal coordination between climate and the country’s long-term development plan that
urban development policy agendas. It can also augment guides all policy and planning in the country until
vertical coordination to cascade down implementation efforts 2030 (Republic of South Africa 2014). Chapter 5 of
to city level, providing cities with a foundation to build on its NDP focuses on transitioning to an
through their local climate action plans. environmentally sustainable, climate-resilient, low-
carbon economy and a just society. Under this
Enhance vertical integration and integrate urban objective, the plan emphasizes the need to build
development and climate policy agendas through a sustainable communities by progressively
National Urban Policy devolving responsibilities to local governments.²⁵
In this context, it mentions that effective planning
can promote urban densification and reduce the
With urbanization emerging as a critical driver of economic
environmental footprint associated with delivering
growth in developing countries, national governments are
services such as waste management, electricity,
increasingly recognizing the role of urban areas in attaining
water and sanitation, and public transportation. It
long-term low-carbon development goals. In recent years, urban
also indicates the need to reduce the carbon
development has become an important focus area for national
footprint and economic costs of transportation for
governments, both to seize opportunities offered by urban
the urban poor by expanding access to public
growth but also to address challenges arising from an
transit and optimizing travel distances through
expanding urban population (UN-Habitat 2014). As discussed in
spatial planning approaches. The NDP is
Chapter 1, fragmented and unplanned urbanization in
incorporated into the Integrated Urban
developing countries underscores the need for coherent urban
Development Framework (IUDF), which was
policies that reconcile national development and climate goals
published by South Africa’s National Department
with service delivery gaps and infrastructure needs in urban
of Co-operative Governance and Traditional
areas in an inclusive manner. For the past decade, UN Habitat
Affairs in 2016 (Republic of South Africa 2016) and
and other international initiatives have supported countries in
is the government’s policy to guide growth and
articulating their urban development vision in a national urban
management of urban areas. The IUDF aims for
policy (NUP)²⁴ through a collaborative process between the
spatial transformation in South African cities and
national government and cities (UN Habitat 2014). A NUP can
towns by steering urban growth toward a
provide an overarching framework for addressing urban
compact, connected, and coordinated form, as
challenges while meeting development priorities and
envisioned by the NDP. Cape Town’s Five-Year
considering spatial and institutional dimensions. It can also
Integrated Development Plan (2022-2027) (City of
facilitate sharing of responsibilities and urbanization dividends
Cape Town 2022) sets out a vision for a more
between national and subnational governments (UN Habitat
spatially integrated and inclusive city and is well
2014). As such, a NUP can be an effective instrument for
aligned with both the NDP and the IUDF.
achieving a vertically integrated urban development policy
agenda (Coalition for Urban Transitions, 2019). Further, since
development planning is a well-established area in most
countries, embedding urban development priorities in national Explicitly consider urban climate action in national
development planning processes through NUPs helps leverage
climate change strategies
their institutional frameworks and funding mechanisms to
facilitate their implementation.
Explicit inclusion of climate priorities and targets for urban
NUPs can be an effective platform for integrating urban areas in NDCs and LTSs is crucial to create the enabling
development and climate policy agendas at national level environment for realizing their mitigation potential. Similarly,
and support their coordinated implementation at city level. NDC implementation plans and LTS roadmaps should
Updating NUPs to include climate mitigation action from include specific measures to be undertaken in urban areas
countries’ NDCs or LTSs that is relevant for urban areas can and be reflected in financing strategies. This can take the
provide a strong foundation for aligning urban mitigation form of a published climate change implementation plan
action with national climate goals. The case of South Africa supported by a framework for measuring, planning, and
provides insights on how climate change-related priorities in achieving GHG emissions reduction. Further, where
long-term national development plans are reflected in possible, anchoring these goals and targets in laws and
national urban development policies and translated into city- regulations makes them legally binding and can help
level priorities (Box 3.2.). NUPs can also provide valuable enforce their implementation at city level. In the absence of
inputs for integrating urbanization priorities into the LTS systematic integration of urban climate action in national
development process, by helping capture significant causes climate plans and strategies, cities’ climate action plans
of GHG emissions associated with rapid urbanization (as should at least be communicated to the national level to
discussed in Chapter 1). facilitate their reflection in NDC goals and targets.
²⁴ UN Habitat (2014) defines NUP as “a coherent set of decisions through a deliberate government-led process of coordinating and rallying various
actors towards a common vision and goal that will promote more transformative, productive, inclusive, and resilient urban development for the long
term.”
²⁵ In 2019, South Africa’s National Planning Commission organized consultations with civil society, business, government, labor, communities, and
experts to identify pathways to achieve this vision. One of the key recommendations included an increased role for local actors in the governance of
the just energy transition in South Africa (Urban LEDS 2020). The role of subnational governments is also clearly recognized in South Africa’s LTS
(Republic of South Africa 2020), which recognizes that in addition to the training and capacity building that will be required to support the transition at
national level, infrastructure and skills will need to be developed at subnational level. It also acknowledges that many of the subnational government
structures are currently dysfunctional and lack capacity to support implementation of, and manage funding for, the actions required to support the low-
carbon transition.
38
Undertake coordinated planning and implementation of

Box 3.3: Alignment between mitigation goals measures in sectors and areas that have overlapping
in Ghana’s NDC with actions in Accra’s Climate mandates across different levels of government (e.g., urban
transportation, building energy performance).
Action Plan
Assess climate mitigation-related risks and potential in their
The Accra Climate Action Plan (CAP) 2020-2025
jurisdictions, given their proximity to GHG emissions drivers
prepared by the Accra Metropolitan Assembly (AMA)
and urban stakeholders.
is Ghana’s first subnational climate plan that devolves
national climate change targets and ambitions to the
To empower city governments, national governments can (i)
metropolitan assembly level. The implementation of
delegate climate-related functions to them to advance climate
CAP will directly contribute to the achievement of
action in areas over which they have authority, (ii) realign
Ghana’s NDC targets. Ghana’s NDC identifies
responsibilities between national and subnational entities by
measures such as adopting alternative urban solid
decentralizing certain functions, and (iii) clarify roles and
waste management and promotion of energy
responsibilities of different actors in implementing shared
efficiency in homes and industry to achieve its GHG
functions. For areas with overlapping mandates, it is imperative
emissions reduction targets. In line with the NDC goal
to take stock of existing mechanisms for intergovernmental
and the country’s plan to tackle short-lived climate
coordination and identify any needs for new arrangements,
pollutants, Ghana has set numerous national targets
especially for long-term climate planning and implementation
for the solid waste sector by 2030 including doubling
(adapted from Smoke and Cook 2022).
composting capacity to 190,000 tons/year and
capturing 65 percent of landfill gas. Accra’s CAP
prioritizes the solid waste and wastewater sector as
one of five key areas for climate action. Within this
Box 3.4: Assigning key responsibilities for climate
area, (i) diverting organic waste from landfills and
action to lower levels of government in Kenya
doubling composting capacity and (ii) developing a
new engineered sanitary landfill with gas capture have The Nairobi City Climate Action Plan 2020–2050
been identified as actions that will directly contribute to says: “The Constitution of Kenya assigns 14 separate
national solid waste targets and NDC goals. Similarly, responsibilities to Counties, which include but are
Ghana is seeking to achieve energy efficiency not limited to health, transport, control of air and
improvements of 20 percent in industrial facilities by noise pollution, trade development and regulation,
2030. In line with this goal, CAP seeks to introduce education, planning (including housing, electricity,
voluntary targets and incentives for energy efficiency and gas), water and sanitation services, and refuse
in industrial facilities operating in Accra. Future collection. Within this context, Counties are
updates to CAP will be synchronized with the five-year mandated to plan and implement their climate
cycle of Ghana’s NDC updates. mitigation and adaptation actions and set up the
necessary infrastructure to drive their agendas on
Source: Accra Metropolitan Assembly, 2020; Government
of Ghana, 2021c. climate change matters through policies, laws, and
strategies which are all developed in the city and are
ratified by its law-making arm. In addition to these
locally devolved powers, County Governments are
responsible for implementing policies that are set
Empower city governments and strengthen primarily at national level, including strategic
intergovernmental coordination in policy areas education, health, and infrastructure initiatives.’’
with overlapping mandates
Source: Nairobi City County 2022.
The functions and mandates for planning and implementing

climate action in urban areas are shared between the
national government and subnational governments and
entities (e.g., state or provincial government, city
Enhance communication on climate action between
government, regional transportation authority). City national and city levels
governments often have primary authority over such
functions as land use planning, waste management, and If there are strong policy or institutional barriers to integrating
urban design regulations. These areas are expected to urban climate action into national climate change planning,
deliver about one-third of the urban mitigation potential by gradual improvement in information sharing between city and
2050 after excluding electricity decarbonization (Coalition national levels can be an initial step. Establishing
for Urban Transitions 2019). The remaining major portion of communication mechanisms between the two levels can
urban mitigation is largely under the regulatory authority of facilitate exchange of information, constituting an initial phase in
higher-level entities such as national and state the longer-term coordination/harmonization effort on key
governments (e.g., energy efficiency standards for aspects of the climate policy process (e.g., target setting, policy
appliances, GHG emissions standards for vehicles, energy development, approaches to access financing, using consistent
performance requirements in building codes). Empowering reporting indicators and timelines). This would enable cities’
city governments and improving intergovernmental climate action efforts and targets to be informed by climate
coordination can enable city governments to: goals reflected in national climate plans and/or sectoral
strategies. Additionally, if a country has climate-relevant M&E or
Integrate climate considerations in functions within their MRV systems, cities could report progress on their mitigation
administrative mandate (e.g., land-use planning, solid efforts against these indicators, facilitating data aggregation and
waste management). comparison of outcomes (discussed in detail in Chapter 5).
Finally, such mechanisms could foster the creation of an
Fulfill their responsibilities for implementing and enforcing enabling environment at national level over time in the form of
several economy-wide measures (e.g., enforcement of relevant legislative and regulatory frameworks that form a
emissions standards for vehicles, emissions trading schemes). foundation for progressively pursuing the integration process.
39
Box 3.5: Aligning urban climate plans to national

strategies—Addis Ababa, Ethiopia
The Addis Ababa Climate Action Plan 2021–2025

outlines a long-term vision to make the city carbon-
neutral and climate-resilient. The plan has identified
specific mitigation actions along with targets for the
years 2030, 2040, and 2050 to deliver its carbon-
neutrality goal. These were informed by a BAU
scenario and three emissions reduction scenarios
developed for Addis Ababa. The first of these was
the Existing & Planned Action Scenario based on
current policies and plans at national and city levels
such as Ethiopia’s NDC and Climate Resilient Green
Economy (CRGE) Strategy (Federal Democratic
Republic of Ethiopia 2012)*. While this scenario was Bangkok, Thailand © Alpha_7D / Shutterstock
found to reduce future emissions compared to BAU,
it fell short of Addis Ababa’s carbon-neutrality goals, There are no optimal organizational structures that are conducive
requiring the city to develop more ambitious to integrated urban climate action and establishing entirely new
scenarios and identify actions that go further than the (formal) structures is often challenging or unrealistic. Therefore, the
national strategies. Further, the plan recognizes the most feasible approach could be to embed climate change-specific
lack of coordination between national- and city-level functions within existing institutional structures, while promoting a
entities on climate action and stipulates that the shared understanding of objectives and available resources
Addis Ababa City Administration takes a leading role
through mechanisms such as a climate change coordinating
in creating linkages for other Ethiopian cities to
committee to oversee climate efforts across government entities.
contribute to national efforts in implementing the
NDC and CRGE Strategy. The plan's MRV framework
is intended to be aligned with the national climate
action planning process, enabling vertical integration 3.2.1 Barriers to integrated institutional structures
between the city and national government.
In contexts with limited climate change mainstreaming across
*The CRGE Strategy (2012) is the national guiding
framework for Ethiopia to achieve its vision of becoming a policy agendas, it can be difficult to ensure that climate change
low-carbon, middle-income economy by 2025 through is given equal significance to other development imperatives
green economic growth. This strategy aims to enable the within institutional structures. This often results in a lack of clarity
country to strengthen its capacity to adapt to the effects of on climate change-related functions, with roles and
climate change through a sustainable development
approach. The CRGE Strategy has been mainstreamed into responsibilities on climate being informally distributed across
the Growth and Transformation Plan (GTP II) (Federal government entities.
Democratic Republic of Ethiopia 2016), which is a five-year
development plan that aims to drive the country’s ambition Lack of clear institutional structures, roles, and
to achieve middle-income status by 2025 in a climate-
resilient economy. responsibilities
Source: Addis Ababa City Plan and Development Absence of formal, permanent, and predictable institutional
Commission 2017.
structures and functions on climate makes coordination of
climate action across different government entities challenging
and disincentivizes collaboration. Additionally, lack of clearly
defined roles and responsibilities on climate hinders
3.2 Integrated institutional structures governments’ ability to secure sustained funding and other
resources to recruit and retain personnel with technical expertise
to gradually build up in-house capacity on climate change.
The process of integration should encompass a clear allocation
of roles for executing and implementing climate action to Lack of knowledge, expertise, resources, and
specific administrative functions within government institutions. technical capacity
To ensure that these functions are executed most efficiently
and the personnel undertaking them are empowered to carry Since climate change is a relatively new priority for developing
out climate-related responsibilities, dedicated institutional countries, government entities often have limited experience in
structures need to be established. It is equally important to planning and implementing climate action. As discussed in
create mechanisms that facilitate collaboration between Chapter 1, cities in LICs and LMICs typically lack expertise on
personnel carrying out inter-linked functions or work in areas climate-related functions. Without adequate technical
with overlapping mandates across different government levels. capacities, it can be challenging to develop and share
knowledge, expertise, and resources to pursue the climate
Strengthening coordination and promoting collaboration change agenda. To fill these gaps, governments often procure
between entities can also help overcome resource and external support for fulfilling climate-related tasks (e.g.,
capacity gaps, especially at city level. For example, poor developing GHG inventories, modelling GHG emissions growth,
integration between different levels of government, with developing action plans and investment-ready projects) rather
climate-related processes being carried out in isolation, than augmenting internal resources and capacity.
prevents sharing of knowledge and technical expertise.
Often, a higher level of government or larger cities might
have the technical expertise to support city governments with 3.2.2 Integrative solutions
lower capacities on such matters as developing GHG
emissions inventories and identifying priority interventions
and performance indicators and can collaborate to overcome The integrative solutions for institutional structures are illustrated
these capacity gaps. in Figure 3.3 and discussed below.
40
Establish organizational structures and functions on

climate change within each government level
It also enabled new partnerships with external
actors such as state enterprises and private
Adequate human resources, their organization, and
entities, which the city would need to effectively
systematic engagement are key for strengthening vertical
implement the plan (City of Cape Town 2021).
and horizontal coordination across policy processes to plan
and implement integrated urban climate action. To ensure
The City of Cape Town is also part of the
that different levels of government can perform climate-
provincial-level climate change response forum
related functions and meet targets, organizational
and work group led by the Western Cape
structures with formally defined roles and responsibilities
Government, which facilitates collaboration and
should be established at each level. Creating a sufficiently
learning between local governments in the
staffed and funded body with a clear role and mandate on
province. The forum also generates information
climate at subnational level can send an important political
that the Western Cape Government uses to feed
signal to the national government about the importance of
into national processes.
this policy agenda. The creation of such a body also
requires establishing processes and systems, which can be
aligned with processes and systems at other government
levels, facilitating integration. Depending on the Promote collaboration and sharing of knowledge,
organizational structures of institutions, existing roles and tools, and resources
responsibilities could be modified to carry out climate-
related functions instead of creating new climate-focused
structures. This could mean formalizing climate-related Tools and resources to mainstream climate change in policy
tasks, establishing dedicated reporting chains of command, processes or disseminate knowledge and build capacity are a
and introducing accountability. key component that can be coordinated and shared across
government levels. This can include tools that support
technical processes such as modelling and scenario-building
Promote stakeholder engagement approaches to develop low-carbon development pathways,
identification and assessment of mitigation interventions, and
Integrated urban climate action requires involving procedures such as stakeholder engagement or information
stakeholders at all levels in the planning and decision- dissemination (e.g., knowledge-sharing platforms). Sharing
making process so that measures and interventions are tools and resources can support integration of policies and
both consistent with national priorities and locally plans through consistent structures, approaches, or
appropriate, with buy-in from the communities where they information; promote efficient knowledge exchange; and
will occur (Box 3.6). A participatory and collaborative streamline reporting efforts (see Chapter 5). Personnel and
approach is also essential for addressing cross-cutting technical expertise can also be shared across administrative
issues that don’t fit within individual sector or agency functions and structures. For example, the responsibility for
mandates or that leverage cross-sectoral synergies, such compiling GHG inventories and reporting the impact of climate
as integrated land-use and transportation planning. Multi- interventions can rest with a specific administrative function,
level stakeholder engagement is therefore crucial for but the same personnel can provide support to other levels of
attaining strategic alignment between city-level planning government or cities to perform the same function, either
and national climate change targets and for achieving directly or through quality assurance and guidance (Box 3.7).
coordinated policy processes across interlinked sectors.
Establishing mechanisms that facilitate stakeholder

engagement is a necessary step to integrate institutional
Box 3.7: Leveraging knowledge on climate
structures in countries. To this end, national governments
can facilitate participation of city governments in the action reporting through collaboration
development of NDCs or LTSs by setting up engagement
platforms, organizing technical workshops, or establishing Various levels of government have different
working committees dedicated to urban climate risks and obligations for reporting climate action that can be
investment needs. leveraged to advance climate change mitigation and
adaptation. National governments that are party to
UNFCCC have explicit reporting obligations. In
contrast, cities might choose to be part of an
organization such as C40, a global network of
mayors that works to solve the climate crisis, or
Box 3.6: Collaboration and stakeholder GCoM (Global Covenant of Mayors for Climate &
engagement on climate at the local level— Energy), the largest global alliance for city climate
Cape Town, South Africa leadership, which includes over 12,500 cities and
local governments committed to combatting climate
change. Or they might choose to report information
The City of Cape Town recognized the need for on climate action to the global Carbon Disclosure
undertaking broad stakeholder engagement and Project (CDP). For example, the City of Cape Town
consultation as part of its planning process to has a well-established, sector-based GHG inventory,
develop both its new Climate Change Strategy and which is updated annually and reported to CDP.
Climate Change Action Plan (City of Cape Town There is thus a vast pool of knowledge, expertise,
2021). Between 2018 and 2020, the city involved resources, and technical capacity available to city
stakeholders through public consultations and civil governments. Cities with stronger capacities can
society engagements, focus groups, expert more readily leverage available tools and resources
while facilitating access and sharing experiences to
interviews, and technical workshops. This process
help cities with weaker capacities. This can take the
was seen as crucial for securing widespread form of a collaboration and knowledge-sharing
stakeholder support and buy-in and gathering data platform, where entities gather to share experiences
and information to inform climate actions. and lessons learned.
41
Figure 3.3: Integrative solutions for institutional structures
Lack of clear institutional Establish organizational

structures, roles, and structures and functions on
climate change within each
responsibilities government level
Promote stakeholder
engagement
Lack of knowledge,
expertise, resources, and
technical capacity
Promote collaboration and
sharing of knowledge, tools,
and resources
Cape Town, South Africa © World Bank
42
Chapter 4. Strengthening finance mobilization at the local level for climate action
With cities assuming a prominent role in countries’ transition to

low-carbon development pathways, enhancing access to Private sector: In recent years, cities have made
sufficient financial resources both at national and city levels is concerted efforts to secure private sector investment
crucial for realizing climate goals in urban areas. There is also an in climate projects by using mechanisms such as PPPs
urgent need to channel more targeted financing from national and special-purpose vehicles.
and international sources to support low-carbon urban
development, especially in rapidly urbanizing countries (World Source: CCFLA 2021
Bank and CCFLA 2021). Evidence suggests that climate finance
delivered at the local level produces effective, efficient, and long-
term results, maximizing the impact of each dollar spent,
including delivering mitigation, resilience, and development
4.1.1 Financial capacity
benefits (Soanes et al. 2017, CCFLA 2021). However, local
governments face significant challenges in accessing domestic
and international financing and unlocking private capital because
of factors such as budget constraints, high levels of debt, and Financial capacity refers to cities’ ability to mobilize
low creditworthiness. These challenges are often amplified by financing for climate-related investments from their OSR or
institutional and political barriers that hinder the ability of cities to by raising capital on financial markets. Cities’ degree of
mobilize financing to close the investment gap and advance the financial autonomy (e.g., level of mandate or authority to
climate transition (CCFLA 2021; World Bank and CCFLA 2021). generate OSR, spend their own funds, or issue debt-based
financing instruments such as municipal bonds) is a key
Challenges and opportunities related to financing urban determinant of their financial capacity. Their ability to
climate action have been addressed in detail in several borrow capital and use debt-based instruments depends on
recent publications such as CCFLA (2021) and CPI (2021), their creditworthiness, borrowing track record, financial
which include a comprehensive discussion of policy, expertise, and technical skills to identify, develop, and
financial, and technical barriers and solutions for effectively implement robust investment-ready projects.
subnational actors to access climate finance at scale. This Cities with a greater degree of financial autonomy coupled
report, therefore, provides a brief overview of the key with adequate borrowing abilities can attract private capital
prerequisites and barriers for cities to access climate and mobilize financing from domestic and international
finance (Section 4.1) and focuses on how integration of sources. Limited financial capacity is therefore an important
low-carbon urbanization into NDC and LTS policy barrier to access financing for urban climate action.
processes can help mobilize financial flows for urban
mitigation action (Section 4.2).
4.1.2 Technical capacity
Limited capacity at city level is a
4.1 barrier for mobilizing climate finance Cities need to be able to design, manage, and implement
climate-related investments. Their degree of dependence
Cities can receive climate finance from a variety of sources on the national government’s institutional and technical
(Box 4.1). Accessing these funding sources requires city resources for undertaking core functions such as spatial
governments to have certain financial and technical planning and service provision can be an indicator of their
capabilities and a conducive policy environment, especially technical capacity for climate-related functions. Skillsets
when funds are channeled through national governments. associated with developing a robust pipeline of investments
and preparing, managing, and implementing investment
programs and specific projects (e.g., identifying investment
needs, appraising proposals, preparing contracts, managing
services, undertaking stakeholder engagement, monitoring
Box 4.1: Main sources of climate finance
and reporting performance) are common to both urban and
available to cities
climate policy areas. In addition, climate-specific technical
expertise includes:
International sources: Grants and credit from
international climate funds and development finance
Capacity to design and implement GHG emissions-
institutions (e.g., Green Climate Fund, Climate
reduction policies and investments that are appropriate
Investment Funds, Multilateral Development Banks
for local conditions and capabilities (e.g., developing
[MDBs]). International funds are usually channeled
GHG inventories, evaluating and monitoring emissions
through the national government. In the past few
impact of interventions, developing business models for
years, numerous MDBs have launched initiatives to
low-carbon projects).
provide funding for urban climate action (e.g., the
European Bank for Reconstruction and Development’s
Understanding requirements and eligibility criteria of
EBRD Green Cities).
international climate funds and development partners to
prepare compelling funding proposals and setting up
Intergovernmental transfers from the national budget
robust implementation entities.
or state/provincial budgets.
MRV skillsets such as data collection, aggregation,
Own-source revenue: Revenue collected by cities
analysis, and selecting and reporting on appropriate
from property and business taxes, charges (e.g.,
performance indicators.
congestion pricing, parking), user fees for services, fuel
levies and road tolls, fines, and land value capture.
Cities in LICs and LMICs often face significant challenges in
meeting these prerequisites because of limited financial
Borrowing instruments such as debt, balance sheet
and technical capacities. In small and medium cities, this
financing, municipal bonds, and credit enhancement
gap is often compounded by numerous constraints in
mechanisms.
fulfilling core urban development-related functions such as
urban service delivery and financial management.
44
Some of the integrative solutions discussed under Pillar 1 (Chapter Finally, limited policy integration can also impede the
3) can also be deployed to address capacity-related barriers to transfer of resources, financial or otherwise, from higher
mobilizing finance at city level. For instance, the national levels of government required by city governments to meet
government can empower city governments with mandates to capacity-related prerequisites.
bolster their financial autonomy, while city governments can
collaborate with entities with greater capacities to overcome their
technical capacity constraints. Integration of urban climate action
4.2 into NDCs and LTSs can boost finance
mobilization
4.1.3 Policy integration and coordination
Since national governments in developing countries are the

A recent assessment of urban climate finance flows by CCFLA largest finance providers for urban climate action,
(2021) highlights the vastly insufficient amounts of urban climate developing robust and ambitious national climate policies
finance invested in developing countries, including South Asia and strategies (e.g., NDCs, LTSs) that integrate low-carbon
and SSA. Of the total estimated urban climate finance in 2017- urban development priorities are crucial, as they are a key
2018, the largest portion was invested in developed economies signal of the government’s sustained commitment to these
and China. Moreover, while the origins of finance providers priorities. Systematic inclusion of city-specific targets in
remain opaque, urban climate finance from emerging markets these strategies can enable cities to gain sustained support
was committed mainly domestically (97 percent). This assessment from the national government for undertaking climate
also found that national governments financing domestic projects action. Such integration can ensure policy predictability and
were the largest finance providers overall (CCFLA 2021). This reliable financial support by making funding flows less
analysis highlights that cities in developing countries primarily sensitive to changes in the country’s political landscape.
depend on the national government for financing climate action.
Clearly reflecting urban climate action in NDC funding needs
Given their heavy reliance on intergovernmental transfers from assessments, investment plans, and subsequent finance
the national budget for both urban development and climate mobilization strategies can facilitate the allocation of financial
projects, the volume and flow of such transfers can affect the resources at city level to support actions that will deliver the
greatest benefits. Considering urbanization-related challenges
scope of climate-related interventions in cities in LICs and and opportunities in LTS processes can help embed both
LMICs. As a result, regular and consistent funding from the near- and long-term climate investment needs at city level into
national budget, underpinned by vertically integrated planning overall green transition priorities and translate them into
and policy processes, is a key enabler for these cities to specific implementation plans and financing models. In
implement climate-related projects (and attract international and countries where climate change is mainstreamed into national
private finance). Lack of climate change mainstreaming or development planning (discussed in Section 3.1.2), such
limited policy integration and coordination between national and integration would result in funding allocations to cities from the
subnational governments on urban climate action can constrain national budget for climate action, bringing dependability to
funding flows for climate-related projects in urban areas (e.g., intergovernmental transfers.
intergovernmental fiscal transfers targeted at urban spending
categories lack dedicated funding allocations for climate-related
interventions). In such instances, the volume of funds flowing to 4.2.1 Integrative solutions
cities may depend on the national government’s priorities and
other competing urban service provision needs, deprioritizing
funding for climate action. This could also undermine investor Integrative solutions for finance mobilization illustrated in
confidence and be compounded by limited mandates and Figure 4.1 build on solutions related to policy frameworks
abilities of city governments to raise revenues both from their under Pillar 1 (e.g., mainstreaming climate change in national
own sources (e.g., taxes, fees) or debt-based instruments. development planning, empowering city governments,
strengthening intergovernmental coordination). In addition,
Moreover, lack of alignment between city- and national-level
countries that are in the early stages of mainstreaming
climate priorities can be an additional barrier for multi-year low- climate change in their national development planning (e.g.,
carbon infrastructure projects that need to overcome the conflict have limited integrated policy frameworks) or are in the
between their long lead times and shorter government process of aligning the climate and urban development
budgeting cycles, which can be affected by changes in policy agendas can use the approaches outlined below to
administrations or shifting political priorities. overcome barriers to mobilizing climate finance.
Figure 4.1: Integrative solutions for finance mobilization
45
Enhance communication on financing needs for Mainstreaming climate change in national development
urban climate action planning and budgeting is an integrative solution that could
enable regular and consistent funding flows for urban
Establishing a framework under which cities and the national climate action in the long-term. However, LICs and LMICs
government can coordinate on climate change policies can need to lay the initial groundwork to allow systematic
help align city-level climate efforts with national climate inclusion of climate considerations in their budgeting
planning initiatives. This could involve collaboration on the process. Instituting climate budget tagging (CBT) can serve
development, update, and implementation of NDCs/LTSs. as a useful tracking mechanism and be the first step in this
Within this collaborative framework, cities can provide direction. CBT is a tool for identifying, classifying, weighting,
information on existing and planned urban climate projects and marking climate-relevant expenditures in a
and associated financing needs to the national departments government’s budget system, enabling the estimation,
responsible for the preparation and implementation of monitoring, and tracking of those expenditures. Such
NDCs/LTSs so they can be considered for inclusion in tagging of climate-related expenditures can enable national
investment plans. Cities can strengthen their negotiating and local governments to take stock of spending on climate,
position and value proposition to secure funds for climate identify funding gaps in implementing their climate change
action by coordinating their actions and approaching the priorities and plans, and determine the need for mobilizing
national government jointly. Establishing a climate-focused additional resources (UNDP 2019). Therefore, CBT can
network of city representatives can help this process and underscore cities’ roles in delivering climate action.
facilitate discussions with the national government. This
would allow smaller cities to become part of the dialogue and There are several analytical tools that support governmental
benefit from potential funding allocations that would not be budgeting processes, such as the Public Expenditure and
possible if they acted on their own. Further, this would enable Financial Accountability (PEFA) Program²⁶ (Box 4.2) and the
cities with strong financial capacities to make a case for UNDP (2015) Climate Public Expenditures and Institutional
greater authority to mobilize financing for planned climate- Review (CPEIR).²⁷ While these typically target the national level,
focused actions. Lastly, by strengthening coordination with city-level adaptations of these methodologies are currently being
the national government, cities could seek to streamline developed to support urban budgeting processes.
approval processes for urban projects that require national
approval (e.g., large infrastructure projects), addressing
concerns about securing all approvals, which may be a barrier
to investor support (CCFLA 2021). Box 4.2: Climate responsive public financial
management framework
Facilitate cities’ access to domestic and international
climate finance The PEFA framework for assessing climate
responsive public financial management (PEFA
Climate) is a set of supplementary indicators to the
National governments can empower cities to access climate
PEFA framework to collect information on the extent
finance sources that are beyond their reach through
to which a country’s public financial management
targeted support and dedicated initiatives. International
(PFM) system is ready to support the
climate funds and development finance institutions have
implementation of national climate change policies.
specific eligibility criteria and processes for accessing
The indicators aim to capture current practices in
financing that could be too onerous for individual cities
mainstreaming climate change in PFM by tracking
(especially smaller ones) to meet. The national government
aspects such as budget alignment with climate
could create a program/initiative dedicated to aggregated
change strategies, climate-responsive public
city-level climate action that is consistent with the
investment management, climate-related liabilities,
requirements of international funds and institutions and
and climate-responsive procurement. Many of these
strategically aligned with national- and city-level priorities on
indicators include questions on activities at
climate. This aggregated approach can enable cities to
subnational level, allowing the assessment of
access funding for climate-related interventions from such
consistency and integration across government
sources at a lower transaction cost. Similarly, the national
levels. Along with checking the applicability to, and
government can facilitate cities’ access to domestic funding
interaction with, subnational governments, the PEFA
sources such as national development banks and private
assessment includes a module on a climate-
investors by deploying innovative financing instruments for
responsive fiscal decentralization framework, which
de-risking (e.g., guarantee facility).
assesses climate-responsive fiscal transfers and
PFM arrangements applied by subnational
Pursue climate-informed budgeting governments. Analysis undertaken in this module
and supported by the wider findings of the PEFA
Earmarking governmental transfers (e.g., conditional transfers) Climate Framework can help national governments
for climate-related actions allows cities to have reliable funding develop more integrated and climate-aligned public
flows to support their climate investments. Alternatively, funding systems at national and subnational levels.
national governments can include climate-related performance
Source: PEFA 2020 and UNDP 2015.
criteria for cities in their budgetary allocations to incentivize
urban climate action.
²⁶ PEFA assessments can be carried out both on national and subnational (e.g., city or municipality) levels. As of 2022, 267 national and 166 subnational PEFA
assessments have been completed, including 10 countries in South Asia and 47 countries in SSA.
²⁷ CPEIR is a diagnostic tool used by national governments to understand how well climate change priorities and concerns are integrated within a country’s
national and subnational budget allocations and expenditure processes. CPEIR methodology (UNDP 2015) allows analysis of both national- and city-level
policy objectives and how well their expenditures are aligned with those objectives. It can highlight inconsistencies in climate-focused expenditures allocated
to specific sectors, regions, or cities. At city level, CPEIR results can demonstrate how much climate change-aligned funding they receive, which sectors this
funding goes to, and how well these patterns are aligned with national and subnational climate change targets, highlighting sectoral and geographical
alignment.
46
Chapter 5: Urban diagnostics and integrated MRV systems to underpin integration
Assessing the impact of urbanization trends and urban Interventions in urban areas that have a direct GHG emissions
policies on current and future GHG emissions and impact include (i) investments in transportation infrastructure and
evaluating the expected outcomes of urban climate housing development, sanitation, waste management, and green
mitigation interventions require robust data (both national infrastructure and (ii) policies and regulations affecting land-use,
and city level) and sound diagnostic approaches. Country- housing, and transportation sectors, consumer choices, and
specific analytics can enhance policymakers’ understanding energy demand. Socio-economic implications of low-carbon
of risks and opportunities associated with urban climate urban growth efforts on aspects such as employment, public
mitigation and help integrate low-carbon urban growth health, or urban equality are also important considerations for
considerations into national climate and development decision making since climate mitigation actions do not happen in
planning processes. High-quality, transparent, and a vacuum and have social and economic impacts on households
consistent data enables city governments to evaluate the and firms. It is therefore important to recognize and quantify the
impacts of their climate interventions and effectively potential trade-offs and synergies with other priorities (e.g.,
communicate their costs and benefits to national poverty reduction, public health, disaster risk management) that
governments, paving the way for their inclusion in national might be triggered by climate mitigation action in urban areas.
climate change strategies such as NDCs and LTSs. In
addition to supporting decision making on urban climate Given the complex interactions between urban sectors and
action, data and diagnostics are also critical elements for actors along with diverging policy and investment priorities,
systematically tracking and reporting impacts of low-carbon national and urban decision makers and regulators need to
urban development efforts and associated climate finance strengthen their analytical abilities and understanding of low-
flows at different government levels. With cities in LICs and carbon urban development pathways and the levers to achieve
LMICs taking a prominent role in their low-carbon transition, them. This is particularly important since urban climate mitigation
there is an urgent need to improve their data and diagnostic action is highly synergistic with other urban development
capabilities. priorities and generates benefits beyond GHG emissions
avoidance/reduction, such as improving resilience of households,
This chapter discusses the role of data-driven decision making reducing traffic congestion and pollution, and enhancing the
and impact tracking in enabling integration of urban climate action quality of life of urban dwellers (also discussed in Chapter 1).
into policy processes and its implementation. It proposes ways to
improve use of diagnostic tools and enhance integration of MRV Numerous models and tools exist for achieving a better
systems for urban climate action in developing countries by quantitative understanding of GHG emissions impacts of urban
addressing gaps and barriers. growth and outcomes of urban climate mitigation interventions.
Robust datasets and analytical tools can facilitate (i) the
Role of diagnostic tools in facilitating identification of current and future carbon footprints of urban
5.1 integration of urban climate action areas (and urban climate risks); (ii) a granular assessment of
into NDCs and LTSs urban mitigation challenges and responses in key sectors
including energy, transportation and mobility, waste, the built
environment, and cross-sectoral aspects of urban systems; and
Robust data and diagnostic approaches are crucial elements
(iii) improved understanding of carbon lock-in risks, particularly in
for integrating the low-carbon urbanization agenda in climate
rapidly urbanizing areas, along with positive spill-over effects of
and urban development policy processes. Augmenting such
low-carbon transitions. Such diagnostics can support the
approaches in developing countries can improve the evidence
consideration of current and future GHG emissions growth in
base for urban policy decisions and inform the ambition of
countries’ urban areas and their GHG avoidance and abatement
national- and city-level climate interventions. For example,
potential in both climate planning (e.g., NDC) and urban
urban mitigation diagnostics can provide critical insights to
development planning (e.g., NUP) efforts at national level. They
policy makers on the medium- and long-term impacts of
can also enable development of country-specific urbanization
technological, behavioral, and land-use trends in urban areas
scenarios (e.g., by factoring in urban population and economic
to develop pathways for longer-term economy-wide transitions
growth trends and policy, regulatory, and technological
in LTSs (including through modelling). Such analyses can also
changes) that can be reflected in the country’s LTS and the
highlight new mitigation opportunities in urban areas, which
identification of concrete short- and medium-term policy and
may contribute to enhancing national ambition on climate
investment milestones.
action (e.g., through more actions) and help identify more
granular city-level actions in national climate change strategies. Improving evidence-based design of
Similarly, strengthening data collection and reporting 5.1.2 climate-related policies and interventions
processes is important for streamlining tracking of progress on in urban areas
achieving medium- and long-term climate goals across
different levels of government and entities to feed into the Data and diagnostics are crucial for creating a strong evidence
national MRV system. base of urban mitigation challenges and opportunities to advance
the design of impactful policies and investments. For instance,
Enhancing understanding of low-carbon GHG inventories help understand the emissions baselines and
5.1.1
urban development pathways contribution of key sectors and activities at different levels of
aggregation and spatial scales. Projections of emissions using
tools or modelling can show how emissions will change in the
Urban areas have complex spatial and temporal interactions absence of (or with existing) measures in both national and local
between economic activity, demographic factors, land-use contexts under certain assumptions (e.g., population growth
and transportation systems, employment sectors, and trends, income levels, global and national climate ambition). This
environmental stressors. Influencing these complex facilitates setting and allocating targets at different jurisdictions —
interactions and identifying measures to reduce cities’ carbon city, regional, and national—and for different sectors over the
footprint require understanding how they work and impact medium- and long-term and identification of relevant actions to
GHG emissions. This is even more important in LICs and achieve these targets. Diagnostics can also help quantify the
LMICs since, as discussed in Chapter 1, near-term decisions impact of climate mitigation actions, both in terms of expected
about infrastructure investments in these countries will GHG reductions and wider costs and benefits. This can support
influence both their urban environment and the quality of life decision makers in developing policy and investment choices that
of urban dwellers in the long-term and the efforts needed to minimize trade-offs and achieve the most impact and in tracking
transition toward low-carbon urban development. overall progress in reducing emissions.
48
Barriers to evidence-based urban climate However, many tools can be adapted to these regions, and
5.1.3
policy processes several have been developed to address their needs. For
example, the Low Emissions Analysis Platform–Integrated
Benefits Calculator is an accounting tool for air pollution and
There is currently a large knowledge base of operational GHG emissions, which accounts for practices unique to
reviews and online resources on the use of tools and models developing regions, such as wood-fired cooking stoves. The
for assessing urban climate mitigation interventions—NDC GHG Abatement Cost Model (GACMO) is a rapid diagnostic tool
Climate Toolbox,²⁸ World Bank Group (2020),²⁹ City Climate developed for developing regions with the aim of assessing
Finance Gap Fund (2021),³⁰ GCoM for Climate and Energy GHG abatement costs. The easy-to-use spatial tool Urban
Resource Library³¹ and the World Bank’s guide on choosing Performance has also been used in many developing countries.
macroeconomic models for climate policy analysis (World Bank Quantitative urban models that assess the impact of new
Group 2022c). Tools and models differ in their ability to transportation infrastructure (e.g., BRT) on settlement patterns
simulate temporal dynamics and cross-sectoral interactions and and spatial income distributions have been piloted in Africa and
in terms of their sectoral coverage and geographic scales. They
South America (Tsivanidis 2018; Bird and Venables 2019).
also vary in their applicability across regions. Some tools and
methodologies enable benchmarking of different future
An analysis of a non-exhaustive list of urban tools and
scenarios and simulate combinations of policy measures.
models (see Box 5.1) was undertaken for this report to: (i)
Certain models specialize in a single task, such as forecasting
identify key gaps that hinder data-driven integration of urban
land-use change and urban growth, analyzing transportation
climate change action in national climate planning processes
patterns, or assessing energy systems. Other urban models
in developing countries (discussed below) and (ii) determine
capture more general interactions between processes in urban
if the range of available urban tools and models sufficiently
systems, most notably land use and transportation.
covers the key diagnostics questions relevant to low-carbon
urbanization, especially in rapidly urbanizing developing
Models range from simple tools that can assess smaller or
countries (discussed in Table 5.1). This analysis identified
marginal changes of one intervention to full-scale models that
several general limitations of tools and models:³⁴
can capture non-linear interactions³² and project long-term
changes to the urban landscape. Urban models and tools can
be characterized into ‘model families’ based on their different Most tools are focused on earlier phases of planning,
characteristics (Box 5.1).³³ Some models enable users to including problem definition and formulation of policy
explore the impacts of infrastructure, policy, or technology proposals, and few are available to support cities in the
execution and implementation phases.
choices and identify and prioritize investments and policy
interventions that will have the greatest impact in terms of
Many tools do not provide comprehensive coverage of
avoiding or reducing GHG emissions. Others help identify potential impacts on poverty and equity. In addition, there
interventions that can achieve development priorities with is uneven capacity across most model families to quantify
lower GHG emissions. Such models can also highlight the co-benefits of low-carbon and deep decarbonization
potential trade-offs and synergies between these goals and interventions and trade-offs with development priorities.
other objectives such as jobs creation or poverty reduction and
can be used for scenario testing of the long-term impacts of Not all tools assess GHG emissions, and not all models that
different urban development pathways on GHG emissions do (e.g., global models) have detailed representation of
trajectories to avoid undesired carbon lock-in. However, it is urban issues (e.g., how the urban form and the extent of
important to note that the number of models capable of urbanized areas influence the distribution and densities of
providing both sophisticated urban development scenarios and households, jobs, and services and shape energy demand in
the resulting carbon footprint of interventions remains limited. cities). Therefore, assessing the contributions of different
policy interventions to low-carbon development may require
translating the outputs of one model into another.
Limitations of diagnostic tools in informing low-
carbon urbanization pathways and their impacts in Very few models have the ability or have been used to assess
developing countries impacts of synergistic policies and cross-sectoral interventions,
which is a significant limitation given the potential enhancing
Many models are well-suited for use in developed countries, effects of the simultaneous implementation of various policies
which have readily available data at high spatial resolution and through spillover effects and co-benefits.
representative cause-effect relationships or elasticities. There
is a significant lack of models tailored to cities in Africa, Asia, or The significant data requirements associated with a valid
Latin America, limiting practitioners’ ability to sufficiently model setup may limit the number of tools that can be
address analytical needs in regions where most urbanization is readily applied in developing countries given the current
limitations of local data.
expected to occur (e.g., in SSA and South Asia).
²⁸ A curated online resource to search for urban tools related to NDC preparation and planning by NDC Partnership. Available at:
https://ndcpartnership.org/about-climate-toolbox. Accessed in November 2023.
²⁹ A World Bank review of Integrated Urban Planning Tools for Greenhouse Gas Mitigation supported by the Global Platform for Sustainable
Cities and GEF.
³⁰ The “Urban Greenhouse Gas Modeling Tools” knowledge note is a primer to help cities and organizations working with cities understand and
select available tools, based on their needs.
³¹ The library has instruments, applications, and algorithms that better inform decision making for cities and local governments, especially
around planning, service provision, and regulatory assessments. This is also supported by an overview of tools prepared by GCoM. Bloomberg
Associates and WRI (2021).
³² In the real world, sectors and activities influence each other and strongly interact with the spatial layout of cities. This means that processes or
developments may reinforce or slow each other in non-obvious ways. Such “non-linear” dynamics cannot be represented when sectors and
economic activities are modelled independently from each other.
³³ These model families include urban GHG inventory tools, rapid diagnostic tools, non-micro-founded spatial models, and micro-founded urban
spatial models.
³⁴ Several of these findings are in line with outcomes of other reviews on the suitability of modelling tools for developing country contexts, such
as GCoM (2021).
49
Limited resources and technical capacities to use Approaches for strengthening evidence-
5.1.4 based decision making in support of urban
diagnostic tools climate policy processes
Entities at different government levels engaged in urban
climate policy processes may not have the expertise to identify This section outlines key solutions that can be adopted in
and apply diagnostic tools to address their specific policy developing countries to augment their ability to use
needs. It may be difficult for non-specialists with limited climate- diagnostic tools to support climate-informed urban policy
related expertise to formulate diagnostic questions that can processes (Figure 5.1). These solutions are focused on (i)
support integration of low-carbon urban development improving cities’ capacities to use urban tools and models; (ii)
considerations in national climate planning processes. While enhancing alignment between tools used for country- and
rapid diagnostic tools or GHG inventories (which usually feature city-level diagnostics, and (iii) continual tailoring of urban
accessible interfaces and user support) may be sufficient to models and tools to respond to policy needs in cities in
provide quick assessments of impacts for smaller policy rapidly urbanizing countries. Broader integrative solutions
interventions, larger, system-wide interventions and complex pertaining to strengthening intergovernmental coordination
projects may require the use of specialized models that are and promoting collaboration and sharing of knowledge, tools,
modified/tailored to address targeted and sometimes and resources (discussed under Pillar 1) can equally
complicated questions. Setting up and running such models contribute to strengthening evidence-based decision making.
requires modelling expertise, time, and resources, including for This section also discusses the main diagnostic questions
obtaining external support (e.g., experts in modelling). that can be explored at different government levels to inform
However, given the expected long-lasting impacts of urban better integration of low-carbon urbanization priorities into
interventions, mobilizing resources for a robust and national climate planning processes. It also proposes a
comprehensive assessment of their direct and unintended simple guide for selecting the most appropriate tools and
impacts may justify such investment. models to provide urban climate policy-relevant insights.
Figure 5.1: Solutions for strengthening evidence-based urban climate policy processes

Promote collaboration and sharing of
Limitations of urban tools knowledge, tools, and resources
and models to support
Evidence-based policy processes
diagnostic of low-carbon
urban pathways Improve cities' capacities to use
urban tools and models
Enhance alignment between tools used for

country-level and city-level diagnostics
Limited technical capacities

to use diagnostics tools
Tailor urban models and tools to respond to the

policy needs in rapidly urbanizing countries
Improve cities’ capacities to use urban tools and models Entities engaged in climate policy processes relevant to
As discussed in previous sections, the low-carbon urban urban areas at different government levels need support
development agenda in rapidly urbanizing countries has several to select appropriate tools and models depending on the
key characteristics that need to be considered when pursuing intended policy objectives, priorities of the diagnostics
its integration into national climate and development planning being undertaken, and available resources. Choosing the
processes (e.g., NDCs, LTSs). Table 5.1 summarizes the main ‘right’ tool or model is not a trivial task. The Guide for
urban diagnostic parameters that help evaluate the outcomes selecting diagnostic tools and models proposed on pages
and impacts of low-carbon growth and climate mitigation 52 to 57 can inform the choice of appropriate tools and
interventions in urban areas and their relevance to low-carbon models to generate insights on the main urban diagnostic
urbanization policy processes. parameters discussed in Table 5.1.
Table 5.1: Main urban diagnostic parameters to assess implications of low-carbon growth interventions in urban areas
Urban diagnostic parameters Relevance to low-carbon urbanization policy processes
Urban form shapes energy demand in cities by influencing the distribution

Impact of land-use patterns and spatial of infrastructure, services, and economic activity. Urban infrastructure and
planning on the level of demand/supply the built environment are long-lived assets that embody triple carbon lock-
of urban services, travel demand, in in terms of their construction, operations, and demolition (Creutzig et al.
infrastructure, and the built environment 2016b; Seto et al. 2016; Ürge-Vorsatz et al. 2018) and influence the
mitigation potential of urban areas (based on Lwasa et al. 2022).
³⁵ These are GHG emissions embodied into materials used to construct urban infrastructure, such as concrete, steel, and insulation.
50
Impact of sectoral technology choice on The choice of technologies, materials, and infrastructure that have
the level of demand/supply of urban different carbon intensities will drive urban GHG emissions trajectories
services, travel demand, infrastructure, through demand for energy, mobility, and urban services and
and the built environment embedded or material-related³⁵ GHG emissions.
Cross-sectoral interventions treat urban areas as the nexus of energy and

urban form that can contribute to reductions in both material-related and
Impact of cross-sectoral interventions on energy-related GHG emissions while enabling housing and mobility
the demand for urban services and services to benefit the population. An example of such a strategy is
infrastructure electrifying mobility, while decarbonizing electricity and energy carriers
and switching to net-zero materials and supply chains (based on Lwasa et
al. 2022).
Impact of climate mitigation The impact of urban climate mitigation interventions (e.g., changing
interventions on energy demand and/or street lighting) on energy demand and/or GHG emissions (e.g., reduction
on GHG emissions generated by extending car-free zones).
Economy-wide climate mitigation policies such as emissions trading

schemes, eco-labelling regulations, and adoption of low-carbon vehicles
may contribute to achieving broader urban sustainability goals. System-
Impact of economy-wide or sectoral
wide interventions such as spatial planning for compact urban growth
climate mitigation policies on urban
supported by climate policies can help meet both climate mitigation and
development indicators
development goals in urban areas, for example, by improving access to
low-carbon transportation modes and reducing travel demand and air
pollution.
Evaluating economic impacts of climate interventions such as transit-

Economic impacts of climate mitigation oriented development on changes in housing rents, incomes, and access
interventions to jobs can inform whether and how such interventions positively impact
employment and the livability and competitiveness of urban areas.
Climate policy interventions in urban areas lead to social and

Social and environmental co-benefits
environmental co-benefits or unintended positive impacts such as
and unintended positive impacts of
reduced congestion, improved air quality, and improved access to
climate policy interventions
services.
Climate policy interventions may result in negative impacts or trade-offs

with other urban development objectives, therefore, designing policies
and infrastructure solutions in a way that fosters accessibility, equity, and
Impact of climate mitigation inclusivity for disadvantaged groups is essential (Viguié and Hallegatte
interventions on poverty, income 2012; Sharifi 2020; Pörtner et al. 2021). For example, climate mitigation
distribution, equity, and informality measures can reduce health risks arising from energy poverty (e.g.,
burning biomass) especially among vulnerable groups such as the elderly
and those living in informal settlements (Monforti-Ferrario et al. 2018;
Lwasa et al. 2022).
51
Guide for selecting diagnostic tools and models
An easy-to-use guide developed for this report can support

(ii) Rapid diagnostic tools explore the mitigation
users in selecting appropriate diagnostic tools and models
potential and costs of various policies and
depending on the intended purpose, priorities, and available
interventions (e.g., fuel switch), without fully
resources. This guide is underpinned by the analysis of
modelling underlying mechanisms and interactions
select urban tools and models undertaken for this report
between sectors or spatial representations. These
(see Box 5.1).
tools offer quick insights, and many have user-
friendly interfaces. Examples include Advanced
The guide is structured as follows:
Practices for Environmental Excellence in Cities
(APEX) and its predecessor Climate Action for Urban
1. It categorizes the various urban diagnostic tools and
Sustainability (CURB), which are widely used across
models into “model families” to direct users and decision
regions and include user support. Adaptation and
makers toward a group of tools relevant for addressing
Mitigation Interaction Assessment (AMIA) is a tool for
their policy objectives.
identifying shared benefits of adaptation and
mitigation actions, and the Greenhouse Gas
2. To arrive at a specific model choice, it then outlines a set
Abatement Cost Model (GACMO) is appropriate for
of criteria, such as common technical abilities, sector
creating country-level GHG abatement cost
coverage, and usability and robustness of models, to
assessments in developing countries. Other
address specific policy-relevant questions. These criteria
examples include the Action Selection and
can assist the user in translating the key diagnostic
Prioritization (ASAP), City Infrastructure Footprint and
parameters relevant to low-carbon urbanization (Table
Action Analysis (CIFAA), ClearPath, Coefficient
5.1) into relevant model abilities.
Correction, City Performance Tool (CyPT), and
Strategy-based Model for Low Carbon Cities (SMLC).
3. Finally, a high-level decision tree (Figure 5.2) enables
the user to identify specific model families based on the
(iii) Non-micro-founded spatial models represent
intended purpose and priorities of the diagnostic.
the behaviors of economic agents,³⁶ relying on
assumed and mostly stable empirical relationships to
simulate urban spatial extent, population distribution,
1 Model families economic activity, travel behaviors, and climate
vulnerabilities. Examples include Urban Performance
and UrbanFootprint, which are very accessible tools
Urban tools and models can be categorized into “model with a track record of application for decision
families,” which loosely correspond to distinct modelling making. Urban Performance, which can be used in
traditions that usually share several key features. This all parts of the world, tests development scenarios
categorization can guide decision makers and users toward with indicators for environmental, economic, and
the group of tools best suited for addressing their policy societal welfare considerations, while UrbanFootprint
needs (see Box 5.1). focuses on climate adaptation and urban resilience
in the United States and Mexico.
(iv) Micro-founded urban spatial models represent

Box 5.1: Urban tools and models: Understanding underlying mechanisms explaining the behavior of
common features to support tool selection individual economic agents (e.g., construction or
locational decisions) and the resulting outcomes
This Guide comprises four main families of urban from their interaction—the land-use patterns and
tools and models, applied at the city level. These spatial distribution of populations, economic
tools and models are not suitable for expanding activities, and real estate prices. Agents’ behaviors
the assessment beyond city level: are fully described and micro-economically founded
and have explicitly represented market mechanisms.
(i) Urban GHG inventory tools support the RELU-TRAN (Regional Economy, Land Use and
development of GHG emissions inventories that Transportation Model) and NEDUM-2D (Non-
can be deployed to understand cities’ current Equilibrium Dynamic Urban Model) are models
emissions sources and monitor trends. Most grounded in urban economics. SLEUTH (Slope, land
inventories are based on the Global Protocol for cover, excluded regions, urban land cover,
Community Scale Greenhouse Gas Inventories transportation, and hill shades) and SIMPLAN
(GPC) accounting method, which is an adaptation (SIMplified PLANning Model) both simulate future
to the city level of IPCC accounting standards. urban growth, and TRANUS and UrbanSim model
The City Inventory Reporting and Information land-use interactions. Other models in this family
System (CIRIS) developed by the C40 Cities include Agent iCity, Agent-based market diffusion,
Climate Leadership Group is also a widely used SimMobility, and UEFM (Urban Energy Footprint
tool for creating emissions inventories, relying on Model). Quantitative urban models (economic
the GPC standard. Other examples include the geography models) can explain agglomeration
Google Environmental Explorer, which is based economies and welfare effects and simulate the
on Google proprietary data, Emission Sources effects of significant interventions, such as the
Account (ESA) model, Global Emissions Model for development of a new city district, but need further
Integrated Systems (GEMIS), GHG Contribution development for their use in GHG emissions
Analysis, and the Long-range Energy Alternatives assessments. Examples include the Ahlfeldt model
Planning— Integrated Benefits Calculator (LEAP- (2015), Bird and Venables Model (2019, 2020),
IBC), which is particularly relevant for developing Heblich reduced form model (Heblich et al. 2020),
countries. as it can account for practices that are Tsivanidis model (2018), Sturm model (Sturm et al.
unique to these countries. 2021), and Zárate model (Zárate 2022).
53 ³⁶ Depending on the models, economic agents can be citizens, families, dwellings, firms, and governments.
specific, policy-relevant questions, including their user

2 Selecting diagnostic tools friendliness and accessibility (e.g., data requirements,
methodological transparency, knowledge prerequisites, and
available support), the thoroughness of their scientific review,
This Guide identifies common technical abilities and sector and the extent to which they have been applied in
coverage of urban models and tools as criteria for model developing countries. Each of the criteria is discussed in
choice (see Figure 5.2). It also provides a set of criteria to detail below and can inform the use of the high-level
determine the usability and robustness of models in addressing decision tree for model selection.
Figure 5.2: Criteria for selecting models: (a) Model abilities and (b) Usability and robustness
(A) MODEL ABILITIES
Spatial Context
Geographic scale
Suitability for different geographic regions
Sectoral Representation
Coverage of multiple sectors of the urban economy. Description of the energy demand structure and
characteristics of the study area.
Simulation of processes, interactions and interventions
Impact of land-use patterns and spatial planning on the level of demand/supply of urban services, travel demand,
infrastructure and the built environment
Impact of sectoral technology choice on the demand/supply of urban services, travel demand, infrastructure and the
built environment
Impact of cross-sectoral interventions on the demand for urban services and infrastructure
Impact of interventions on energy demand
Impact of interventions on GHG emissions (from stationary and mobile emitters)
Impact of economy-wide or sectoral climate mitigation policies on urban development indicators
Economic impacts of interventions
Social and environmental co-benefits and unintended impacts of climate policy interventions
Impact of interventions on the level of poverty, income distribution, equity, and informality
(B) USABILITY AND ROBUSTNESS
Robustness and
Usability
Validity
Data requirements Sensitivity
Methodology transparency
Validation of model performance through the
Level of knowledge prerequisites recreation of historical features.
Support available
Scientific validation
Time requirements
54
tree illustrated below is intentionally inexhaustive as it aims

High-level decision tree for to provide stylized, easy-to-follow diagnostic parameters
3 model selection that a modelling tool should be able to address. The
decision tree summarizes the outcomes of the review of
tools and models undertaken for this report and suggests
The key diagnostic parameters relevant to low-carbon the model families that could be suitable for addressing
urbanization (Table 5.1) can be translated into relevant model diagnostic questions based on their common technical
abilities. The set of guiding questions in the high-level decision model abilities and sector coverage (see Figure 5.3)
Figure 5.3: High-level decision tree for model selection based on intended purpose and priorities of the diagnostic
Yes
Assess current urban GHG emissions GHG Inventory
Tools
Assess impacts from a new policy, technology or

urban project on GHG emissions
City-level and specific interventions
Yes
Yes
Perform a rapid assessment without spatial Rapid Diagnostic
dimensions Tools
No
Perform an assessment including spatial

dimensions
Yes
Detailed modeling of underlying urban

No Non-micro-founded
dynamics, feedbacks and temporal evolutions urban spatial models
Yes
Micro-founded urban
spatial models
Inform about macro-economic variables (e.g.,

growth, employment) and assess implications
Country-level and global trends
of mitigation policies for systems of cities

Economy-wide
models
Inform about long-term socio-economic scenarios

Global integrated
and climate change, assess possible outcomes of
assessment models
large-scale mitigation policies
55
The impact of sectoral technology choice on the level of

4 Model selection criteria demand/supply of urban services, travel demand,
infrastructure and the built environment: This sub-criterion
describes whether the model can reflect the impact of
technologies, materials, and infrastructure with different carbon
(a) Model abilities intensities on the evolution of urban development indicators
Spatial context that will, in turn, drive urban GHG emissions trajectories.
The impact of cross-sectoral interventions on the demand

Mitigation interventions can occur at multiple urban scales, from for urban services and infrastructure: This sub-criterion
households and blocks to districts and city regions, and can be focuses on whether the tool or model can assess the impacts
implemented as stand-alone sectoral strategies (e.g., increasing of cross-sectoral interventions such as circular economy
energy efficiency for appliances) or as system-wide actions (e.g., approaches or integrated urban and transportation planning.
transportation infrastructure investments, housing regulations)
(Lwasa et al. 2022). In addition, demographic, social, economic, The impact of interventions on energy demand: This sub-
and political factors vary between cities and may affect the criterion helps identify whether the model or tool can evaluate
uptake of interventions. These criteria describe the scales at the impacts that various interventions may have on energy
which a model or tool can be applied and its suitability for demand. These may include, for example, the change in energy
different geographic regions: use from switching city streetlights to LED.
Geographic scale: This sub-criterion pertains to the scale at The impact of interventions on GHG emissions (from stationary
which the model can be applied (e.g., city, national, regional, and mobile emitters): This sub-criterion helps determine whether
or multiple scales). This is useful for determining the type of the model or tool can evaluate the impacts that various
interventions may have on GHG emissions (e.g., the GHG
assessment that the model or tool can be applied to and emissions reduction generated by improving waste disposal
whether it can be used to support country-level comparisons. practices or installing rooftop solar panels in an urban area).
Suitability for different geographic regions: This criterion The impact of economy-wide or sectoral climate
reflects the context in which models have been applied or mitigation policies on urban development indicators: This
to which they can be applied. Most importantly, it helps sub-criterion helps assess whether the tool or methodology
determine whether the model may be applied to different can simulate the impacts of various economy-wide or
development statuses and levels of informality in the sectoral climate mitigation policies such as vehicle fuel
economy. standards or fiscal incentives for low-carbon vehicles.
Sectoral representation The economic impacts of interventions: This sub-criterion

focuses on whether the model or tool can indicate the
Urban mitigation actions can focus on a single sector or include economic impacts of interventions such as investment costs,
multiple sectors. Some of these actions can have long-lasting and changes in real estate prices, incomes, and job creation.
far-reaching impacts beyond direct sectoral effects. Urban energy
The social and environmental co-benefits and unintended
infrastructure often operates as part of larger energy systems, impacts of climate policy interventions: This sub-criterion focuses
offering various options for electrification, decarbonization, and on whether a model can show the social and environmental co-
energy-efficiency improvement in urban systems (Lwasa et al. benefits or unintended impacts of climate policy interventions.
2022). The IPCC Sixth Assessment Report distinguishes between
two broad categories of urban mitigation strategies: (i) strategies in The ability of the model to simulate the impact of
key sectors, including clean energy, sustainable transportation, interventions on the level of poverty, income distribution,
and construction, for which the coupling of sectors³⁷ can be equity, and informality: This sub-criterion focuses on whether
enabled through electrification and (ii) strategies that focus on the model or tool can predict the varying impacts of climate
emissions reduction through a more systematic or fundamental interventions on different social groups or their implications on
understanding of urban design, urban form, and urban spatial poverty and income distribution within an urban area.
planning and that propose synergistic scenarios for achieving
carbon neutrality (Lwasa et al. 2022). (b) Usability and robustness of models
The following criteria characterize sectoral representation in
modelling tools: In addition to model abilities, other parameters that should be
considered to ensure that the diagnostic tool is fit-for-
Coverage of multiple sectors of the urban economy: This purpose in a specific context include: (i) user friendliness and
criterion focuses on whether a model provides granularity accessibility of the models and tools, (ii) how thoroughly they
at the sectoral level and the sectors it covers. have been reviewed, and (iii) the extent to which they have
been applied in case studies.
Description of the energy demand structure and
characteristics of the study area: This criterion helps show Usability
whether the model describes the energy demand and
energy production system(s) within the study area. Usability is assessed based on four sub-criteria that describe
how adaptable the tools and models are to different
Simulation of processes, interactions, and interventions requirements and how much expertise their use may require.
Several criteria can be used to identify whether and how the Data requirements comprise the data inputs required from
tools and models can reflect specific urban diagnostic the user to produce an output. Understanding the data
parameters that need to be assessed to evaluate implications of requirements for various tools and models is important to
low-carbon interventions, including in terms of GHG emissions, determine where they can be applied and whether they can
urban socio-economic indicators, and potential synergies and be supported by online databases/proxy data. This may also
inform future needs and scope of data collection exercises.
trade-offs with other urban development priorities:
Methodological transparency is the extent to which the
The impact of land-use patterns and spatial planning on the algorithms or underlying assumptions employed within the
level of demand/supply of urban services, travel demand, tool or model are documented and accessible to the user.
infrastructure and the built environment: This criterion can This sub-criterion helps in understanding how easily the user
help determine whether the tool or model reflects the spatial can follow the algorithms within the tool or model, as this can
configuration of urban infrastructure and the relationship potentially affect the adaptability of the approach used by the
between the intervention and demand for/supply of urban model to the users’ diagnostic needs/context and the ability
services, built infrastructure, and travel demand. to meaningfully interpret the outcomes produced.
³⁷ There is no universally agreed definition of the concept of ‘sector coupling’. It pertains to, for instance, interconnecting or integrating energy-
consuming sectors. In its report, “Sector Coupling in Facilitating Integration of Variable Renewable Energy in Cities,” IRENA defines sector coupling as
the process of interconnecting the power sector, especially to support integration of high shares of variable renewable energy, with the broader
energy sector (e.g., heat, gas, mobility) (IRENA 2021).
56
Level of knowledge prerequisites: This sub-criterion

involves the information, skills, and knowledge required to
set up and run the model or effectively employ the As a result, the BRT system failed to attract sufficient
approach to produce useful and meaningful outputs. This demand from private vehicle users. In 2016, the
consideration is important to determine how easily an World Bank’s City Planning Labs, the Indonesian
approach can be adopted by non-experts, especially if the government, authorities from Semarang, including
available level of support is low.
the city’s development planning agency, and other
Level of support available: ‘Support’ may include the help stakeholders developed a concept for the
desks, tutorials, and online communities from which support development of Semarang. They developed more
can be obtained, availability and usefulness of regularly than 100 possible development scenarios with a time
updated documentation, and training. This sub-criterion, in horizon of 2030, considering a range of interventions
combination with the level of expertise needed to effectively such as alternative public transportation modes and
implement a model, helps determine the overall level of spatial planning options. The socio-economic and
external support that may be required for an assessment. environmental indicators used to analyze the
scenarios included proximity to jobs, schools, public
Time requirements: This shows how much time and spaces, sports facilities, and places of worship. The
expert effort are required to run the model. The time two reference scenarios were a BAU situation and
requirements depend on (i) the readiness and the city’s Detailed Spatial Plan (RDTR) for 2011-2031.
availability of the required input data, which may take
weeks or months to collect, and (ii) the readiness of the
tool or model to address the specific question. More The Urban Performance tool was used to evaluate
complex models tend to require adaptation and fine- the selected scenarios and determine how they
tuning, often with involvement of experts. performed against the selected indicators. The choice
of this model was driven by the following diagnostic
Robustness and validity requirements and model abilities: (i) the modelling
effort first focused on parameters related to the
spatial configuration of the city, e.g., the spatial
These criteria enable the user to assess the overall ‘certainty’ of
distribution of population densities and the layout of
the models or tools and whether the outcomes are robust for a
specific set of assumptions and to integrate relevant uncertainties. the transportation network, and this was followed by
(ii) an analysis of diagnostic indicators comprising
Sensitivity. This sub-criterion focuses on whether a access to transportation infrastructure and urban
sensitivity analysis has been undertaken to determine the amenities, the capacity of the transportation system,
impact of different parameters on model or tool outputs and and reduction of existing congestion.
ultimately the robustness of the results. Such sensitivity
analyses try to demonstrate whether small changes in As outlined in Figure 5.3, the spatial dimensions
calibrated model parameters lead to large changes in model of a diagnostic can be addressed by models
results. Typically, a robust model is one that can afford within the spatial model families. Further, as this
uncertainties in parameters without large implications for project did not include a detailed assessment of
model results. underlying urban dynamics, feedback, and
temporal evolutions, its diagnostic needs were
Validation of model performance through the re-
appropriately addressed by the Urban
creation of historical features. In addition to sensitivity
analysis, more trust can be placed on model outputs Performance tool, which is categorized in Box 5.1
that have been validated. This criterion helps assess as part of the non-micro-founded urban spatial
whether the validation of model performance has been model family. The fact that Urban Performance
undertaken for a particular tool or model. has been previously used in several developing
countries increased its suitability for the project,
Scientific validation. This criterion helps determine while the user support and assistance in setting
whether the identified tool or model has been peer up Urban Performance provided by its publisher,
reviewed. This can give an additional indication of the CAPSUS, enhanced its usability.
quality of the approach and the level of trust that can be
placed in the outputs. The Semarang scenario assessment led to the
selection of the Transit Oriented Development
Box 5.2. illustrates how the guide for selecting tools and models (TOD) program, which focused on improving
can be applied in practice through the example of the city of
mobility by developing areas and densifying the
Semarang (Indonesia), where Urban Performance was used to
develop sustainable growth scenarios. population near existing public transportation
infrastructure. The TOD minimized investment
costs and brought significant benefits in terms of
access to transportation. In contrast to Semarang’s
Box 5.2: Forecasting sustainable growth initial RDTR scenario, no additional infrastructure
scenarios for Semarang, Indonesia using investments were required. The TOD scenario was
Urban Performance associated with municipal service cost savings of
13 percent (when compared to the baseline
Semarang is Indonesia’s ninth largest city, with a scenario). The densification that was modelled
population of 1.65 million in 2022. Sharp population within the TOD scenario was found to contribute to
growth has added pressure on the city’s a 20 percent increase in access to public transit
transportation system, which has not been upgraded. when compared to the current spatial plan in the
The number of private vehicles in the city more than city. In addition, this scenario contributed to a
doubled from 2005 to 2014, leading to significant reduction in energy consumption for mobility by 16
traffic congestion. The city introduced several BRT percent and associated GHG emissions reduction
lines, but they lacked sufficient integration with the in the city’s transportation sector by 9 percent.
rest of the public transit system, did not have
Adapted from: Urban Performance (2018)
segregated lanes, and had old vehicle stock. and https://www.urbanperformance.in/case-studies/semarang
57
Enhancing alignment between tools used for country- Build a knowledge base on impacts of urban climate action
and city-level diagnostics across policy agendas. Given the stakes of getting
urbanization right both for development and the climate,
Urban tools and models usually do not allow for expanding the governments need to build a knowledge base to consolidate
assessment beyond the city level and have limited ability to data about wide-ranging impacts of climate actions on urban
directly inform country-level diagnostics on low-carbon development indicators. An improved understanding of
urbanization. However, they can be better aligned with national synergies and trade-offs between these two agendas can
diagnostic efforts by ensuring that they reflect comparable help governments make informed decisions on a range of
economic trends and climate change impacts. These inputs can topics pertinent to cities such as land-use planning and
be provided by two model families—economy-wide and global regulation, housing policies, transportation pricing, and
integrated assessment models (IAMs),³⁸ which focus on infrastructure investments. It can also enhance acceptability
assessing the current state of an economy and worldwide of, and support for, urban climate action by a large set of
trends in economic development and climate change. stakeholders. For complex systems such as cities, where
Economy-wide models are routinely used for economic and interventions can have wide-ranging impacts across different
financial forecasts. This group includes dynamic stochastic policy agendas such as poverty, inequality, labor market
general equilibrium models, computable general equilibrium outcomes, and climate, such a knowledge base is typically
models, and other types of macroeconomic models. Integrated constituted through models that can capture the main
assessment models are large and sophisticated models, mechanisms that define urban areas. While model
primarily intended for developing climate scenarios and development and calibration may appear cost-intensive,
understanding GHG emissions sources and consequences of difficult, and time-consuming, these costs should be weighed
climate change policies. These models form the foundations for against the risks of making policy or investment mistakes that
climate scenarios published in academic literature and the could negatively impact urban dwellers over several decades
basis for many climate assessments, including those or lead to carbon lock-in.
undertaken by IPCC. Some IAMs have been coupled with
sectoral urban models. Specific urban effects are often not Enhance understanding of contributions of mitigation
resolved in these models. If urban economies are represented, interventions in rapidly urbanizing countries. There is a
it is usually through the inclusion of urban and rural household significant gap in the suitability of reviewed models and
classifications that have different economic characteristics, tools for urban climate mitigation diagnostics in developing
consumption patterns, and responses to policies. countries, particularly rapidly urbanizing LICs (e.g., only a
few models have been calibrated for cities in LICs that have
Even if these model families are distinctly different from those high levels of informality). This is a concerning limitation from
of urban models, ensuring alignment between the models a climate mitigation perspective, as most urbanization will
chosen for country- and city-level diagnostics is important. This occur in SSA and South Asia. Urgent efforts should be made
can help overcome the limitations of urban models that only to better tailor existing models to these contexts and more
focus on one city at a time when decision makers might be analysis should also be undertaken on recommendations
interested in the country’s urban system as a whole or intend to for developing new models for such contexts. For instance,
apply policy changes to all cities simultaneously. In this context, occupations are predominantly informal in Africa (76
economy-wide models and global IAMs can be useful for urban percent) and the Middle East (64 percent), significantly
climate mitigation diagnostics from two main perspectives: higher than at the global level (44 percent) (ILO 2018).
Recent research demonstrates that informal labor can be
They can provide the necessary inputs for urban models significantlyreduced by the introduction of efficient and
to reflect the expected impacts of large-scale economic affordable transportation (Zárate 2022), and new models
trends, climate change, and policies for assessing low- can forecast such informality reductions and resulting
carbon urbanization pathways and short-term climate welfare gains from public transportation (Tsivanidis 2017;
mitigation measures. More specifically, these models Sturm, Takeda, and Venables 2022).
generate socio-economic scenarios (e.g., demographic
trends, income levels, inequality levels, carbon tax levels, Leverage insights from spatial models by including GHG
fuel prices) that can feed into urban models as inputs emissions impacts. The insights from new quantitative
(downscaling). They can also provide insights on the spatial models can be leveraged by including assessments
impacts of large-scale mitigation policies on urban of GHG emissions impacts. Promising work has been
economies and people, for example, by high-level undertaken recently, particularly with quantitative spatial
modelling of urban systems. This ensures consistency models adapted to Colombia, Mexico, and Uganda, to
between macro dynamics and urban dynamics. understand impacts of new transportation infrastructure
and induced behavior change on informality and welfare
Urban model outputs can be used to inform and fine- gains. However, these models do not currently reflect
tune global models by providing better calibrated associated changes in energy demand and GHG
elasticities or parameters. For example, this can take the emissions. They can be expanded with energy and
form of an elasticity linking compactness or fuel prices to emissions calculation algorithms along with specific
energy use for transportation in urban areas, resulting in applications to inform policy processes dedicated to the
a mitigation potential. In turn, economy-wide models development of NDCs and LTSs, especially in rapidly
such as the World Bank’s Macro Fiscal Model (MFMOD) urbanizing countries. Targeted technical assistance from
may also be used to assess the effects of interventions international climate funds, development partners, or
such as carbon pricing on macroeconomic indicators or academia may be required to support these efforts.
GHG emissions in multiple urban areas.
Explore opportunities of emerging technologies to reduce
data gaps. Beyond existing models, use of emerging
Tailoring urban models and tools to respond to policy technologies such as artificial intelligence and machine
needs in cities in rapidly urbanizing countries learning can be explored for assessing the mitigation risks
and potential in urban areas. These approaches may
The solutions discussed below could help address the general become increasingly important (Kaatz-Dubberke and Kehl
limitations of models and tools in supporting evidence-based 2020) and can possibly improve urban modelling, including
decision making and policy processes in rapidly urbanizing by filling data gaps (Milojevic-Dupont and Creutzig 2021).
countries. Implementing these solutions requires a concerted This could be particularly relevant in the context of rapid
effort at different levels of government and support from a urbanization in LICs and LMICs that is often characterized
broader set of stakeholders, such as international urban by low availability of survey or official data. However, such
initiatives, development partners, and academia: approaches are still being researched.
³⁸ Examples of Economy-wide models are: CPAT (Carbon Pricing Assessment Tool), MFMOD (The World Bank Macro-Fiscal Model), ENVISAGE-MANAGE,
GIDD (Global Income Distribution Dynamics), FSAP (Financial Sector Assessment Program), SHOCKWAVES/UNBREAKABLE, and LTGM (Long-Term
Growth Model). Examples of global Integrated Assessment models (IAMs) include: ETP (Energy Technology Perspectives), REMIND (Regional Model of
Investment and Development), GCAM (Global Change Analysis Model), IMAGE (Integrated Model to Assess the Global Environment), and MESSAGEix
(Model for Energy Supply Strategy Alternatives and their General Environmental Impact).
58
Consistent and comparable data tracking and reporting

Integrating systems for tracking processes support the integration of urban mitigation action into
5.3 climate action NDCs and LTSs by:
Enabling transparent and effective data-driven decision making.

Consistent and comparable data across the various processes
undertaken by different entities to plan, implement, and track the Providing quantified evidence of GHG emissions impacts
outcomes of urban mitigation actions are important prerequisites from urban mitigation actions and/or specific gaps in their
for their integration into national climate change strategies such performance.
as NDCs and LTSs. Such data provide an enhanced
understanding of mitigation opportunities in urban areas at the Allowing the assessment of climate finance opportunities.
planning stage. At the implementation stage, consistent and
comparable data increase the transparency of monitoring and Helping build the climate investment pipeline.
reporting (e.g., by avoiding double-counting of emissions
reduction toward mitigation pledges under UNFCCC (Schneider Facilitating consistency in assumptions by various entities
et al. 2014) and enable a robust assessment of the country’s that are co-creating low-carbon urbanization pathways for
progress toward GHG emissions reduction goals. Importantly, developing strategies such as an LTS.
effective tracking systems that allow systematic and timely
collection, consolidation, and analysis of data on GHG emissions By using high-quality, transparent, and consistent data to
impacts of low-carbon interventions in urban areas can improve underpin target setting and design of implementation
policy design, help identify barriers to their implementation and strategies, national and city governments can ensure that
enhance their uptake. As a result, it is crucial to use consistent climate-related policies and actions address critical GHG
methodologies, data, assumptions, and parameters across emissions drivers, verify the extent of progress, and generate
different levels of government and entities for measuring and important feedback for ongoing policy processes, particularly
reporting on GHG emissions and impacts of mitigation actions. to inform their adjustments (e.g., strengthening targets,
increasing ambition). For instance, this allows governments to
There are several processes (e.g., data collection, analysis, target evaluate whether the short- and medium-term actions
setting, policy development) that underpin the core elements of (typically set out in NDCs) are delivering results consistent
MRV systems (see Box 5.3). Such processes need to be aligned with long-term pathways outlined in LTSs and, in case they fall
through clear communication and collaboration between different short, strengthen the targets and relevant measures in the
entities across government and implementing agencies to enable subsequent NDC update. Such efforts can also help devolve
timely and transparent data flows and aid in the aggregation of responsibility for delivering on targets and enable targeted
impacts and results at the national level and disaggregation at allocation of funding flows to the implementing entities in
local levels. There is a vast body of literature on MRV systems to urban areas. This can also enable governments to access
support climate action, including on integrated MRV systems. This various sources of climate finance (especially international
section briefly outlines the core challenges faced by LICs and funding) to support specific measures.
LMICs in developing integrated MRV systems and offers solutions
to overcome them. Most countries use several MRV systems for different stages of
climate action or at different levels of government. A fully
integrated MRV system consolidates information (e.g., GHG
Importance of integrated MRV systems for emissions inventories, tracking of climate mitigation action and
5.3.1
integration of urban climate action climate finance flows) into one database led by one central
entity. Such integration has several benefits for both national
and subnational levels (see Box 5.4.). MRV integration
Pursuing integration of MRV systems at different government processes can ensure a clear demarcation of roles and
levels can be an important enabler for local governments as key responsibilities at each level as part of integrated institutional
actors to deliver climate action. Data collection (based on a clear structures. However, because of various challenges such as
set of monitored parameters), tracking, and reporting are the insufficient intergovernmental coordination or technical issues
core elements of MRV systems, which are the backbone of (see below), it is not always possible or most efficient to create a
climate planning and implementation processes (see Box 5.3). fully integrated MRV system (ICLEI 2021; Wartmann et al. 2021).
Box 5.3: MRV process as defined under UNFCCC

Collectively, MRV and transparency processes enable
MRV and transparency are terms used in reporting under answers to questions, in the context of action and
UNFCCC. Both concern providing information related to progress on climate change, such as “Where are we?
climate change action and its results at national level, Where are we going? How fast are we getting there? Are
e.g., progress toward climate change targets. Reporting our responses effective?” The MRV-related elements
under UNFCCC aims to generate trust among Parties and involved in planning and tracking climate action and the
allows them to understand how they are progressing main considerations for each for more effective integration
toward combatting the impacts of climate change. are summarized on Figure 5.4.
Figure 5.4: MRV-related elements for planning and tracking climate action
GHG inventory (baseline) Mitigation goals and targets

Imnplementation and reporting
Consistent methods, data, Consistency of disaggregation

assumptions, parameters by geography or sector
Mitigation action
Understand impacts of
GHG emissions
measures through
consistent data
GHG projections (BAU) Mitigation actions impact
Consistent assumptions to underpin Consistency of data to track and
emission projections aggregate / disaggregate impacts
Inform updates and
revisions
GHG pathways Action plans
(mitigation scenarios)
Consistent assumptions to underpin Reflecting shared priorities
scenarios and actions
Source: PSource: Based on Ricardo 2021.
59
An alternative solution for enabling the integration of urban MRV literature has identified several common technical
climate action into NDC or LTS processes is to pursue better challenges associated with developing a well-functioning
alignment of MRV systems. Aligned MRV systems can still integrated monitoring system to track climate actions (GIZ
ensure comparability of GHG emissions data and climate NAMA Toolbox 2014; EcoMetrix Africa 2015; ICLEI 2016a;
action being tracked and realize the benefits outlined above by ICLEI 2016b; C40 2019; WRI/C40 2014). Many of these relate
using the same emissions factors, definitions, and estimation primarily to GHG inventories, which is the first step for
methods at local and national levels. Compared to fully subnational governments in understanding and managing
integrated MRV systems, aligned MRV systems are simpler emissions. Later steps in the MRV process such as mitigation
and often quicker to implement as they don’t require the action tracking, projections, pathways modelling, and tracking
creation of a central database with complex governance of climate finance flows are typically in early stages of
mechanisms. This may also provide greater flexibility to development for many cities in developing countries.
respond to local and national policy needs (while a fully
integrated system may pose the risk of only serving one entity). While a city-level GHG inventory is a prerequisite for creating
an evidence base to plan and design mitigation actions,³⁹ city
governments face numerous obstacles to compiling such
inventories. There also are significant challenges in complying
Box 5.4: Relevance of integrated MRV systems with MRV requirements for reporting on mitigation action and
to support evidence-based climate policy climate finance flows. Availability of reliable high-quality data
processes on both activities and GHG emissions is often a major barrier
in cities in developing countries. For instance, cities might
have limited or incomplete data on certain activities or sectors
Integrated MRV systems are the most relevant within the city boundary (e.g., unreliable data supply) because
for the following components of climate policy of factors such as (i) lack of a formal process for data
processes: collection, (ii) lack of incentives for data collection and limited
accountability, and (iii) lack of emissions factors specific to the
GHG inventories to understand baselines and local context or mismatched data on the baseline. City entities
the contribution of key sectors and activities in charge of data collection may be unable to aggregate data
at different levels and spatial scales. acquired from multiple sources because of inconsistent
formats and categorization or misaligned methodologies or
Projections of future GHG emissions to understand timeframes. Additionally, cities often have limited technical
how emissions will change in the absence of, or expertise on MRV and may be unable to develop key
with existing, measures in both national and local performance indicators (KPIs) that are aligned or can be
contexts and the relevant assumptions that aggregated with higher-level indicators. Lack of capacity could
underpin such projections (e.g., economic and also affect accuracy and completeness of data being reported.
population growth rates).
IPCC stipulates that data reported by parties should be
Setting and allocating targets, including to local transparent, accurate, complete, consistent, and comparable.
scales or different sectors, over the medium- Since city governments are important implementing entities for
and long-term. national climate actions, their limited capacity to track progress
through consistent baseline data and indicators can become a
Developing future scenarios and pathways barrier to the effective integration of MRV systems and
based on assumptions about global and local integration of urban climate action in national climate policy
action and trends. processes.
Tracking impact of climate action, by quantifying
both the expected (ex-ante) GHG emissions
reductions and wider benefits. Differing reporting processes at various government levels
Informing climate planning documents and

reports, including their framing, structure, and While national governments must report the progress on their
presentation; their wider governance and NDC commitments under the Paris Agreement and the
implementation; and monitoring, reviewing, Enhanced Transparency Framework set out by UNFCCC, there
and tracking processes. is no requirement to include or report on actions being
undertaken at the subnational level if these have not been
Quantifying the impact of measures once included in the NDC. There are also currently no requirements
implemented (ex-post) and overall progress for countries to report on progress made toward their LTS goals.
in reducing emissions over time through GHG While some may do so voluntarily (e.g., using the progress
inventories. reporting/M&E requirements developed by C40), cities are also
largely not required to report on progress in implementing their
Assessing the needs for climate finance and climate action plans, reinforcing the urgency of integrating urban
tracking progress in mobilizing resources from climate action into NDCs and LTSs (Box 3.7). As a result, there
different sources. could be misaligned tracking and reporting processes at various
government levels because of different reporting timeframes,
methodologies, tracking and recording approaches, and data
(e.g., collected and reported in different formats, compiled using
different methodologies, tracked through different indicator
sets). This could lead to inconsistencies in target setting,
5.3.2 Key barriers to integrating MRV systems dissimilar KPIs at different government levels (e.g., KPIs of the
climate action plans or related strategies), and difficulties in
aggregating and updating the GHG emissions inventory at
The key barriers to the integration of MRV systems in LICs and different levels, hindering MRV alignment and integration.
LMICs are outlined below.
In addition, barriers regarding integrated institutions,
Data gaps and inconsistent tracking of climate actions particularly lack of clearly defined institutional structures,
roles, and responsibilities on climate (discussed in section
While cities are not bound by the same MRV requirements as 3.2.1.); limited funding for setting up and implementing MRV
national governments, aligning city-level climate planning processes; and limited or lack of technical capacity can
processes with such requirements is important for pursuing also hinder the effective integration of MRV and may
integrated climate action. worsen other barriers.
³⁹ They are also recommended as part of the ‘city journey’ under GCoM and are a core part of the Climate Action Planning Framework promoted
by C40.
60
Aligning MRV approaches

5.3.3 Integrative solutions
Depending on the country and city context, a more
The solutions to overcome barriers to developing integrated or ‘aligned’ MRV approach can often be sufficient, and in
better aligned MRV systems should tackle all the main elements some cases preferable, to enable integration of urban
of MRV processes, including data, methods, and reporting, and climate action into NDCs and LTSs. An aligned approach
the accompanying institutional and incentive structures to ensure allows for having independent MRV activities at different
consistency and sustainability of MRV processes. A staged government levels⁴⁰ that are harmonized for reporting
approach—ranging from enhanced communication to fully purposes. Ensuring consistent data fields and transparent
integrated systems— that factors in the technical and financial assumptions as part of alignment efforts can allow for
constraints faced by LICs and LMICs in developing integrated simpler consolidation of data and processes, without the
MRV systems can help progressively enhance integration of MRV expense and complexity of a fully integrated tracking
between cities and higher levels of government (Figure 5.5). system (e.g., an IT database/web-based tool). In addition,
These efforts should be supported by integrative solutions related aligning MRV approaches should encompass coherent
to the other two pillars of integration, particularly those on policy processes of data collection, validation, and verification
frameworks, governance and institutional structures, mobilization supported by organizational structures with clearly
of sufficient resources, and augmenting technical capacities. The defined roles and responsibilities. This also allows for
most relevant solutions are (i) strengthening intergovernmental continually building technical capacity and resources at
coordination, (ii) enhancing communication between national- and different levels and keeping ownership of data on GHG
city-level on climate action, (iii) establishing requisite organizational emissions and mitigation activities at the local level.
structures and functions, and (iv) promoting collaboration and
sharing of knowledge, tools, resources. The main steps leading to aligned MRV may include the
following efforts, primarily targeted at the highest-priority
Enhanced communication GHG emissions sources or activities, considering available
resources:
Enhancing communication is an important first step toward Improving quality, completeness, and accuracy of data
progressive MRV alignment and integration, especially in collection using templates that reflect KPIs aligned with
contexts where cities and national governments face national KPIs to enhance comparability.
significant barriers across MRV processes, as discussed
above. Practical solutions may include promoting transparent Aligning methodologies across GHG inventories, using
and proactive exchange of information on data collection consistent emissions factors and baseline setting
processes; coordinating on data assumptions, calculations, approaches, sharing and aligning assumptions for
and methodologies; and prioritizing simplified methodologies projections, using consistent calculation approaches for
and completeness of data over granularity and accuracy. For mitigation impacts, and reporting mitigation actions.
example, the reporting format, time periods, and key Other examples include establishing a coordinated cycle
assumptions used for data for GHG inventories, mitigation for reporting inventories and ensuring better
actions, projections, and pathways should be clearly communication on methodological improvements across
communicated to ensure that reported data can be effectively government levels.
used across government levels. Ensuring that the sectoral and
spatial boundaries of mitigation actions and assumptions Developing common reporting processes and tools,
included in any modelling of projections and pathways are including by coordinating on scope and timelines of
clearly articulated is also important for promoting a shared reporting. This could include, for example, agreement
understanding of the basis of calculations. Such efforts can between all levels of government on dates for
help progressively resolve inconsistencies, provide clarity on publication, time periods covered, and frequency of
the approaches used for estimating and reporting the data, reporting data and outputs, so that cycles of reporting
and allow for necessary adjustments and subsequent (e.g., emissions, actions) can be aligned to make best
alignment. Communication on MRV between government use of resources. It also is important to synchronize
levels can be enhanced by appointing MRV focal points at planning and development of strategy documents to
each level to systematically identify, gather, and share ensure that climate action and development plans at
progress on data. This could facilitate timely data collection, each level feed into national reporting (e.g., data
harmonization, and consistency and improve overall data collected at the city level that is relevant to NDC/LTS
quality across all levels of reporting, such as GHG inventories, actions and progress tracking feed into the national
city climate action plans, and NDCs/LTSs. climate MRV).
Figure 5.5: Integrative solutions for MRV systems and processes
Enhance communication between national

Data gaps and inconsistent and city levels on data requirements,
tracking of climate actions methodologies and reporting needs
MRV systems and processes
Differing reporting processes Align MRV approaches across different levels

at various government levels of government
Limited capacities to comply Develop integrated MRV systems and processes

with MRV requirements
⁴⁰ Independence can allow governments at different levels to respond to their specific policy and reporting needs. For example, national governments
must report progress in specific formats established by UNFCCC, while cities might report using templates of relevant city networks.
61
Integrating MRV systems and processes

Consistency of emissions factors can be ensured by
establishing a dedicated database or communication process
Developing effective integrated MRV systems relies on setting for sharing information. A centralized system of inventory
up and maintaining several key elements: compilation can also ensure that methodological updates are
automatically applied at all levels and timeseries.
Complete, accurate, and consistent high-quality data. This
can be achieved by creating database systems or fully
integrated data collection, analysis, and reporting processes, Integrated reporting process based on similar reporting
where the various levels of administration can check which formats, boundaries and timelines of reporting. A fully
data they are expected to compile using common formats for coordinated reporting process would enable the avoidance
data collection. For example, an online database could of double counting (Schneider at al. 2015) through the
enable aggregation of data upwards (e.g., from municipalities centralized nature of calculation and reporting. For example,
to regional and national level).⁴¹ An online database system mitigation actions can be tracked centrally using data
can also help ensure that data is collected for all relevant reported by local governments to the national level. This can
sectors and years (e.g., through automated checks) and that prevent inconsistencies in reporting timelines. However,
each level of administration understands which dataset to integration of reporting timelines needs to be part of a wider
use for tracking climate actions or emissions sources. In process of collaboration and engagement to ensure all levels
addition, an online database can support data transparency of government are empowered to meet reporting deadlines.
between the city and national level by ensuring that all data
entries into the system have specified characteristics (e.g., Strengthening national MRV systems. National systems need
years, units, scope, source). to be ready and/or able to support cities in aligning and
integrating their MRV systems, which is an important pre-
Similar methodologies, inventories, reporting tiers, and condition to integration. National governments therefore
emissions factors. All levels of government would have the have a key role in achieving fully integrated systems, as
same methodologies (e.g., 2006 IPCC Guidelines for national MRV focal points often have power and authority to
National GHG inventories (IPCC 2006)⁴² and Greenhouse design and regulate MRV systems, allocate funding, and
Gas Protocol’s “Policy and Action Standard for Estimating promote a multi-directional flow of knowledge, data, and
the GHG effects of policies and actions“ (WRI 2014), which capacity sharing. As a result, despite the lack of requirements
can later be harmonized and adjusted for internal or within NDC progress reporting to describe achievements at
external reporting (e.g., GPC reporting for cities⁴³ (WRI/C40 subnational level or include subnational actions or emissions
2012)). Integration also ensures that all levels of government profiles within Biennial Update Reports⁴⁴ (BURs), national
use the same models and assumptions/parameters for governments in rapidly urbanizing developing countries
aspects such as projecting baselines and future pathways. should consider the benefits of integrated MRV approaches
The database system can clearly define reporting tiers to as a key enabler of the overall process of integration of low-
collect relevant data, which can be easily aggregated for carbon urbanization considerations into national climate
emissions estimation at national level. planning processes.
Nairobi, Kenya © mbrand85 / iStock
⁴¹ Where issues with data confidentiality exist, a database system could facilitate data sharing, in that only the levels of administration who
need specific data will gain access to it.
⁴² Also see “2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories,” (IPCC 2019).
⁴³ GHG Protocol Standard for Cities formally known as Global Protocol for Community-Scale Greenhouse Gas Inventories developed by World
Resources Institute (WRI), C40 Cities Climate Leadership Group, and ICLEI–Local Governments for Sustainability (ICLEI) (WRI/C40 2014).
⁴⁴ BURs are reports to be submitted by non-Annex I Parties to the UNFCCC (since 2014), containing updates of national Greenhouse Gas
(GHG) inventories, including a national report and information on mitigation actions, needs, and support received.
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Chapter 6. Readiness for urban climate action integration
Across the globe, experience from cities and other subnational For instance, the lack of one or more characteristics (the
governments on climate-informed policy development, action response to most of the questions is “No”) indicates barriers or
planning, and implementation suggests that there is no ‘one gaps that governments should address to improve their
size fits all’ approach to pursuing vertical and horizontal readiness. The presence of some readiness characteristics (the
integration. As discussed in the preceding chapters, the response to several questions is “Yes” or “Partially”) points to
prevalence, nature, and magnitude of the main barriers to an intermediary stage, or moderate level, of readiness, while
integration—across all three pillars—depends on countries’ having affirmative responses to most questions demonstrates
diverse policy and institutional environments and capacities. an advanced stage or high level of readiness.
These barriers could be predominant either at national or city
level or exist across all levels. In addition to applying the Diagnostic Framework to determine
the level of readiness across the three pillars at national and
Devising a feasible roadmap to pursue integration of urban city levels, policymakers and other users can identify a set of
climate action into national climate change strategies such as recommendations at both levels for advancing to the next
NDCs and LTSs calls for a more granular diagnostic approach stage of integration. Countries can thus gradually strengthen
for assessing how the barriers to integration materialize in their enabling environment for integration.
specific national and city circumstances. Such an approach
can help governments and entities across different levels
evaluate their readiness for integration and identify the main 6.2.1 Low readiness
gaps and key areas that need to be strengthened by
applying integrative solutions appropriate for their country,
institutions, and governance context. This chapter proposes a The readiness for integration is ‘low’ when there are gaps in
Readiness Diagnostic Framework to support these efforts. national policy frameworks and institutional structures across
Subsequent sections outline the Framework and describe all three pillars that hinder integration, limited interaction
how it can be used to assess ‘readiness for integration.’ The between national- and city-level entities on climate action,
chapter also illustrates the application of the Framework in a and insufficient capacity by cities to undertake climate action.
country context through a case study on Ghana. National and city governments show low readiness when
they have very few readiness characteristics:
6.1 Readiness Diagnostic Framework At national level, requisite policy frameworks and
institutional structures do not exist or are weak and not
conducive to integration. This can mean lack of or limited
The proposed ‘Readiness Diagnostic Framework’ (or Diagnostic climate change mainstreaming in national development
Framework) helps identify the level of readiness of countries and planning; climate mitigation considerations in national
cities to pursue the set of integrative solutions outlined in this urban development strategies; and recognition of climate
report. This Diagnostic Framework can help policymakers identify mitigation potential of urban areas and city-level
concrete shortcomings that may exist at various government mitigation efforts in NDCs, LTSs, or other national climate
levels within each of the three pillars (or across all of them) and change strategies, which usually limit climate finance
enable them to prioritize and implement the most appropriate mobilization for urban climate action.
integrative solutions.
At city level, the goals of national climate change strategies
While each of the 9 integrative solutions covered in the are not cascading down, a strong mandate for climate
Diagnostic Framework have specific characteristics under each action is lacking, and climate finance mobilized by the
pillar, given the interlinkages among the pillars, some solutions national government is not accessible. Cities are not well-
have characteristics that cut across all three pillars (e.g., equipped for mainstreaming and implementing climate
establishing organizational structures and functions within each action because of (i) inadequate knowledge and awareness
government level; promoting stakeholder engagement; of climate mitigation aspects, including national climate
promoting collaboration and sharing of knowledge, tools, and targets; (ii) lack of or nascent city-level climate planning
resources). Additionally, several standalone integrative solutions efforts; and (iii) insufficient technical and financial capacities.
outlined in Chapters 3, 4, and 5 are presented in a consolidated
manner in the Diagnostic Framework (e.g., enhancing There is a lack of coordination and limited communication
communication between national and city level on climate action, between national- and city-level entities on climate
enhancing technical and financial capacities). action, which also impedes data flows necessary for
considering low-carbon urban development issues and
For each integrative solution, the Diagnostic Framework offers priorities in various decision-making processes and MRV
a set of questions (Table 6.1) to determine whether a specific systems across government levels.
feature, or ‘characteristic,’ of this solution is part of existing
policy frameworks and institutional structures (Pillar 1), finance
mobilization approaches (Pillar 2), and policy processes and 6.2.2 Moderate readiness
MRV systems (Pillar 3). In addition, it includes questions to
determine the presence (or lack) of the key prerequisites for
deploying the integrative solutions. The questions are tailored ‘Moderate readiness’ occurs when national policy frameworks
to different government levels or cut across all levels, as and institutional structures are somewhat conducive to
relevant. Together, the diagnostic outcomes provide a context- integration, national- and city-level entities undertake some
specific indication of ‘readiness’ at national and city levels for coordination on climate action, and cities are partially
pursuing vertical and horizontal integration of low-carbon equipped for planning and implementing climate action.
urbanization considerations. National and city governments show moderate readiness
when they have some of the readiness characteristics
(although they may be unequally distributed across the three
6.2 Levels of readiness pillars) and need to strengthen others and/or complement
them with other measures to pursue integrative solutions:
This section discusses how users of the Readiness Diagnostic National governments are in the early stages of
Framework can evaluate the overall ‘level of readiness.’ The recognizing the climate mitigation potential of urban
readiness levels primarily correspond to one of three stages of areas, are making efforts to reflect such considerations
the integration journey—early, intermediary, and advanced— in relevant national plans and strategies (including
and are based on the presence of readiness characteristics NDCs, LTSs, and sectoral strategies), and are creating
(and prerequisites) outlined in Table 6.1. legislative and regulatory frameworks on climate action.
64
Cities are being increasingly empowered by, and receive Climate change is mainstreamed in national development
support from, the national government to undertake planning and budgeting processes, the country’s national
climate action by strengthening mandates and inclusion climate change strategies, including NDCs and LTSs, and
in national climate policy processes. associated financing roadmaps reflect low-carbon urban
development priorities, including the main drivers of the
Cities are aware of national climate mitigation targets carbon footprint of urban areas and associated GHG
and have a better understanding of specific challenges emissions reduction potential. Cities’ mandates for climate
of urban mitigation action and/or are undertaking action are well-established and supported by clear policy
measures to build the requisite knowledge base. They frameworks that cascade the national climate mitigation
are developing climate action plans and establishing targets down to and across government levels. The national
implementation mechanisms. Cities are also assessing government supports cities in accessing domestic and
their financial and technical capacity gaps and working international sources of climate finance through dedicated
to address them. programs and innovative financing mechanisms.
There are efforts to improve coordination between Cities are experienced in developing and implementing
national and subnational entities to facilitate information climate action plans that are aligned with national climate
and knowledge sharing on aspects such as city-level change strategies and urban development priorities. They
financing needs, data, and diagnostics, and MRV. have robust technical and financial capacities and a well-
developed knowledge base on climate mitigation that is
regularly updated and communicated to the national level
6.2.3 High readiness to support coordinated climate policy processes.
Appropriate institutional structures exist to facilitate

effective coordination between national- and city-level
Countries demonstrate ‘high readiness’ when national policy entities on aspects such as climate planning and policy
frameworks and institutions show high levels of integration of development, budgeting, implementation, and tracking of
low-carbon urban development priorities across all three pillars urban climate action and its impacts (through aligned or
and cities are well equipped and receive support to contribute integrated MRV systems). Such coordination is supported
to national climate goals. National and city governments by evidence-based decision-making processes that allow
demonstrate high readiness when they have most of the for periodic revisions of climate strategies and for scaling
readiness characteristics: up the ambition of NDCs and LTSs over time.
Dalhousi, India © f9sphotos / iStock
65
Table 6.1: Readiness Diagnostic Framework Questions
The key to answering the questions under each integrative solution:

No indicates that the readiness characteristic/prerequisite is lacking.
Partially indicates that some elements of the readiness characteristic/prerequisite are present.
Yes indicates that the readiness characteristic/prerequisite is present.
N/A indicates that the readiness characteristics/prerequisite is not applicable in that readiness level.
Readiness
1 Mainstream climate change in national development
planning and budgeting processes Low Moderate High
Pillar 1
National level
Do the country’s medium and long term (MT and LT) economy wide and sectoral
No Partially Yes
development plans reflect the goals of its NDC and / or LTS and their implementation plans?
Do the country’s MT and LT economy-wide and sectoral development plans reflect low-
No Partially Yes
carbon urbanization considerations?
City level
Are subnational entities (including cities) consistently developing MT and LT

No Partially Yes
development plans?
Are the climate-related goals and actions from national MT and LT economy-wide and
sectoral development plans cascading down to these subnational development plans? No Partially Yes
Pillar 2
Across all levels
Are intergovernmental fiscal transfers regular and consistent? No Partially Yes
Do the budgeting processes associated with national and subnational development

plans explicitly consider the financing needs and main sources of financing for climate- No Partially Yes
related actions?
Does the country undertake climate tagging of budgetary spending (to facilitate
No Yes Yes
monitoring of climate finance flows)?
Do fiscal transfers targeted at urban spending categories include criteria for undertaking
climate action (e.g., conditional transfers to city level)? No Partially Yes
Does the country’s budgeting process earmark funding flows for subnational-level
climate action? No No Yes
Pillar 3
Across all levels
Are national development plans informed by development scenarios that reflect low-
No Partially Yes
carbon urbanization trends?
Do the systems at national and subnational levels for tracking progress on development
goals include climate-related performance indicators? No Partially Yes
Does the climate MRV system ensure that reporting timelines for tracking climate actions
No Yes Yes
are consistent with budgeting processes and timelines?
66
Readiness
2 Integrate low-carbon growth considerations in the national
urban agenda (including through NUPs) Low Moderate High
Pillar 1
National level
Does the country have an overarching urban development strategy or plan (e.g., NUP)? No Yes Yes
Does it include climate mitigation goals and measures (e.g., climate mitigation
measures from the NDC and/or LTS targeted to urban areas, city-level climate No Partially Yes
mitigation efforts)?
City level
Are the climate-related goals and actions from the urban development strategy or plan No Partially Yes
(e.g., NUP) cascading down to the city level?
Pillar 2
National level
Does the urban development strategy or plan include a guiding framework for resource
allocation to cities to undertake climate mitigation actions (e.g., performance-based No No Yes
grants, dedicated climate program)?
Pillar 3
National level
Does the urban development strategy or plan reflect country-specific BAU and low-
carbon urbanization scenarios (e.g., assessment of carbon footprint of urban areas, feasible No Partially Yes
mitigation options)?
Does the urban development strategy or plan contain monitorable climate mitigation
No Partially Yes
actions with performance indicators?
3 Explicitly consider urban climate action in national climate Readiness

change strategies Low Moderate High
Pillar 1
National level
Do the NDC, LTS, or other national or sectoral climate change strategies include low-
carbon urbanization considerations?
Mitigation-related risks and GHG emissions reduction opportunities in urban areas are
considered in NDC target-setting/priority actions or LTS development. No Partially Yes
NDC/LTS priority actions targeting urban areas are translated into implementable city-level
actions.
City-level mitigation efforts and targets are recognized in NDC/LTS or other sectoral
climate strategies.
Does the country have a strong enabling environment for facilitating city-level
mitigation action?
No Partially Yes
Climate change targets are legally binding and cascaded down to subnational level.
Robust climate regulations exist with consistent enforcement (e.g., energy efficiency standards).
Is the country on track to implement its climate change strategies?

The objectives of NDC are being met (e.g., implementation plans being developed, actions being
financed).
Considerations relevant for urban areas are included in NDC implementation plans, and associated
No Partially Yes
targets are being met.
The country has developed an LTS implementation plan or roadmap that includes specific actions
for urban areas.
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City level
Has the city developed an MT climate change action plan that includes mitigation
aspects?
No Yes Yes
Climate change action plans assimilate NDC and/or LTS goals and implementation plans or are more
ambitious.
Has the city developed a long-term low-carbon urbanization vision (e.g., net-zero GHG
No No Yes
emissions targets and associated actions)?
Pillar 2
National level
Do the funding strategies for the NDC, LTS, or sectoral climate strategies identify specific
financial needs associated with the climate mitigation measures to be implemented in No Partially Yes
urban areas?
Is the country successfully mobilizing finance to fund its national or sectoral climate
No Partially Yes
change measures?
Are climate finance flows mobilized by the national government channelled to support
No Partially Yes
urban climate mitigation measures?
Pillar 3
National level
Do the NDC or other MT national or sectoral climate change strategies reflect low-carbon
urbanization aspects (e.g., GHG emissions drivers in urban areas, risks of carbon lock-in, No Partially Yes
impacts of city-level climate interventions)?
Does the LTS incorporate country-specific low-carbon urbanization scenarios (e.g., urban-
No Partially Yes
centric technological, behavioral, land-use changes)?
Do the NDC or other MT national or sectoral climate change strategies include reporting
No Yes Yes
requirements for cities?
City level
Is the city-level climate mitigation action plan underpinned by high-quality data and
diagnostics (e.g., a GHG inventory, GHG emissions reduction scenarios, impacts of city- No Partially Yes
level climate interventions)?
Does the city-level climate mitigation action plan include monitorable actions (e.g., GHG
No Partially Yes
emissions reduction targets or mitigation actions with KPIs)?
Is the progress on climate mitigation actions being reported to national climate

No Partially Yes
planning entities?
Readiness
4 Empower city governments and strengthen intergovernmental
coordination in policy areas with overlapping mandates Low Moderate High
Pillar 1
Across all levels
Do city governments have the regulatory authority to undertake climate action in

No Partially Yes
functions that are within their administrative mandates?
For urban development functions overlapping or shared with other government levels, do
city governments have clearly defined roles and responsibilities for climate action?
Cities have clear roles and responsibilities for shared climate functions. No Partially Yes
The country has mechanisms to seek inputs from city governments on climate-related actions
within their jurisdictions (e.g., through coordinated planning and implementation, clear
responsibilities for enforcing national policies).
68
Pillar 2
National level
Does the country facilitate cities’ access to domestic and international climate finance to
support them in implementing climate functions and mandates (e.g., participation in
international climate funds targeting urban climate action, collaboration with entities No Partially Yes
responsible for participation in carbon markets)?
City level
Do city governments have the authority to generate OSR? No Yes Yes
Do city governments have the mandate to mobilize financing from private sources (e.g.,
No Yes Yes
capital markets, debt-based instruments, PPPs)?
Pillar 3
Across all levels
Are diagnostics efforts supporting climate policy processes (e.g., development of NDC,
LTS, or other climate strategies) aligned across national and city levels?
No Partially Yes
Climate and development diagnostics reflect comparable economic trends and climate change
impacts of urbanization at national and city levels.
Are MRV approaches across different levels of government and reporting needs aligned?
Entities engaged in climate-related progress reporting at different levels of government
coordinate on scope and timelines of reporting.
No Partially Yes
City-level monitorable targets or indicators are aligned with national climate change strategies (to
facilitate aggregation).
Does the country have integrated MRV systems, including GHG emissions databases,
similar methodologies and reporting processes?
No Partially Yes
Cities’ data collection and reporting processes, timelines, and methodologies are fully consistent
with those at national level.
Readiness
5 Enhance communication between national and city level on
climate action Low Moderate High
Pillar 1
Across all levels
Is there a mechanism or framework for coordination between city, state, and national
No Yes Yes
governments on policy and planning processes related to climate?
In the absence of a coordination framework, are climate-related efforts consistently

communicated between different levels of government?
City governments are aware of national climate commitments and their implication for their No Partially Yes
jurisdictions.
Urban climate mitigation efforts undertaken in cities are communicated to the national government.
National and subnational entities are engaged in policy processes relevant to climate action
in urban areas (e.g., co-creation of NDCs and LTSs).
Pillar 2
Across all levels
Are cities communicating about their financing needs for existing and planned climate
actions to the national entities responsible for NDC implementation and resource No Partially Yes
allocation processes?
69
Pillar 3
National level
Does the country have a mechanism or framework for national-level entities and city
governments to communicate on GHG emissions data, diagnostics, and MRV, including No Partially Yes
tracking of climate actions and finance flows?
Readiness
6 Establish organizational structures and functions within each
government level Low Moderate High
Pillars 1, 2, & 3
Across all levels
Are there organizational structures with formally defined roles and responsibilities at each
No Partially Yes
level of government to facilitate climate action planning, implementation, and tracking?
City level
Are city governments adequately staffed and resourced with personnel who have clear
roles and responsibilities on climate change?
No Partially Yes
Cities have a dedicated climate change body.
City governments modified existing roles and responsibilities to incorporate climate-related
functions.
Readiness
7 Promote stakeholder engagement Low Moderate High
Pillars 1, 2, & 3
Across all levels
Are there mechanisms that facilitate engagement of relevant stakeholders on climate

action planning (e.g., across various government levels, private sector, academia, local
communities)?
No Partially Yes
Multi-level stakeholder engagement is undertaken as part of NDC and LTS development and
implementation processes.
City representatives systematically participate in national climate planning processes, including
M&E of outcomes.
8 Promote collaboration and sharing of knowledge, tools, Readiness

and resources
Low Moderate High
Pillars 1, 2, & 3
Across all levels
Are tools, resources, and technical capacities to support climate change policy
processes shared across different levels of government and with other stakeholders (e.g., No Partially Yes
through technical workshops, consultations processes, knowledge-sharing platforms)?
Do national-level entities and city governments effectively collaborate on data,

diagnostics, and reporting tools, including through sharing expertise on climate action
No Partially Yes
(e.g., through quality assurance and guidance, co-creation of low-carbon development
pathways)?
70
Readiness
9 Enhance technical and financial capacity Low Moderate High
Pillar 1
Across all levels
Do relevant entities have sufficient experience in climate action planning and

No Partially Yes
implementation?
City level
Do city governments have sufficient capacities to undertake urban planning and

service provision, and do they assimilate climate-related functions into existing roles No Partially Yes
and responsibilities?
Pillar 2
Across all levels
Do city governments have a strong track record of designing, managing, and

implementing climate mitigation plans and investments?
No Partially Yes
Cities have experience in successful design and implementation of climate mitigation projects or
low-carbon infrastructure investments.
Are city governments funding a sizeable share of their priorities through OSR? No No Yes
Are city governments successfully attracting capital and mobilizing financing from private
No No Yes
sources?
Pillar 3
Across all levels
Are there sufficient technical capacity and resources, including dedicated funding, to
support climate-related diagnostics, tracking, and reporting?
The country has a knowledge base that consolidates data on wide-ranging impacts of climate No Partially Yes
action on urban development indicators and vice versa.
National and city governments and/or other stakeholders have experience using national- and
city-level diagnostic tools that are tailored for the country’s specific urbanization context.
The country is exploring emerging technologies (e.g., remote sensing) to address data gaps.
Are existing MRV systems ready to support alignment and/or integration of city-level
inventories and reporting processes (including to ensure consistency of scope and No Partially Yes
timelines with NDC/LTS policy processes)?
City level
Do city governments have technical capacity to use urban diagnostics tools to support
climate policy processes in their jurisdictions and across various levels of government No Partially Yes
(e.g., NDC and LTS development and implementation)?
Do city governments have technical capacity to comply with MRV and climate action
No Partially Yes
tracking requirements (e.g., developing GHG inventories, setting up M&E systems).
71
Case study: Ghana’s readiness for Urbanization and GHG emissions growth
6.3 urban climate action integration 6.3.1
trends in Ghana
This section illustrates the application of the Readiness Ghana’s urban population has more than quadrupled since
Diagnostic Framework to Ghana, a rapidly urbanizing LMIC in 1990, from under 4 million to 17.5 million in 2021 (57 percent of
West Africa. Current urbanization trends in Ghana present the total population) and is expected to reach 37.5 million (73
significant potential for achieving the economic dividends of percent of the projected total population) by 2050 (World Bank,
long-term low-carbon urban growth. Ghana first developed its forthcoming); UN DESA 2019). While urban growth has
response to the challenges of climate change in 2012 through contributed to significant economic gains, it has been
its National Climate Change Policy (NCCP), which had a strong characterized by unplanned and low-density urban expansion,
emphasis on climate resilience, and ratified the Paris along with a proliferation of informal settlements (housing 40
Agreement in 2016. It submitted an update to its NDC in 2021 percent of the urban population) (World Bank, forthcoming). If
(Government of Ghana 2021c) but currently doesn’t have an current sprawling expansion trends persist, Ghana could
LTS. The Government of Ghana has been proactive in pursuing double its built-up area by 2050 (World Bank Group 2022b).
climate change mainstreaming, and Accra, Ghana’s capital, Infrastructure development in most Ghanaian cities has not
recently published its CAP (Accra metropolitan Assembly kept pace with urbanization, and climate hazards such as high
2020), demonstrating strong initiative on climate. The country temperatures, droughts, and floods are increasing the
is currently updating its NUP. Ghana therefore offers an vulnerability of infrastructure assets. Urban areas, including
interesting case study for demonstrating the application of the urban centers, suburban and peri-urban areas, and dense and
Diagnostic Framework. semi-dense settlement clusters, generated 51 percent of
Ghana’s CO₂ emissions in 2015, compared to 40 percent in
The authors conducted the assessment primarily through a 1990 (Crippa et al. 2021). In addition, in 2015, urban areas
desk review of relevant national- and city-level plans, policies, contributed 43 percent of the country’s CH₄ emissions, driven
and documents, complemented by interviews with World Bank primarily by the waste sector. Under a BAU scenario, GHG
staff supporting the institution’s engagement with Ghana on emissions from urban areas in Ghana are expected to almost
climate change and urban development. City-level readiness quadruple by 2050 (World Bank Group 2022b).
was assessed by focusing on a sample of three Ghanaian
cities—Accra, Kumasi, and Tamale, each with distinct urban
characteristics and status of urbanization (see Box 6.1). Accra
Climate change mainstreaming in
and Kumasi were selected as representative of urban centers 6.3.2 Ghana’s national development planning
and budgeting
(population density over 1,500 inhabitants per km²) and
Tamale as representative of small urban areas (population
density over 300 inhabitants per km²), based on urban The National Development Planning Commission (NDPC) leads
settlement types defined by the United Nations Department of Ghana’s development planning, which is set out in Long-Term
Economic and Social Affairs (UN DESA 2019). The assessment National Development Plans (NLTDP) and National Medium-Term
offers preliminary observations about Ghana’s level of Development Policy Frameworks (MTDPF), with a 25- and four-
readiness both at national and city levels for undertaking year time horizon, respectively. The NLTDP guides the
vertically and horizontally integrated urban climate action. The preparation and implementation of MTDPFs, through which
case study also provides a set of recommendations that could Ghana implements its urban development policy agenda. Once
help the country address key gaps and barriers and advance an MTDPF is approved, all national entities such as government
to the next stage of readiness. ministries, departments, and agencies and subnational entities
such as metropolitan, municipal and district assemblies (MMDAs)
are required to prepare their development plans in accordance
with its provisions (World Bank Group 2022b). These plans form
Box 6.1: Urbanization status and key the basis for resource allocations from the national budget to
characteristics: Accra, Kumasi, and Tamale subnational governments.
Since 2017, the national government has been pursuing climate

Accra, located on the southern coast, is the change mainstreaming by reflecting national climate change
country’s capital and largest city, with a total goals in its development plans. NDPC is responsible for
population of approximately 2 million (4.9 ensuring that climate change issues are integrated into the
million in the Greater Accra Region). With an national development planning process and for coordinating
estimated annual population increase of 4 the preparation of sectoral and annual national progress
percent, Accra is one of the fastest-growing reports, which cover climate change-related issues (Climate
urban regions in West Africa. It is also Ghana’s Action Tracker 2021b).
economic powerhouse, contributing roughly 25
percent of the country’s GDP. Currently, 58 The Ghana Long-term National Development Plan 2018-2057
percent of the city’s population lives in informal (Republic of Ghana 2017) discusses the country’s climate
housing, however, electrification rates are change commitments and specifies climate-related strategic
among the highest in Africa, with 96.5 percent interventions including deepening the mainstreaming of climate
of people having access to electricity. change in development plans. It also prioritizes managing rapid
urbanization under one of its five long-term goals (Goal 3) and
Kumasi, located in southwestern Ghana, is identifies urban sprawl and resulting urban land expansion as a
the second-largest city. The total population key issue, emphasizing the need for strengthened land-use
of the metropolitan region is estimated at planning. However, this is not linked to its priorities on climate
nearly 3.5 million, and the urban population mitigation. Ghana’s National MTDPF 2022-2025 (Government
growth rate is similar to that of Accra. of Ghana 2021b) highlights addressing urbanization, urban
infrastructure deficits, and climate change among the country’s
Tamale, located in northern Ghana, is the medium-term priorities. It sets out medium-term objectives⁴⁵
third-largest city and an emerging investment through a dedicated focus area on climate variability and
hub in West Africa. The urban population is change and includes strategic interventions such as
estimated at around 700,000, with an annual accelerating the implementation of Ghana’s national climate
growth rate of 4.4 percent, making Tamale commitments through its NDC and mainstreaming climate
the fastest-growing city in Ghana. change in national development planning and budgeting
processes to meet these objectives. This focus area also
includes performance indicators on climate change.
⁴⁵ These include enhancing institutional capacity and coordination for effective climate action, enhancing climate change resilience, and reducing
greenhouse gases.
72
In addition, MTDPF identifies climate mitigation-related actions The budget guidelines require public institutions at national
as part of strategic interventions in sectors such as energy and and subnational levels to identify climate-relevant spending.
natural resources, but these are not linked to national climate Ghana’s Ministry of Finance (MoF) has developed Standard
goals. While subnational entities such as MMDAs are required Operating Procedures for tracking climate change
to mainstream climate change in MTDPFs for their jurisdictions, expenditures, and a climate tracking dashboard is expected
only about half currently have climate change-related plans. It is to disaggregate this information at subnational and sector
important to note that most of the actions in these plans focus levels. In addition, Ghana’s new Public Financial
on reducing vulnerability to climate hazards (Climate Action Management Strategy (2022-2026) (Government of Ghana
Tracker 2021b) and don’t directly reflect climate-related 2021d) identifies measures to support both adaptation and
priorities of the national MTDPF. Further, subnational entities mitigation, such as the disclosure of information on climate-
face numerous challenges in implementing their medium-term smart investments by the public sector and the introduction
plans and are particularly constrained in carrying out climate- of climate change into performance scorecards of MMDAs’
related interventions because of technical capacity constraints budget committees. To channel financing for climate action
(discussed in subsequent sections). to subnational levels, the NDPC has supported incorporation
of NDC goals in many national and subnational plans (World
Climate-informed resource allocations to city governments Bank Group 2022b). While resources allocated at
subnational level are not earmarked for climate action,
Fiscal transfers from the national government to subnational MMDAs are required to incorporate climate-related actions
entities are anchored in the national development planning in their MTDPs to acquire funding. For example, actions
process. While intergovernmental fiscal transfers are regular, identified in Accra’s CAP will be implemented by being
their volume can depend on changing political priorities embedded in the AMA’s MTDP, and budgetary allocations
(Fumey and Egwaikhide 2018). for climate activities will be made through the AMA’s budget
process (Accra Metropolitan Assembly 2020). The annual
Ghana instituted a CBT system in 2016 to track all on-budget performance assessment of MMDAs includes a climate
climate-related expenditures from key line ministries and change category. However, none of the indicators are
generate data to compare projected and actual spending. minimum conditions for receiving transfers.
Table 6.2: Climate change mainstreaming in Ghana’s national development planning and budgeting processes
Pillar 1
National level L/M/H
Do the country’s medium- and long-term (MT and LT) economy-wide and sectoral development plans reflect the
Partially
goals of its NDC and/or LTS and their implementation plans?
Do the country’s MT and LT economy-wide and sectoral development plans reflect low-carbon urbanization
considerations? No
City level
Are subnational entities (including cities) consistently developing MT and LT development plans? Yes
Are the climate-related goals and actions from national MT and LT economy-wide and sectoral development
plans cascading down to subnational development plans? Partially
Pillar 2
Across all levels
Are intergovernmental fiscal transfers regular and consistent? Partially
Do the budgeting processes associated with national and subnational development plans explicitly consider
Partially
the financing needs and main sources of financing for climate-related actions?
Does the country undertake climate tagging of budgetary spendings (to facilitate monitoring of climate
finance flows)? Yes
Do fiscal transfers targeted at urban spending categories include criteria for undertaking climate action (e.g.,
conditional transfers to city level)? No
Does the country’s budgeting process earmark funding flows for subnational-level climate action? No
73
Pillar 3
Across all levels
Are national development plans informed by development scenarios that reflect low-carbon urbanization No
trends?
Do the systems at national and subnational levels for tracking progress on development goals include climate-
Yes
related performance indicators?
Does the climate MRV system ensure that reporting timelines for tracking climate actions are consistent with
No
budgeting processes and timelines?
Low-carbon growth considerations The draft NUP also specifies the relevant government entities
6.3.3
in Ghana’s national urban agenda that are expected to collaborate in implementing these activities.
The M&E framework for the draft NUP is yet to be developed, so
it is unclear if and how the performance indicators for the
The Government of Ghana recognizes the role of activities being implemented under these strategies are linked
urbanization in driving economic growth. The National Urban to relevant actions in Ghana’s NDC. Lastly, the draft NUP
Policy Framework adopted in 2012 (Government of Ghana mentions that financing policy implementation will be the
2012) and the National Spatial Development Framework responsibility of the national government through national
(NSDF) 2015-2035 (Government of Ghana 2015) (see Box budgetary and other appropriate support.
6.2) are the two key policy frameworks guiding urban
development planning at national level.
Ghana is in the process of adopting an updated NUP, Box 6.2: The National Spatial Development
‘National Urban Policy and Strategies 2023-2032 Framework
(Government of Ghana, forthcoming).⁴⁶ This draft NUP has
an overarching vision of prioritizing inclusive, safe, resilient,
and sustainable urban settlements. It commits to aligning The NSDF 2015-2035 was developed by the Land
and localizing Ghana’s commitments under the Paris Use and Spatial Planning (LUSP) Authority under
Agreement (e.g., NDC commitments). While it doesn’t outline the provisions of the LUSP Act in collaboration with
specific low-carbon urbanization scenarios, one of the 10 NDPC. The NSDF is informed by Ghana’s 2010-
proposed policy objectives is dedicated to climate change 2013 MTDPF, which emphasized the need to
and aims to promote climate resilience and environmental achieve well-planned and spatially integrated cities
quality of urban life. Climate change aspects are also and highlighted the importance of linking
reflected in several other policy objectives and considered in spatial/land-use planning and socio-economic
a comprehensive manner in those focused on improving development objectives at all levels of government.
urban land-use planning and management and promoting NSDF, which is centered on the Accra and Kumasi
access to urban infrastructure and services. It is unclear if regions as key growth points, recognizes that rapid
climate-related considerations, particularly those concerning urban growth in these city regions is leading to
mitigation, are underpinned by dedicated urban diagnostics. sprawl and recommends the adoption of spatial
Nevertheless, the draft NUP has identified 42 strategies to development frameworks. TOD is noted as an
achieve these policy objectives, including several specific approach that should be adopted to promote
measures that will contribute to actions identified in Ghana’s compact, mixed-use development and to reduce
NDC relevant for urban areas such as: (i) improve energy private vehicle use and transportation congestion.
efficiency in construction, operations, and maintenance of This approach is primarily driven by priorities such
public and private facilities in urban communities and (ii) as promoting economic development, improving
strengthen capacities at all levels to promote enforcement of connectivity, and protecting ecological
regulations and private sector participation along the waste assets.NSDF does not address its contribution to
management chain. The activities identified to facilitate the low-carbon urban development.
implementation of these strategies comprise wide-ranging
and specific actions that can contribute to climate mitigation Source: Government of Ghana 2015.
in key urban sectors including public transportation,
buildings, waste, and land use.
Table 6.3: Recognition of low-carbon growth priorities in Ghana’s national urban agenda
Pillar 1
Does the country have an overarching urban development strategy or plan (e.g., NUP)? Yes
Does it include climate mitigation goals and measures (e.g., climate mitigation measures from the NDC
Partially
and/or LTS targeted to urban areas, city-level climate mitigation efforts)?
City level
Are the climate-related goals and actions from the urban development strategy or plan (e.g., NUP) cascading Partially
down to the city level?
⁴⁶ The draft National Urban Policy and Strategies 2023-2032 (2023 NUP) was reviewed for this report.
74
Pillar 2
National level
Does the urban development strategy or plan include a guiding framework for resource allocation to cities to No
undertake climate mitigation actions (e.g., performance-based grants, dedicated climate program)?
Pillar 3
Across all levels
Does the urban development strategy or plan reflect country-specific BAU and low-carbon urbanization No⁴⁷
scenarios (e.g., assessment of carbon footprint of urban areas, feasible mitigation options)?
Does the urban development strategy or plan contain monitorable climate mitigation actions with
No⁴⁸
performance indicators?
Mitigation priorities and targets for Ghana’s updated NDC recognizes the key role that cities/local
6.3.4 urban areas in Ghana’s national climate governments must play in delivering NDC targets and includes
change strategies mitigation measures related to expanding sustainable inter- and
intra-city transportation modes; promoting energy efficiency in
National climate change strategies homes, industry, and commerce; and improving solid waste
management. It also indicates a top-down approach to NDC
Adopted in 2012, Ghana’s NCCP was designed within the implementation, in which NDPC is mainstreaming NDC targets
framework of national sustainable development priorities and into sectoral and district plans and their annual progress reports.
aimed to mainstream climate change into policies and sectoral
activities to achieve sustained growth (Cobbinah et al. 2019). Ghana has developed an NDC financing strategy, which includes
NCCP has a strong emphasis on climate resilience.The role of budget estimates for most actions that need to be implemented
local governments in its implementation has been minimal, with in urban areas but doesn’t specify their funding sources
key responsibilities being limited to disaster risk management (Government of Ghana 2021a). While Ghana has the institutional
and energy conservation in buildings (Tait and Euston-Brown structures to mobilize and manage climate finance, to date, the
2017). As mentioned above, Ghana ratified the Paris government has had difficulty raising sufficient funds for climate
Agreement in 2016 and submitted an update to its NDC in 2021 action (Climate Action Tracker 2021b).
but hasn’t yet developed an LTS. The country doesn’t have a
comprehensive legislative framework on climate change but As such, through its efforts to mainstream national climate
has produced a series of plans grounded in NCCP and change goals in development planning, Ghana’s national
numerous separate regulations and policies across several government has created the enabling environment for city-
sectors. Ghana’s NDC targets are not currently anchored in the level climate action. However, there are gaps in its effective
law (Climate Action Tracker 2021b; World Bank 2022). implementation, as discussed in the previous section.
Table 6.4: Urban climate action in Ghana’s national climate change strategies
Pillar 1
Do the NDC, LTS, or other national or sectoral climate change strategies include low-carbon urbanization Partially
considerations?
Does the country have a strong enabling environment for facilitating city-level mitigation action? Partially
Is the country on track to implement its climate change strategies? Partially
Pillar 2
National level
Do the funding strategies for the NDC, LTS, or sectoral climate strategies identify specific financial needs Yes
associated with the climate mitigation measures to be implemented in urban areas?
Is the country successfully mobilizing finance to fund its national or sectoral climate change measures? No
Are climate finance flows mobilized by the national government channelled to support urban climate
No
mitigation measures?
⁴⁷ This information could not be verified.

⁴⁸ The M&E framework for the updated draft 2023 NUP is expected to be developed.
75
Pillar 3
National level
Do the NDC or other MT national or sectoral climate change strategies reflect low-carbon urbanization
aspects (e.g., GHG emissions drivers in urban areas, risks of carbon lock-in, impacts of city-level climate No
interventions)?
Does LTS incorporate country-specific low-carbon urbanization scenarios (e.g., urban-centric technological,
N/A
behavioral, land-use changes)?
Do the NDC or other MT national or sectoral climate change strategies include reporting requirements
No
for cities?
City-level climate action planning: Accra

waste management, energy efficiency in buildings, transportation
AMA is the only subnational entity in Ghana to have systems, and land-use and physical planning. This is largely in
prepared a city-level GHG emissions inventory and climate line with city-specific mitigation actions in Ghana’s NDC.
action plan.⁴⁹ Accra’s Climate Action Plan (CAP) 2020 -
2025 (Accra Metropolitan Assembly (2020) sets a GHG While Accra’s CAP doesn’t include quantitative performance
emissions reduction target of 73 percent below BAU by indicators, AMA will monitor and report on progress achieved
2050 (30 percent by 2030). Accra’s GHG emissions on climate actions identified in CAP to the national
reduction target for 2030 aligns with the level of ambition government and report GHG emissions on an annual basis to
set out in Ghana’s NDC and goes further by establishing a CDP. Progress reported to the national government is
mid-century target. To achieve these targets, Accra has expected to feed into the national MRV of climate actions.
identified concrete actions to reduce GHG emissions in key Kumasi and Tamale have not yet published their own climate
sectors where it has a mandate to operate, comprising solid action plans or strategies.
Table 6.5: Climate action planning in Accra
Pillar 1
City level L/M/H
Has the city developed an MT climate change action plan that includes mitigation aspects? Yes
Has the city developed a long-term low-carbon urbanization vision? Yes
Pillar 3
City level
Is the city-level climate mitigation action plan underpinned by high-quality data and diagnostics (e.g., a GHG
Yes
inventory, GHG emissions reduction scenarios, impacts of city-level climate interventions)?
Does the city-level climate mitigation action plan include monitorable actions (e.g., GHG emissions reduction Partially
targets or mitigation actions with KPIs)?
Is the progress on climate mitigation actions being reported to national climate planning entities? Yes
Decentralization, intergovernmental implementing climate action are often insufficient, resulting in

6.3.5 coordination, and communication on a sizeable gap between MMDAs’ plans and actual funds
climate action⁵⁰
received and used (World Bank 2022).
Long-standing decentralization reforms in Ghana have given In recent years, the government has promoted PPPs to
MMDAs a wide range of functions and responsibilities, bridge the financing gap for urban infrastructure and basic
including generating OSR. However, in practice, national services. In 2011, the country adopted its first national PPP
departments retain supervisory powers over several policy. A screening system established for PPP preparation
development planning and budgeting processes. Most city includes considerations for climate change and emphasizes
governments in Ghana have limited fiscal autonomy. About that PPPs should consider low-carbon and climate-resilient
80 percent of MMDAs’ budgets are financed by transfers infrastructure, utilizing climate data analytics (World Bank,
from the national government and donors through the forthcoming). The participation of cities in PPPs has been
budgetary and resource allocation processes set up for limited. A PPP law adopted in 2020 made provisions for
MTDPFs, and the remaining 20 percent is financed through MMDAs to make PPP arrangements, yet no city has used
OSR (Otoo and Danquah 2021). In this context, the funds for PPPs for financing investment projects.
⁴⁹ C40 supported the development of Accra CAP 2020-2025.
⁵⁰ This section discusses readiness characteristics across the integrative solutions “Empowering city governments and strengthening intergovernmental
coordination in policy areas with overlapping mandates” and “Enhancing communication between national- and city-level on climate action.”
76
Since 1990, only 30 PPP projects have been financed, for a total At the same time, CAP outlines the need for financial support to
investment of almost US$ 10 billion, with all PPP transactions enable AMA to develop the second five-year CAP in 2024.
managed by a PPP Advisory Unit within the Public Investment
and Assets Division of the MoF (MOFEP of Ghana 2020). The extent to which Accra’s MRV and tracking processes for
climate action are currently aligned with corresponding
When MMDAs have functions that overlap with other levels of processes at national level is unclear. A recent analysis of
government, they have the primary mandate to undertake climate change laws in Ghana (World Bank 2022) highlights that
those functions if they fall within their jurisdiction. Roles and the institutional arrangements for coordinating climate action
responsibilities for climate change planning and implementation monitoring and reporting activities are not embedded in the
are shared across various government levels, including country’s legal and regulatory frameworks. This can make it
MMDAs, and the country has clear institutional structures to challenging for entities to coordinate on planning and
facilitate vertical and horizontal coordination between entities. implementing climate commitments, especially with changing
However, these climate governance structures are not fully political leadership and priorities. While Ghana seeks to
operational because of weak coordination between entities implement its NDC goals at the subnational level through
(Climate Action Tracker 2021b). For example, legal and policy MTDPFs, the current indicators for tracking performance and
frameworks such as the LUSP Act include provisions for inter- impacts of climate-related actions in these plans need
jurisdictional coordination or collaboration, yet these are not improvement and don't cascade down. The national climate
functioning in practice, affecting implementation of functions action monitoring and reporting function in Ghana is assigned to
with shared mandates such as urban transportation (World the Environmental Protection Agency (EPA), which mainly
Bank, forthcoming). Nevertheless, Accra’s CAP seeks to focuses on ensuring the country's compliance with UNFCCC's
overcome these gaps by including considerations for alignment MRV requirements. In the absence of applicable climate-related
with national climate planning processes. Specifically, AMA performance indicators in MTDPFs, the Accra CAP includes its
aims to link its CAP revisions and updates with the five-year own requirements for tracking climate action and mobilizing
cycle of Ghana’s NDC updates. external climate finance for its implementation.
Table 6.6: Decentralization and intergovernmental coordination and communication on climate action in Ghana
Pillar 1
Across all levels L/M/H
Do city governments have the regulatory authority to undertake climate action in functions that are within their
Yes
administrative mandates?
For urban development functions overlapping or shared with other government levels, do city governments
Partially
have clearly defined roles and responsibilities for climate action?
Is there a mechanism or framework for coordination between city, state, and national governments on
Yes
policy and planning processes related to climate change?
In the absence of a coordination framework, are climate-related efforts consistently communicated between
No
different levels of government?
Pillar 2
National level
Does the country facilitate cities’ access to domestic and international climate finance to support them in Partially
implementing climate functions and mandates?
Are cities communicating about their financing needs for existing and planned climate actions to the national
N/A
entities responsible for NDC implementation and resource allocation process?
City level
Do city governments have the authority to generate OSR? Yes
Do city governments have the mandate to mobilize financing from private sources (e.g., capital markets, debt-
Yes
based instruments, PPPs)?
Pillar 3
Across all levels
Are diagnostics efforts supporting climate policy processes (e.g., development of NDC, LTS, or other No
climate strategies) aligned across national and city levels?
Are MRV approaches across different levels of government and reporting needs aligned? No
77
Does the country have integrated MRV systems, including GHG emissions databases, similar No
methodologies, and reporting processes?
Does the country have a mechanism or framework for national-level entities and city governments to communicate Partially
on GHG emissions data, diagnostics and MRV, including tracking climate actions and finance flows?
Organizational structures and functions development partners, the private sector, civil society
6.3.6 organizations, and other stakeholders. As discussed above,
dedicated to climate change
NDPC is responsible for incorporating NDC targets into
sectoral and MMDA plans, and EPA is responsible for
Ghana has clear organizational structures and well-defined monitoring and reporting on NDC implementation (World
roles and responsibilities on climate change at national level. Bank 2022). Several MMDAs have also established climate
The Ministry of Environment Science, Technology, and change units. For instance, AMA’s Resilience and
Innovation (MESTI) is responsible for climate change issues and Sustainability Unit leads on the climate action agenda and is
coordinates the NDC preparation process. MESTI houses the responsible for supporting various local departments in
National Climate Change Committee, which consists of MMDAs, achieving climate goals.
Table 6.7: Organizational structures and functions on climate change in Ghana
Pillars 1, 2, & 3
Are there organizational structures with formally defined roles and responsibilities at each level of government
to facilitate climate action planning, implementation, and tracking? Partially
City level
Are city governments adequately staffed and resourced with personnel who have clear roles and
Partially
responsibilities on climate change?
Stakeholder engagement, collaboration, inputs are reflected in policy is not indicated in relevant
6.3.7 documents. The government also has numerous initiatives on
and knowledge sharing⁵¹
disseminating knowledge about climate change, largely
targeted to the public to enhance awareness. Lastly, the
Ghana’s national government recognizes the importance of government is taking steps toward developing knowledge
engaging stakeholders in national climate policy planning and infrastructure to support climate policy planning through its
regularly conducts stakeholder consultations when developing Council for Scientific and Industrial Research. However, the
reports and planning documents. More broadly, NDPC seeks work undertaken by this agency is currently limited (Climate
inputs from various actors on MTDPFs but the extent to which such Action Tracker 2021b).
Table 6.8: Stakeholder engagement and collaboration in Ghana’s climate planning
Pillars 1, 2, & 3
Across all levels
Stakeholder engagement
Are there mechanisms that facilitate engagement of relevant stakeholders on climate action planning
(e.g., across various government level, private sector, academia, local communities)? Partially
Collaboration and sharing knowledge, tools, and resources:
Are tools, resources, and technical capacities to support climate change policy processes shared across
different levels of government and with other stakeholders (e.g., through technical workshops, Partially
consultations processes, knowledge-sharing platforms)?
Do national-level entities and city governments effectively collaborate on data, diagnostics, and
reporting tools, including through sharing expertise on climate action (e.g., through quality assurance No
and guidance, co-creation of low-carbon development pathways)?
⁵¹ This section discusses readiness characteristics across the integrative solutions “Promoting stakeholder engagement” and “Promoting collaboration and
sharing knowledge, tools, and resources.”
78
As discussed in section 6.3.5, the capacity of Ghana’s local

Technical and financial capacity for governments to raise OSR from taxes, levies, and other
6.3.8
climate action in Ghana charges is quite limited, with all three cities highly dependent
on the national government for financing climate action
implementation. Accra’s CAP indicates that its implementation
Ghana’s national institutions responsible for coordinating will be financed through a combination of OSR, transfers from
climate action seem to have sufficient capacity, staffing, the national government, PPPs, and donors (e.g., international
and budget to perform their statutory tasks. For instance, climate finance). However, even if Accra demonstrates
Ghana is one of the few developing countries that has stronger technical capacity compared to Kumasi and Tamale,
regularly submitted National Inventory Reports to UNFCCC, it still relies on the national government to unlock finance,
which demonstrates adequate capacity for regular GHG including from development partners.
inventory reporting (Climate Action Tracker 2021b).
However, most city governments face institutional and While Ghana has the basic structure for MRV, the 2019 NDC
financial constraints in undertaking core urban implementation plan identified the need to upgrade the existing
development functions such as physical planning and domestic MRV system to include the national GHG inventory,
service provision and have limited capacities to undertake climate action accounting, progress on achieving NDC targets,
climate-related functions (World Bank, forthcoming). For and tracking of financial and technical support received (Republic
instance, local governments struggle to mainstream of Ghana, MESTI 2019a). MESTI had also identified several
climate-related actions into their plans because of limited barriers to the implementation of Ghana’s Climate Ambitious
resources and lack of technical expertise on climate Reporting Program, which aims to support the MRV system,
change (Climate Action Tracker 2021b). While AMA has including limited funds, low visibility of MRV results for policy-
mobilized resources to develop basic structures and related decision making, and a lack of access to good-quality
establish dedicated capacity to plan and implement climate data (Republic of Ghana, MESTI 2019b). Overcoming these
action, Kumasi and Tamale rely primarily on the national barriers at the level of the national MRV and tracking system and
government to identify climate action priorities and further strengthening cities’ diagnostic, monitoring, and reporting
implement climate change actions and have achieved capacities are important prerequisites for aligning MRV systems
substantially less progress in integrating climate change at different levels to support integration of low-carbon
into city functions, policies, and investments. urbanization considerations into national climate policies.
Table 6.9: Technical and financial capacity to support urban climate action in Ghana
Pillar 1
Do relevant entities have sufficient experience in climate action planning and implementation? Partially
City level
Do city governments have sufficient capacities to undertake urban planning and service provision, and do they No
assimilate climate-related functions into existing roles and responsibilities?
Pillar 2
City level
Do city governments have a strong track record of designing, managing, and implementing climate mitigation
No
plans and investments?
Are city governments funding a sizeable share of their priorities through OSR? No
Are city governments successfully attracting capital and mobilizing financing from private sources? No
Pillar 3
Across all levels
Are there sufficient technical capacity and resources, including dedicated funding, to support climate- No
related diagnostics, tracking, and reporting?
Are existing MRV systems ready to support alignment and/or integration of city-level inventories and No
reporting processes (including to ensure consistency of scope and timelines with NDC/LTS policy processes)?
City level
Do city governments have technical capacity to use urban diagnostics tools to support climate policy
processes in their jurisdictions and across various levels of government (e.g., including NDC and LTS No
development and implementation)?
Do city governments have technical capacity to comply with MRV and climate action tracking requirements No
(e.g., developing GHG inventories, setting up M&E systems).
79
Ghana should strive to incorporate low-carbon urbanization

Assessment outcome: Ghana’s readiness considerations underpinned by dedicated urban diagnostics in
6.3.9 its efforts to develop an LTS. This would further elevate the role
for urban climate action integration
of rapidly growing urban areas in achieving the country’s long-
term vision for decarbonized development. It can also provide
This section summarizes the preliminary outcomes of the an enhanced understanding of the specific contributions of
assessment undertaken for this report on Ghana’s current level urban mitigation actions to national climate goals and the
of readiness to develop and implement urban climate action support required to facilitate their implementation.
that is integrated in its national climate change strategies. At
city level, these outcomes are based on the assessment of Based on the assessment of three representative cities, Ghana
three cities that are representative for the purposes of this demonstrates ‘low’ readiness for climate action at the city
diagnostic. It also provides a set of recommendations that level, with Accra being an outlier. Lack of climate-related
could help the country address key gaps and barriers and technical expertise and resource limitations at local level
move to higher stages of readiness. hinders city governments’ ability to undertake climate
mitigation planning. In this context, cities may also struggle
At national level, Ghana demonstrates ‘moderate’ readiness. with integrating local data on GHG emissions and priority
The country has made significant efforts to lay the groundwork climate actions into national climate policy processes and the
for mainstreaming its national climate goals and targets into its MRV system. Despite Accra’s greater implementation
national and subnational development plans and sectoral readiness, there is a need for the national government to
policies and continues to deepen mainstreaming. Ghana’s augment the city’s efforts to access finance and build capacity
updated draft NUP reflects its climate goals, and the updated to deliver climate-related projects and programs. For smaller
NDC explicitly considers the role of urban areas in meeting its cities with more acute capacity gaps, a starting point could be
targets and includes priority measures that cities should to follow Accra’s example and develop their own climate
implement. Enacting the country’s climate targets and creating action plans that are aligned with national climate change
institutional structures through dedicated climate change laws is targets and policy objectives and include robust climate action
an important long-term priority (World Bank 2022). This can help tracking systems. Further, given their low levels of fiscal
improve coherence between the climate policy agenda and autonomy, Ghanaian cities need to work collaboratively with
sectoral policy agendas and support effective functioning of the the national government to identify financing priorities for
MRV system (including gathering relevant data for climate climate action and mobilize climate finance from domestic and
reporting), which will strengthen the implementation of NDC, international sources. To further empower local governments
particularly at subnational level. The M&E framework that will be to implement their climate-related functions, the national
developed to track the implementation of the draft NUP government should strive to mobilize technical and financial
provides an opportunity for harmonizing the indicators for support, including by strengthening collaboration and sharing
tracking the NUP’s climate mitigation actions with those tracking of climate-related knowledge and technical resources across
the relevant actions in Ghana’s NDC, thereby enabling the government levels and between cities. It is also important to
country’s urban areas to systematically demonstrate their improve local government representation in sectoral planning
contribution to national climate goals. Ghana has established and implementation strategies and strengthen existing
comprehensive structures to facilitate horizontal and vertical engagement systems to facilitate coordination between
intergovernmental coordination on climate. However, there is a national and subnational entities on shared roles and
need to strengthen coordination between entities to ensure mandates. As indicated in Accra’s CAP, in areas with
their effective functioning within these institutional structures. overlapping mandates such as energy and transportation
Additionally, since several measures related to low-carbon sectors, coordination between entities is key to achieving the
urban growth need to be undertaken at the metropolitan scale city’s mitigation targets. By enabling intergovernmental
(e.g., curbing urban expansion, improving inter-city connectivity), coordination, the national government can strengthen the
inter-jurisdictional coordination at this level should also be ability of local governments to undertake ambitious climate
strengthened (World Bank, forthcoming). action and contribute to Ghana’s national climate objectives.
Accra Ghana © David Attricki / Pexels
80
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Harnessing Low-carbon Urbanization for Climate Action

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Executive Summary and Recommendations 07

°C Degree Celsius M&E Monitoring and evaluation

CAP Climate action plan MDB Multilateral Development Bank

CBT Climate budget tagging Ministry of Environment Science,

European Bank for Reconstruction and NDC Nationally Determined Contribution

GHG Greenhouse gas NUP National Urban Policy

Global Protocol for Community-scale Organization for Economic Co-operation

GTP Growth and Transformation Plan OSR Own-source revenue

HIC High-income country

LT-LED Long-Term Low Emissions Development WRI World Resources Institute

Source: Adapted from UN ESCAP 2020.

Cities and other subnational actors can bring valuable

Delivering climate Prioritizing early Enhancing climate Mainstreaming

requ ly with Mity to

To enhance evidence-based policy processes, a dedicated

This is enabled when: Appropriate institutional frameworks and governance

Figure ES.4: Integrative solutions across the three pillars

Integrated policy Evidence-based policy

1 Mainstream climate change in national development planning and budgeting processes

2 Integrate low-carbon growth considerations in the national urban agenda

3 Explicitly consider urban climate action in national climate change strategies

4 Empower city governments and strengthen intergovernmental coordination

5 Enhance communication between national- and city-level on climate action

6 Establish organizational structures & functions within each government level

7 Promote stakeholder engagement

8 Promote collaboration and sharing of knowledge, tools and resources

9 Enhance technical and financial capacity

Climate change mainstreaming in national

Economy-wide development planning that reflects low-carbon

Integration of low-carbon urbanization

First, this integrative solution can strengthen horizontal

Explicitly including climate mitigation priorities

NDCs or LTSs that integrate low-carbon urbanization priorities

Empowering city governments and

Effective climate governance can be achieved by (i) delegating

Enhancing communication on climate action

Enhanced communication on urban climate action across

Clear organizational structures with well-defined

Climate change-related functions are usually not clearly attributed

Undertaking stakeholder engagement ensures

Multi-level stakeholder engagement is an integral part of

Collaboration and sharing of knowledge,

Tools and resources to mainstream climate change in policy

There is an urgent need to enhance cities’

Technical capacity to design and implement climate policies and

This report identifies numerous areas that

Support for integration efforts should be prioritized in

Promoting knowledge sharing and capacity strengthening

Tailoring urban diagnostic tools and models to policy

Impact of urbanization trends on Urbanization in these regions will be characterized by a

b. Share of global total (%) CO₂ emissions generated in cities

Figure 1.2: Urban population 2020 to 2050

0 500 1000 1500 2000 2500 3000 3500 4000

Source: UN Habitat 2022a Urban Population (million)

SSA is expected to experience some of the largest urban land

Megacities of 10 Large cities of 5 to Medium-sized cities of Cities of 500,000

Cities of 300,000 Urban settlements All settlements with more than