September 2014: A handbook published by the UN Environment Programme (UNEP) on climate finance for mitigation in cities and buildings underscores the urgency of developing methods to help all cities gain access to climate finance while maximizing related social, environmental and economic co-benefits. Given that cities account for over 75% of energy-related greenhouse gas (GHG) emissions, the publication calls for the 2015 climate agreement to inspire cities into action. Cities, in turn, will need to support leaders and scale up mitigation projects based on best practice and sharing of lessons learned.

The handbook, titled ‘Climate Finance for Cities and Buildings: A Handbook for Local Governments,’ notes that, while cities and buildings bear significant emission reduction potential, they often lack the knowledge and financial resources for realizing it. Responding to this need, the handbook seeks to provide a resource for city managers and other stakeholders in their consideration of climate change mitigation strategies and other sustainable development goals. It aims to raise awareness among local stakeholders on the potential for climate finance in the built environment, and help local governments use climate finance mechanisms for increasing energy performance, improving resource efficiency and supporting wider climate strategies while creating additional revenue.

The handbook provides an overview of the international context driving climate finance mechanisms, and considers generic challenges and opportunities relating to mitigation in cities and buildings. It also presents tools and methodologies to measure GHG emissions developed to support climate finance in the built environment. A section is dedicated to measuring, reporting and verification (MRV) and its importance to climate finance. The manual concludes with a description of a number of relevant climate finance mechanisms, such as the different options under the Clean Development Mechanism (CDM) and Nationally Appropriate Mitigation Actions (NAMAs), and proposes next steps for urban climate finance.

On next steps, the manual calls for prioritizing, on global and local political agendas, actions including: ensuring a prominent place for cities in climate negotiations and access to climate finance; advocating for global support for carbon mechanisms suitable for the urban context; convincing governments to use policy tools aimed at reducing the climate change impact of cities and buildings; and establishing a robust MRV framework for GHG mitigation in the urban context. [Publication: Climate Finance for Cities and Buildings: A Handbook for Local Governments][UNEP Publications Webpage]