Because cities are essential to climate mitigation and uniquely vulnerable to climate impacts, there are compelling and wide-ranging reasons for them to invest in low-emissions and “climate-smart” infrastructure. However, cities face various barriers to implementing such changes, including pressure to address infrastructure deficits and improve basic services. In this context, the authors explore how national development banks (NDBs) can support climate-smart investments and address cities’ larger systemic challenges in their efforts to contribute to the Paris Agreement goals and broader development objectives.

The authors emphasize the comparative advantages of NDBs in supporting climate-smart urban infrastructure. They recommend several opportunities to enhance NDB support for such investments. Some of these recommendations are directed at NDBs, while others require action by national and local governments, bilateral cooperation agencies, and multilateral development banks or international financial institutions.