To realise the C40 Mayors’ Agenda for a Green and Just Recovery, cities must identify and prioritise high-impact policies and mobilise the financial resources to pay for them. This will require navigating financial challenges that have been aggravated by the COVID-19 pandemic.
To steer cities through the myriad financing options open to them, C40 Cities and Climate Finance Advisors (CFA) have compiled a finance taxonomy of on- and off-budget resource mobilisation strategies and sources, as well as a broader decision-support framework. A shortlist of potential policy choices for the eight action areas of the Global Mayors COVID-19 Recovery Task Force (MTF) agenda shows there are multiple sources and mechanisms for delivering on chosen policy options. Some strategies involve the direct use of city government funds, while others draw on indirect resources through third parties, often by tapping the capital markets or attracting private investment. There are advantages and disadvantages to both direct and indirect sources, some of which have been magnified by the COVID-19 pandemic.