This paper, produced through the New Climate Economy Cities Research Programme, first examines the importance of the third pillar of the 3C model: coordinated governance. Governance will be particularly crucial in many emerging cities where current levels of capacity are often insufficient for implementing the policy programmes needed to move towards compact urban growth and deliver effective, connected infrastructure. Four elements of coordinated urban governance are essential: (1) multi-level governance with effective coordination of national, regional and city policies; (2) city leadership and financial authority; (3) transparency and accountability; and (4) policy integration at the local level. Municipal governments can also use international and regional networks of cities to transfer knowledge and innovation more effectively. Furthermore, this paper reviews the most promising policy tools for delivering the 3C model. These include: (1) planning policy instruments; (2) pricing instruments; and (3) finance mechanisms.
