Regions and cities play a key financial role in the carbon-neutral transition and the global response to climate change. This is, in large part, due to their jurisdiction over crucial adaptation and mitigation-relevant policy areas such as land-use planning, zoning, waste management, transport, housing development, and more. However, despite this recognition, there is a lot that we do not know about their financial role.
Given the urgency of the climate crisis, it is more important than ever to bridge this knowledge gap and improve our understanding of the financial role of subnational governments in the transition. In doing so, this will enhance our ability to track the progress regions and cities are making towards achieving the Paris Agreement commitments, and other green objectives, and to identify areas where further action is needed to align their expenditure and investment with their climate goals and mobilise additional sources of finance.
Since 2020, the OECD and the European Commission (DG REGIO) have been engaged in a joint project to improve the understanding of the financial role of regions and cities in the carbon-neutral transition by enhancing the tracking, measurement, and mobilization of subnational public climate finance. The Financing Climate Action in Regions and Cities conference, taking place on 22 June 2022, will present the outputs of this project and the newly created Subnational Government Climate Finance Hub. It will also convene numerous stakeholders, international organizations, national and subnational governments, and academics to answer key lingering questions about the financial role of subnational governments in the carbon-neutral transition:
- How much are subnational governments spending and investing on climate change adaptation and mitigation?
- How has their climate-related spending and investment evolved over time?
- What public revenue streams are available to subnational governments to fund and finance their climate action? How can these sources be scaled-up?
- How to better align spending, investment, and revenue raising decisions of subnational governments with their green objectives?
- How subnational green budgeting can help mobilise additional public and private sources of finance, including green bonds?
This hybrid event will address these themes in five sessions led by keynote speakers from the OECD, the European Commission, national and subnational governments, and climate finance experts and practitioners from other institutions.