This study is the first of its kind to explicitly develop a methodology for tracking and measuring climate and environment-related expenditure and investment in cities and regions across the OECD. The results revealed that regions and cities play an important role in financing climate action but more assistance from national governments is needed to mobilise additional public and private sources of funding. The study also highlighted a need for improved data collection and statistical systems to track the alignment of public financial flows with climate objectives, including at the subnational level, as called for in the Paris Agreement.

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This joint European Commission and OECD project builds on the previous study to further refine the methodology for tracking and measuring subnational climate and environment-related spending and investment. The project has three main streams of work:

• A literature review of existing tracking initiatives
• An online observatory for subnational government climate finance
• Two cases studies (one city, one region) consisting of a green budgetary analysis and the creation of a Green Fiscal Strategy and Action Plan

This project is conducted through partnership with Cities Climate Finance Leadership Alliance (CCFLA) and Leadership for Urban Climate Investment (LUCI). The methodology and results of the study will be disseminated to a global audience.

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Forum on Green Finance and Investment 2020

High-level Plenary Session on "Accelerating greener investment: The role of taxonomies, asset managers and institutional investors, regions and cities"

As part of the High-level Plenary on Accelerating Green Investment, our team organised and facilitated a session on the role of cities and regions in financing a green and sustainable post-COVID recovery. Bringing together elected officials and experts from development finance institutions and think-tanks, the session identified three key aspects that decision-makers should consider when designing recovery plans:

• Subnational governments need to be included in the design and implementation of the plans as they are at the forefront of tackling both climate change and the pandemic.
• Subnational governments requires enhanced technical and advisory assistance, in addition to financial resources, to effectively scale-up their green activities.
• Governments of all levels need to ensure that recovery plans fully address and integrate social issues to mitigate the potential impacts of the plans on vulnerable populations.

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