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At the Global Climate Action Summit, Supporting Institutions demonstrate how they are supporting local climate action.

At the Global Climate Action Summit, the 42 financial institutions participating in the Climate Action in Financial Institutions Initiative released a Joint Statement demonstrating how they are moving from commitment to action – both individually and collectively – in supporting local climate action.

During the Global Climate Action Summit held in San Francisco, Rémy Rioux, CEO of the French Development Agency (AFD) and Chair of the International Development Finance Club (IDFC) announced the release of the Joint Statement of the Supporting Institutions of the Climate Action in Financial Institutions Initiative:

 “Financial institutions play a pivotal role in scaling up and directing investments and assets that are necessary for transitioning to low-carbon, resilient economies. The integration of climate considerations by the financial community at large, as promoted by the Climate Action in Financial Institutions Initiative, is an absolute necessity to reach the objectives of the Paris Agreement. In so doing, the initiative’s Supporting Institutions are increasingly focusing on supporting subnational and city-level actors, who are fundamental drivers of climate-smart and sustainable development.” Said Rémy Rioux, CEO of the French Development Agency (AFD) and Chairperson of the International Development Finance Club (IDFC).

Aligned with the objectives of the ‘Talanoa Dialogue’, the Statement takes stock of over 40 new and existing commitments, programs and efforts of financial institutions supporting local climate action.

Institutions are advancing four priority areas for the mobilization of finance and technical support, with a special focus on supporting subnational climate action. These including the vertical integration of Nationally Determined Contributions (NDCs) at the city and subnational level; municipal technical assistance and financing; strengthening city- and subnational- capacity for resilience; and subnational climate-focused financial instruments and products.

 “Cities are a key entry point for effective NDC implementation and can support higher ambition” says Amal-Lee Amin, IDB Chief of the Climate Change and Sustainability Division. “The concept of vertical integration will help align countries NDCs and city climate action plans with a view to increasing finance and other support for climate related investments at the city level.”