"Urban Talks Towards COP31" Series Concludes the Second Session Titled "From Commitment to Action: Local Climate Finance"
Structured around the key focus areas of the COP31 Action Agenda, the session focused on how climate action plans prepared by local authorities can be transformed into implementable, measurable and bankable projects.
The programme opened with remarks by MMU Secretary General M. Cemil Arslan, highlighted the importance of local governments' access to finance and international cooperation in supporting climate-resilient cities, Moderated by MMU Sustainability and Climate Change Center Director Merve Ağca, the session featured Hasan Fehmi Tığlı, Head of the Financial Institutions and Investor Relations Department at İLBANK; Begüm İrhan, Senior Banker for Sustainable Infrastructure at the European Bank for Reconstruction and Development (EBRD); and Dr. Melis Aydemir, Senior Project Manager for the Municipal and Social Infrastructure Sector at the French Development Agency (AFD).
The programme highlighted the opportunities that COP31’s emphasis on implementation and acceleration presents for local authorities. Discussions focused on strengthening the link between national climate targets and local investments, transforming municipalities’ Sustainable Energy and Climate Change Action Plans (SECAPs) and local climate action plans into investable project portfolios, the level of preparedness expected from municipalities by international financial institutions, and the differentiated needs of metropolitan cities, small and medium-sized local authorities. The session also highlighted the potential of joint project development clusters, sectoral priorities for mitigation and adaptation investments, and the importance of multi-level cooperation in local climate finance.
Merve Ağca, emphasized the importance of supporting investments in flood management, energy efficiency, low-carbon urban transportation, and resilient infrastructure systems strengthen cities’ resilience to climate change. Referring to the World Bank's report “Banking on Cities: Investing in Resilient and Low-Carbon Urbanization”, Ağca highlighted estimates indicating an investment need of approximately USD 256-821 billion annually, and a total of USD 7.9-25.5 trillion by 2050 to build resilient and low-carbon cities in low- and middle-income countries. In line with COP31's implementation-focused approach, Ağca emphasized that achieving the adaptation and mitigation targets set out in Nationally Determined Contributions (NDCs) depends on the active participation and implementation capacity of local governments.
Hasan Fehmi Tığlı, identified the project preparation as the most critical phase of investments aimed at strengthening climate resilience. Noting that international financial institutions prioritize sustainable projects, Tığlı emphasized that technical feasibility studies, and environmental and social impact assessments, are key determinants of access to finance for climate resilience investments. Providing information on the planned activities under the Sustainable Urban Resilience Financing Facility (SURFF), Tığlı noted that the programme aims to strengthen local governments' project preparation capacities, facilitate access to appropriate financing sources, and enhance cooperation with international financial institutions. Referring to the 'Climate Resilient Cities' priority of the COP31 Action Agenda, Tığlı also outlined the goals of establishing a centre of excellence and an investment-ready project pipeline to support climate-resilient cities.
Begüm İrhan, shared the financing and technical assistance mechanisms available to municipalities through the EBRD Green Cities Programme. Stating that the Green Cities Programme was established to support cities in advancing low-carbon and climate-resilience investments in line with the goals of the Paris Agreement, İrhan noted that financing is approached as a holistic support model encompassing project development, technical advisory services, and implementation. Emphasizing that Green City Action Plans (GCAPs) developed under the Green Cities Programme serve as an important tool for identifying cities' investment priorities, İrhan stated that the programme enables municipalities to strengthen their investment portfolios by prioritizing climate change adaptation and mitigation projects.
Dr. Melis Aydemir, evaluated the role of international development finance in local governments' sustainable infrastructure investments. Aydemir stated that water and wastewater management, energy efficiency, and resilient infrastructure investments are priority areas for supporting climate-resilient cities. Emphasizing the critical importance of environmental and social impact assessments in financing decisions, Aydemir underlined that technical assistance aimed at strengthening the project development capacities of local governments is as important as financing itself.
The session also noted that the emphasis on 'implementation,' which has been on the agenda of climate negotiations since 2016 at COP22 held in Marrakech following the adaptation of the Paris Agreement, has continued from Marrakech to Glasgow, from Sharm El-Sheikh to Baku, referred to as the 'Finance COP,' and to Belém; and it was further underlined that this agenda has gained even greater prominence within the framework of COP31, accompanied by expectations regarding finance, just transition, the implementation of NDCs, and the delivery of tangible results at the local level.
In line with COP31's anticipated role as an 'Implementation COP,' the session emphasized the decisive importance of project preparation capacity, technical assistance, and multi-stakeholder cooperation in transforming climate resilience-supportive projects into investments. Discussions addressed the need to strengthen institutional structures that facilitate local authorities’ access to national and international financing sources and to align investment priorities with municipalities’ strategic plans. It was further noted that financing processes should more effectively incorporate social dimensions, including disadvantaged groups, care services, public health, and energy and water poverty, in responding to risks such as floods, droughts, heatwaves, and water stress. It was also emphasized that establishing joint project clusters would contribute to accelerating local climate action.
The third session of the “Urban Talks Towards COP31” series, titled “A Just Transition for Whom and How?”, will be held on August 6, 2026, at MMU Hızır Bey Çelebi Hall. Registration is available via the link.
