1. Themes
  2. Domestic Mobilization
  3. Urban and Subnational Finance

Urban and Subnational Finance

Financing sustainable and resilient urban regions requires tailored instruments for urban infrastructure, mobility, housing, and waste management.

2030 Goals

01

Empower all municipalities with climate-resilient budgeting and dedicated financing vehicles, ensuring equitable access to resources for low-carbon and resilient urban infrastructure.

02

Embed adaptation planning into municipal and metropolitan strategies, making resilience a standard requirement across infrastructure, housing, transport, and public services.

03

Scale Finisa Verde and other lines enabling clean-energy and efficiency investments across urban public systems.

04

Brazil Climate and Ecological Transformation Investment Platform effectively incorporates urban and subnational climate objectives in their design and priorities.

Status

No Progress

Federal programs like AdaptaCidades and PCVR are expanding municipal adaptation planning and capacity-building, signaling a shift toward structured, long-term urban resilience financing at the subnational level.

Urban climate integration is advancing through municipal strategies like PlanClima SP and national financing tools such as the BNDES Climate Fund and Finisa Verde, enabling larger-scale investments in low-carbon mobility, infrastructure, and efficiency.

Waste management financing is receiving targeted attention under Programa Lixão Zero, aligning environmental health with climate mitigation while creating entry points for municipal green bonds and PPPs in the waste sector.

Despite progress, financing remains concentrated in early-stage or pilot projects, with limited integration into municipal fiscal frameworks, especially in small and mid-sized cities.

Launched in 2023, the PPF Connector program supports enhanced collaboration and information exchange among project preparation facilities (PPFs), boosting the efficiency and efficacy of the project preparation technical assistance (TA) ecosystem for urban climate-related infrastructure projects.

The CCFLA Brazil Hub, implemented in 2025, plays a critical role at the urban climate finance ecosystem level, by bringing together main actors in the agenda to identify gaps challenges, explore solutions and collaborate across diverse areas (such as adaptation finance, project preparation and enabling environments).

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Urban and Subnational Finance.

Public Financial Institutions

Brazilian Development Bank (BNDES)

Public Financial Institutions

Caixa Econômica Federal (CEF)

Multilateral Development Banks

Inter-American Development Bank (IDB)

Multilateral Development Banks

World Bank

Multilateral Development Banks

Development Bank of Latin America and the Caribbean (CAF)

International Organizations

Green Climate Fund (GCF)

International Organizations

Global Environment Facility (GEF)

Ministries

Ministry of Environment and Climate Change (MMA)

Ministries

Ministry of Cities (MCID)

Ministries

Ministry of Regional Development (MIDR)

Ministries

Ministry of Planning and Budget (MPO)

Other Governmental Organizations

City governments – São Paulo, Rio de Janeiro, Porto Alegre

Other Governmental Organizations

Brazilian Institute of Environment and Renewable Natural Resources (IBAMA)

Supportive Stakeholders

World Resources Institute Brasil (WRI Brasil)

Supportive Stakeholders

Comunidades Catalisadoras

Supportive Stakeholders

Instituto Mar Urbano

Supportive Stakeholders

BVRio

Key Milestones

Showcasing the key reform milestones for Urban and Subnational Finance that have been addressed at global events.

Location TBC

OCTA ministerial conference

View Event
  • Urban and Subnational Finance

    Institutionalize urban climate finance within municipal budgeting and credit access frameworks.

  • Mobilizing Private Adaptation Investment

    Reform ESG frameworks and corporate sustainability ratings to explicitly incorporate resilience, climate risk adaptation, and ecosystem stability as material factors.

Location TBC

PRI in Person

View Event
  • Urban and Subnational Finance

    Enable municipal issuance of urban green bonds linked to climate-resilient infrastructure and waste management.

  • Climate-resilient Debt Clauses and Pre-emptive Reprofiling

    Develop a legal and financial framework to integrate CRDCs into Brazil’s complex public debt structure, accommodating diversified maturities, multiple currencies, and a broad creditor base

Learn More

Publications and educational material to deepen understanding of Urban and Subnational Finance.

Integrated Urban Development and Climate Resilience in Brazilian Cities

Urban and Subnational Finance

Project page for integrated urban development and climate resilience initiatives in Brazilian cities.

Brazil’s Federal Government launches adaptation initiative

Urban and Subnational Finance

News release on the federal government’s initiative to support states and municipalities in climate change adaptation.

Accelerating Nature-Based Solutions in Brazilian Cities

Urban and Subnational Finance

Report exploring how nature-based solutions can accelerate climate resilience in Brazilian cities.