Strengthening cities for climate-resilient growth

In Mexico, more than 3,000 local government employees have now completed training courses on sustainable urban finance developed by an IKI project. Participants learned about development planning instruments that support climate change mitigation and adaptation to the impacts of climate change in cities. 

Challenges facing the urban environment have become greater as a result of the climate crisis. More than ever before, cities are now urgently being called on to implement measures for mitigating climate change and adapting to its impacts. Development planning for urban spaces also has a key role to play in resolving social and economic inequalities. Accordingly, the activities to be undertaken by urban planners not only include the administration of basic services and infrastructure, but also the regulation of land use and the implementation of measures to promote fair and sustainable development.

While managing the day-to-day requirements for the provision of public services, local councils must also procure and organise the resources required to implement sustainable urban policy. Traditionally, the urban financing have been met by tax revenues such as property taxes. Today, however, more innovative and fairer approaches are needed to accommodate the complex and dynamic nature of modern cities.

The use of various approaches, such as public-private partnerships, for example, and other forms oftax contribution, is essential in order to fund urban growth that is both integrative and sustainable.

Capacity building in sustainable finance

In light of these needs, the Mexican Ministry of Urban Development recently offered an online course entitled “Sustainable Urban Financing Instruments for Municipal and Metropolitan Management” from January to March 2024. The course was designed with the aim of building capacity in this field within Mexican local government organisations.

The course materials cover various aspects of climate finance as well as sustainable urban financial instruments.

The first two modules are intended to improve participants’ knowledge of key concepts such as urban management and the work of municipal governments. These materials address economic principles and public-private partnerships, and include an overview of tax instruments such as property tax and the various land value capture mechanisms. Module 3 covers the financing of housing development, with a focus on social housing in Latin America. Module 4 addresses the interrelationships between urban finance and climate change, with the module focusing in particular on sustainable finance and strategies for accessing global funds such as the Green Climate Fund.

Strategic financial planning for effective mitigation and adaptation measures

For urban administrations, strategic financial planning forms the starting-point for achieving climate targets, and implementing effective measures for mitigation and adaptation. Accordingly, strengthening the capabilities of cities to secure financing is especially important for achieving inclusive, democratic and sustainable development.

The course has helped people working in local government to receive the knowledge and tools that they need in order to navigate their way through the complex field of urban financing in the context of climate change.