As climate finance efforts grow in ambition and scope, there is increasing recognition of the critical role that cities and subnational governments must play in achieving national climate goals. The Cities Climate Finance Leadership Alliance (CCFLA) and SDSN Global Commission for Urban SDG Finance convened a session during the 2025 World Bank/IMF Spring Meetings in Washington DC to explore how country platforms – emerging as central tools for scaling climate finance – can more effectively integrate urban priorities. The event also marked the launch of a joint paper by CCFLA and the SDSN Global Commission, developed with input from the Asian Infrastructure Investment Bank (AIIB), which presents a framework for urban-inclusive country platforms.
THE ROLE OF COUNTRY PLATFORMS IN SCALING CLIMATE FINANCE
Country platforms are designed to mobilize climate finance at scale by coordinating national development strategies, international investment, and donor engagement under a unified, country-led approach. However, many of the existing platforms currently fall short in addressing the urban dimension of the climate transition and/or include subnational governments in the process of designing the platforms. Cities are responsible for over 70% of global emissions and require trillions in investment to meet their climate targets – therefore urban climate investments need to be leveraged at scale to achieve transformative change.
As discussions on reforming Multilateral Development Banks (MDBs) and advancing country platform design progress, a crucial question arises: how can these mechanisms be adapted to better reflect urban realities, empower subnational actors, and catalyze city-led climate action?
TOWARD URBAN-INCLUSIVE COUNTRY PLATFORMS
The new paper launched during the Spring Meetings offers a clear vision for integrating subnational governments and urban agendas into country platforms. It proposes a practical framework to help policymakers identify entry points for more robust urban engagement, from policy design to implementation. The framework provides existing and emerging country platforms with a sequential action pathway from initial subnational engagement to implementation. It describes the stage, operating feature and indicators of successful urban integration.
The session’s discussion helped contextualize this framework within real-world experiences, generating practical insights for applying the approach across diverse country contexts.
KEY THEMES FROM THE DISCUSSION
- Evolving Nature of Country Platforms
Initially conceived to support financial stability and harmonized resource mobilization, country platforms are evolving. They are intended to be country-owned, politically anchored, and aligned with national development goals. While interest in establishing such platforms is growing, only a few countries have moved into active implementation. The next generation of platforms may differ significantly in structure and focus, requiring tailored approaches. - Strengthening Governance and Fiscal Coordination
Effective country platforms depend on strong governance across all levels. This means aligning national, regional, and local policies and establishing fiscal coherence. Involving Treasury ministries early in the process can ensure that climate finance strategies are embedded within national budgeting systems and aligned with long-term public investment plans. - Tackling Challenges to Urban Integration
Urban integration faces persistent challenges, including fragmented local priorities, limited fiscal decentralization, and constrained municipal capacity. Many cities, especially smaller ones, lack the ability to manage financial risk or independently access project preparation support and climate finance. Without mechanisms to address these gaps, cities may remain sidelined. - Expanding Subnational Engagement
Subnational participation in country platforms can take multiple forms: from basic consultation to platforms with explicit urban mandates, or sectoral platforms with urban relevance, such as adaptation or transport. The paper outlines how these models can be adapted to each country’s political, fiscal, and urbanization landscape. Additionally, partnerships with Public Development Banks can help unlock finance for subnational projects. - Strengthening Integration through Policy and Practice
Deeper policy alignment is needed to recognize the role of cities in delivering national climate objectives. Country platforms could also address fiscal decentralization head-on – clarifying roles, responsibilities, and financial autonomy at the subnational level. Beyond coordination, platforms can serve as tools for building capacity, fostering collaboration, and ensuring that urban areas are key engines of mitigation and resilience
MOVING FORWARD
Looking ahead, the paper encourages further exploration of how country platforms can evolve in line with changing urban dynamics. This includes avoiding unsustainable development models like suburban sprawl, enabling larger cities to tap international capital markets, and empowering smaller municipalities to engage meaningfully. The proposed framework offers flexibility, allowing countries to determine their own pace and depth of urban integration – from consultation to full co-ownership.
Urban-inclusive country platforms hold immense potential for aligning local innovation with national ambition. By embedding subnational priorities into country-led strategies, these platforms can become more effective, equitable, and capable of mobilizing the climate finance needed to meet the scale of the challenge. As global efforts to reform climate finance architecture continue, a sharper focus on cities and multi-level governance will be critical to driving transformative change.
