A new C40 report highlights case studies from around the world showing how cities can attract private funding for climate resilience projects. Released on the sidelines of the World Bank spring meetings, the document argues that private investment is essential to bridge massive funding gaps for urban adaptation. Examples include upgrades to the Netherlands' Afsluitdijk seawall and innovative projects in Kuala Lumpur and Washington DC.
Cities worldwide face escalating costs to protect against climate risks like sea-level rise and extreme weather, potentially totaling $256 billion to $821 billion by 2050 for low- and middle-income countries alone. Currently, only about 1 percent of climate funding supports urban adaptation efforts. C40, a network representing major cities, released a report featuring 10 case studies to demonstrate viable private financing models. The Afsluitdijk, a 32-kilometer causeway in the Netherlands built in 1932, underwent upgrades through a 25-year contract with a consortium of contractors, spreading payments over time without upfront public expenditure. The project is now complete and continues to serve as a key defense against rising seas. Work is finished, and the sea wall remains effective against encroaching water, as noted in the report. Other examples include a wastewater recovery project in Sao Paulo, coral reef insurance in Mexico, performance-based payments in Washington DC, and a stormwater system paired with a toll road in Kuala Lumpur, Malaysia. Barbara Barros, C40's global head of adaptation finance and a report author, said, “The idea of this report is really to improve the conversation and bring in proof of concept so we can work with cities to leverage more of these opportunities.” She emphasized that adaptation differs from mitigation and requires private capital to scale up. Dan Zarrilli, former New York City chief resilience officer, praised the case studies for providing replicable options. “Projects need to be bankable,” he said, noting the challenge of selling future damage avoidance to investors. Dakota Fisher of NRDC highlighted U.S. challenges, with federal funding waning under President Trump, pushing smaller municipalities toward creative financing. Experts caution that private involvement must prioritize equity, quality, and safeguards. Debbie Hillier of the Zurich Climate Resilience Alliance warned, “There is definitely scope there. But what we don’t want is to assume the private sector can do everything.” Barros added that successful projects depend on cost-risk sharing and strong social protections.
