Asia Pacific Cities Seek US$8.2 Billion to Finance Climate Infrastructure Projects

Cities across the Asia Pacific region disclosed 277 climate infrastructure projects worth US$18.4 billion in 2023, seeking US$8.2 billion in investment through CDP-ICLEI Track. The region, responsible for over 55% of global greenhouse gas emissions and home to 4.7 billion people, faces potential GDP losses of up to US$953 billion under a 1.5°C warming scenario.

Of 142 APAC cities that reported a commitment to a GHG emissions target in 2023, only 20 have committed to achieving net-zero between 2026 and 2050 — a significant shortfall against global climate goals. Between 2018 and 2019, APAC climate finance totalled US$519.9 billion, with mitigation finance — primarily in solar, wind and hydropower — accounting for 91% of flows. Adaptation finance rose 31% during the same period but remains far below estimated needs, with APAC requiring an average of approximately US$1.7 billion annually through 2030 to meet Paris Agreement goals.

Renewable energy led APAC project disclosures in 2023 with 52 projects worth US$5.8 billion, followed by waste management (48 projects, US$4.4 billion) and transport (39 projects, US$6.3 billion). Southeast Asia accounts for 75% of early-stage projects requiring technical assistance, reflecting significant capacity constraints among cities in that sub-region. Megacities including Mumbai, Dhaka, Bangkok, Ho Chi Minh City, Jakarta and Shanghai face risks of partial submersion from rising sea levels by mid-century, adding urgency to adaptation investment.

CDP's capacity-building programme in 2023, supported by the Bank of America Charitable Foundation, provided two-part training workshops for selected Asian cities on adaptation financing and implementation. Of the 277 disclosed projects, 80% are actively seeking financing or funding. CDP and ICLEI serve as intermediaries, analysing disclosed projects and connecting local governments with investors, policymakers and technical assistance facilities. The programme builds on two prior years of CDP-BofA collaboration focused on climate risk assessments and adaptation planning for South and Southeast Asian local governments.

Key figure — US$953 billion in potential APAC GDP losses under 1.5°C scenario