African policymakers, local government leaders and climate finance experts have called for stronger partnerships between national and subnational governments to unlock climate finance and accelerate climate action at the local level.
The call was made during a high-level dialogue held as part of the 2026 Clean Air Transport Finance Academy in Nairobi, Kenya, where participants examined practical solutions for overcoming barriers that continue to limit access to climate finance across the continent.
The dialogue, themed “Unlocking Subnational Climate Finance in Africa: From Barriers to Scalable Solutions,” was co-hosted by the Global Covenant of Mayors for Climate & Energy (GCoM) and C40 Cities in partnership with the World Resources Institute (WRI).
The discussions come at a time when Africa faces a significant climate financing gap. The continent is estimated to require approximately US$155 billion annually to meet its climate and development objectives, yet only about US$30 billion is currently mobilized each year.
“The conversation has moved from asking why cities need climate finance to identifying how national governments can help deliver it. From reforms underway in South Africa to growing engagement from continental institutions, momentum is building around a shared understanding that climate finance must reach the local level if Africa is to achieve its climate and development goals.”
Njenga Muchekehu, Deputy Regional Director for Africa, C40 Cities
Climate Finance Gap Remains A Major Challenge
Participants noted that while global climate finance commitments have increased over the years, local governments continue to face significant barriers in accessing resources needed to implement climate projects.
Cities and regional authorities are responsible for delivering many of the infrastructure, resilience and development investments required to meet national climate targets. However, financing constraints, fragmented institutional arrangements and regulatory barriers often limit their ability to act.
Stakeholders emphasized that bridging Africa’s climate finance gap will require not only increased funding but also stronger systems that allow local governments to access, manage and deploy climate finance effectively.
Ghana Highlights Decentralisation Reforms
Ghana used the dialogue to showcase ongoing reforms aimed at strengthening local governance and improving the ability of subnational authorities to contribute to climate and development objectives.
Representing the Ministry of Finance, Principal Economic Officer Eunice Inkum outlined a number of policy measures designed to align resources, responsibilities and decision-making authority at the local level.
She explained that Ghana’s approach is anchored on the principle of “funds follow functions,” ensuring that local governments receive resources that correspond with the responsibilities assigned to them.
“Ghana is advancing a range of reforms to ensure that resources, responsibilities and decision-making are aligned at the local level. Through the principle of ‘funds follow functions’, increased allocations under the District Assemblies Common Fund, the forthcoming National Decentralisation Policy and emerging tools such as Ghana’s Green Taxonomy, we are creating stronger foundations for local governments to access finance and contribute to national climate and development objectives.”
Eunice Inkum, Principal Economic Officer, Ministry of Finance, Ghana
According to Ms. Inkum, increased allocations through the District Assemblies Common Fund are helping strengthen the capacity of local governments to undertake development initiatives, including climate-related projects.
She also pointed to the forthcoming National Decentralisation Policy as a key framework for enhancing coordination between central and local government institutions while deepening local governance structures.
Additionally, Ghana’s Green Taxonomy is expected to provide guidance for sustainable investments and improve the country’s ability to channel climate finance into projects that support national development priorities.
Kenya Showcases Locally-Led Climate Finance
Kenya highlighted the role of fiscal decentralisation and locally-led financing mechanisms in supporting climate action at the county level.
Officials pointed to initiatives such as County Climate Change Funds and Financing Locally-Led Climate Action (FLLoCA) as examples of programmes helping local governments convert climate priorities into investment-ready projects.
The country has also implemented performance-based grants and pooled financing arrangements aimed at improving counties’ ability to access and manage climate investments while attracting private-sector participation.
South Africa shared experiences from ongoing municipal and fiscal reforms designed to strengthen the role of cities in climate investment planning and project implementation.
Officials noted that improving coordination between national and local governments remains central to efforts aimed at ensuring climate finance reaches communities where it can have the greatest impact.
Participants said the reforms provide useful lessons for other countries seeking to strengthen multilevel climate governance and improve local access to climate funding.
Stronger Partnerships Needed
Despite differences in institutional and financial arrangements across countries, participants agreed that effective subnational climate finance depends on strong national enabling frameworks, coordinated governance structures and financing mechanisms capable of directing investment to the local level.
Experts stressed that climate action is ultimately implemented within communities, making local governments critical actors in achieving national climate and development goals.
The dialogue concluded with renewed calls for stronger partnerships among governments, development institutions and private investors to accelerate climate action and build resilience across African cities and communities.
As African countries seek to close the climate finance gap, the experiences shared by Ghana, Kenya and South Africa are increasingly being viewed as practical models for strengthening local climate governance and unlocking investment for sustainable development.
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