Economics, Finance, and the Private Sector
Since cities are the locus of large and rapid socioeconomic development around the world, economic factors will continue to shape urban responses to climate change. To exploit response opportunities, promote synergies among actions, and reduce conflicts, socioeconomic development must be integrated with climate change planning and policies. Public-sector finance can facilitate action, and public resources can be used to generate investment by the private sector. But private-sector contributions to mitigation and adaptation should extend beyond financial investment. The private sector should also provide process and product innovation, capacity building, and institutional leadership.