This first annual publication identifies the gap between the current levels of investment in low-emission, climate resilient urban infrastructure and the volumes required to ensure the world is on track to keep global temperature rise below two degrees. The report includes analysis of major barriers to investment and solutions to address these. The authors suggest national governments adopt policies and incentives that encourage cities to invest in low-emission and climate-resilient infrastructure. In addition, they urge cities to adopt frameworks that put a price on carbon, such as cap-and-trade mechanisms or traffic congestion charges. They also recommend strengthening banks and institutions that will support cities in developing investment-worthy climate-related projects. And, they suggest that international development finance be directed through local financial institutions, which are well positioned to help cities finance climate-smart infrastructure solutions. Finally, the authors call for creating an innovation network of labs for new financial instruments and funding models.