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- The Under2 Coalition launched the inaugural subnational investment forum at COP31 - a major step toward closing the climate finance gap.
- Ambassador Ali Mohamed, Special Envoy for Climate Change, Government of Kenya called for the need to mobilise finance at scale and speed while equipping the subnational leaders with technical support and the funding to deliver.
- Daniele Violetti, Senior Director, UNFCC said that implementation is most effective when subnational actors and financial partners are included in the earliest stages.
- The forum called on national governments, financial institutions and COP31 Parties to do more to connect states and regions with climate finance.
ANTALYA, 10 November 2026 – Under2 Coalition launched the inaugural Subnational Investment Forum at COP31. Bringing together state and regional governments, financial institutions and business leaders, the forum addressed barriers to climate finance and ways to unlock investment in projects that create jobs, build sustainable transport systems, cut emissions and deliver benefits for communities.
The first global investment forum of its kind at a UN climate conference brought together representatives from the International Energy Agency, British International Investment and the World Bank, alongside state and regional leaders from across Europe, Africa, and North and South America.
The launch was followed by roundtables on bankability and electrification, where governors and subnational leaders from Rio Grande do Sul, Scotland, the Basque Country and Gauteng shared experiences and explored what it takes to turn a promising project into a bankable investment opportunity.
While states and regions are responsible for delivering much of the climate action needed on the ground, many face significant barriers to accessing finance. These include limited revenues, insufficient capacity to develop and deliver investable projects, and complex lending requirements. As the level of government closest to communities, states and regions are uniquely positioned to deliver climate and development benefits. But they need greater access to finance and earlier engagement with investors to realise this potential.
Speaking at the event, Ming Zhang, Director of Urban and Subnational Finance, World Bank, said: “we believe that subnational governments at the state and regional level are very important for development and addressing the climate challenge”
States and regions continue to electrify buildings, industry and transport systems and other high emitting sectors. To achieve the global target, they need climate finance to scale. While financial institutions often need projects that are derisked with financial commitment from subnationals. Across the two conversations, the clear consensus is the need for early collaboration between governments and financiers to develop bankable projects early. Jean Lemire, Climate Envoy, Government of Quebec said: We have to use the public money to attract private money. If we don’t give them the right conditions, we won’t get investment.”
The Subnational Investment Forum sets the scene for Finance Accelerator for States and Regions (FASTR) a joint initiative of the Under2 Coalition, Regions4 and SFO. Through FASTR, the Under2 Coalition worked with three Brazilian states to build a pipeline worth USD 1.4 billion. Addressing the audience at the closing event, Ambassador Ali Mohamed, Climate Envoy, Government of Kenya recognised the role of subnationals said: “Forum’s like this are very refreshing because we get to meet the people actually implementing the change on the ground”
The Subnational Investment Forum is intended to become an annual gathering at COP, building stronger connections between governments and financial institutions and helping move subnational climate projects towards investment.
Following the discussions, the Under2 Coalition Secretariat called for action in three areas:
- National governments to include states and regions in national investment plans and country platforms, with a role in governance and dedicated funding for subnational projects.
- Development banks, climate finance providers, philanthropies and private investors to provide technical assistance, support project bankability, engage earlier in project preparation, expand subnational projects in investment pipelines, and bring investment-ready projects to the Climate Implementation Bridge through FASTR.
- Parties at COP31 to continue these discussions at future COPs and use existing spaces, including the Veredas Dialogue, the Work Programme on Climate Finance, adaptation finance discussions and the cover decision, to recognise the essential role of states and regions in delivering climate action.
Daniele Violetti, Senior Director for UNFCCC said: “90% of parties referenced subnational entities in this round of NDCs, up from 60%, recognising them as climate action partners.” “Implementation is most effective when subnational actors and financial partners are engaged from the very beginning.”
Dr Champa Patel, Executive Director for Governments and Policy, Climate Group said: “There is no magic formula for making a project bankable. And there is no substitute for building relationships. This is not simply about exchanging business cards. It is about staying in the conversation long enough to identify an obstacle, find the right partner and agree a next step. We brought this forum together to help turn the climate ambitions of states, regions and cities into projects that attract investment and deliver for communities. Finance cannot be an afterthought. It has to be part of the conversation from the start.
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About Climate Group
Climate Group is an international non-profit, launched in 2004, with offices in London, Amsterdam, Beijing, New Delhi and New York. Our mission is to drive climate action, fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. We do this by forming powerful networks of business and government, unlocking the power of collective action and scale to move whole systems such as energy, transport, industry and food to a cleaner future. Together, we’re helping to shift global markets and policies towards faster reductions in carbon emissions.
About the Under2 Coalition
The Under2 Coalition is the largest global network of states and regions committed to reaching net zero emissions by 2050. Climate Group acts as secretariat of the Under2 Coalition.
For media enquiries and interview requests:
Vanessa Power
Climate Group
vpower@climategroup.org +447752403008
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Over 65 subnational government leaders from the Under2 Coalition and Subnational Methane Action Coalition will be in Antalya, and available for interviews.