10 years of sustainable urban development at the IKI
Since 2015, the topic of ‘sustainable urban development’ has been a key focus of the International Climate Initiative (IKI).
Cities are drivers of climate change and, at the same time, face significant pressure to adapt to its impacts. That is why the topic of ‘sustainable urban development’ has been a key focus of the International Climate Initiative (IKI) since 2015.
Today, more than half of all people live in urban areas. By 2050, this number will rise even further to two thirds. It is essential to choose climate-friendly and sustainable development pathways for this growth in the future. According to the German Advisory Council on Global Change (WBGU), for example, cities are responsible for around 70 percent of global energy utilisation and global energy-related CO2 emissions.
This means that cities are drivers of climate change. They are therefore subject to great pressure to adapt to the impacts of climate change, for instance when dealing with urban heat-island effects or the shortage of water. Cities also offer a particularly high level of potential impact. They are often even pioneers in climate action: current data from the C40 Cities Climate Leadership Group indicates that 73 percent of its member cities have already exceeded their peak level in CO2 emissions and are reducing their emissions at a faster pace than their respective national governments.
2025 marked an anniversary for the International Climate Initiative (IKI): the topic of “sustainable urban development“ has been a priority of the funding program for ten years now. It is reflected in all four funding areas and has been part of the IKI strategy’s prioritised area of action “Sustainable and climate-friendly development of urban and peri-urban areas“ since 2023.
IKI projects contribute to solutions for urban challenges in many different ways, from nature-based solutions to digital toolkits. Experience gained from specific project work clearly demonstrates that sustainable urban development requires the active participation of local communities and leads to an increase in their quality of life at the same time.
In 2025, three new projects were launched in the area of sustainable urban development:
As part of the IKI Medium Grants 2023, the IKI funded a project in three cities in Indonesia with almost EUR 550,000. The project strengthens local women’s organisations and empowers women to become recognised experts on decarbonisation and environmental responsibility in their cities. In addition, the project also promotes capacity building in local governments in order to improve knowledge of gender-just climate policy and the inclusion of local women in the decision-making process.
funding
was committed by the IKI in 2025 for projects that work on the adapation to the impacts of climate change.
A project in Costa Rica, funded with EUR 3 million, is based on the experience and findings of its preceding project. It combines climate resilience with sustainable use and biodiversity conservation in urban planning instruments in medium-sized and growing cities in the coastal regions of Costa Rica. For example, this can preserve the ecosystem services of the surrounding areas and strengthen the local population’s resilience to climate change. Examples of this include lower temperatures in cities, shade provided by trees, enhanced water quality, protection against storms and floods, and the provision of habitats for endangered species.
As part of the Brazil Country Call, 2025 marked the completion of the project preparation phase to strengthen climate resilience in the area of urban and municipal water management. The start of the project is planned for 2026.
In October 2025, the first online networking event of IKI’s global urban community also took place. It brought together virtually 37 participants from 13 of IKI’s ongoing projects. The event promoted the exchange between IKI projects in order to identify synergies and increase efficiency through complementary activities.
Several IKI projects that are working at subnational and municipal level took part in this year’s “COP30 Local Leaders Forum” in Rio de Janeiro. The focus of the forum was placed on the political leadership role of cities in the battle against the climate crisis, past achievements in urban climate change mitigation measures, and the decision to demonstrate even stronger implementation of climate action and adaptation at subnational level in the future.
In the future, sustainable urban development will continue to play a major role in IKI funding. As part of the IKI Compete funding instrument, the IKI is looking for project ideas to strengthen the climate resilience of cities in coastal regions of South and Southeast Asia, for urban value chains by using bioenergy, and for scaling successful approaches for the development of urban areas using the IKI Large Grants Call 2025. In the IKI Medium Grants 2025, both thematic priorities had a local focus. Project ideas were sought that implement local approaches to climate action through circular economy and strengthen local capacity for the adaptation to the impacts of climate change.
Project overview 2025
Preparation phases started
Projects extended and/or additionally funded
IKI Annual Report 2025
This article is part of the IKI Annual Report 2025.
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