This working paper was developed as part of the Urban-Act project to inform the design of effective matchmaking support to cities in Asia and the Pacific. Matchmaking for climate finance refers to helping cities prepare 'bankable' climate action projects and connecting them with potential investors. This support is crucial to overcoming existing barriers to accessing climate finance at the city level. 

The report examines the key challenges faced by city climate finance matchmaking programmes and explores possible solutions and enabling conditions. Notable challenges include the lack of capacity of city governments for project preparation and limited replicability and scalability of matchmaking interventions. Possible solutions include utilising blended finance and financial aggregation to secure greater funding and increase knowledge-exchange between cities. Adopting impact assessments and engaging in early stage investor consultations should enable the implementation of these solutions.