Cities are facing mounting financial pressures as climate impacts intensify. In some regions, recurring floods and extreme weather have driven steep increases in insurance premiums, reduced insurability for homes and businesses and triggered shifts in investment capital.

A new report from Resilient Cities Network and Tokio Marine suggests that without a major shift in how cities finance resilience, some will face economic decline and even disinvestment.

Some cities have begun trying alternative approaches. In Broward County, Florida, recurring flooding drove premiums up by more than 400%. Officials modelled the economic impact, showing flood defences could deliver a return of at least 9% and local businesses backed new funding mechanisms.

Cape Town, South Africa, has embedded resilience into governance, focusing on delivery, audits and transparent reporting. This helped the city secure international financing and an improved credit rating.

Canada’s Green Municipal Fund, run by the Federation of Canadian Municipalities, supports municipal resilience and net zero projects with grants, loans and capacity building. Since 2000 it has approved over 2,300 projects worth some £930m, leveraging more than £44m in private capital.

“This is not just about strengthening infrastructure,” said Lina Liakou, managing director of Resilient Cities Network. “By shaping resilience portfolios that attract private capital, we are making resilience practical, measurable and investable.”

With COP30 approaching, the report outlines a portfolio approach based on six practices: holistic planning, stakeholder coordination, capital allocation, data-driven strategies, project management and transparency.

“Insurance must go beyond payouts,” said Brad Irick, group CEO of Tokio Marine. “By partnering with cities from the start, we can help price and reduce risk, mobilise capital and protect long-term economic competitiveness.”

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