Uncertainty created by US withdrawal from Paris pact has shown robust climate action depends on sustainable subnational efforts for which cities are key operational units

The United States’ withdrawal from the Paris Agreement continues to affect global climate policy coordination. While the Paris Agreement’s core mechanisms remain intact, policy uncertainty has increased, highlighting the importance of resilient national and local systems that can sustain climate action regardless of international developments. Cities, as the hubs of population, energy consumption and economic activity, are central to this approach.

The Paris Agreement established a comprehensive framework for global emissions reduction through Nationally Determined Contributions, and enhanced transparency frameworks and periodic global stocktaking. These mechanisms are designed to allow continuous progress even when individual countries adjust or scale back their commitments. However, policy uncertainty at the international level increases the complexity of coordinating mitigation and adaptation efforts across multiple actors. In this context, cities and local governments have emerged as critical operational units for climate implementation. By translating national targets into specific local policies, infrastructure projects and investment programs, urban areas provide a practical and measurable pathway to sustain mitigation and adaptation objectives. Multi-level governance, linking national policy directives, municipal planning, financial institutions and civil society, has become essential for ensuring that climate policies are executed effectively, and for mitigating the impact of international policy fluctuations on domestic action.

China’s climate strategy is structured around domestic development priorities and structural economic transformation, providing resilience against external policy uncertainties. National targets, such as peaking carbon emissions before 2030 and achieving carbon neutrality before 2060, are implemented through coordinated policy frameworks and regulatory instruments at both the provincial and municipal levels. Cities are at the forefront of these efforts, with policies encompassing low-carbon urban planning, expansion of green infrastructure, energy-efficient transportation networks and climate-resilient construction standards. These measures not only reduce vulnerability to climate shocks but also strengthen long-term urban sustainability.

Green finance plays a central role in these initiatives, translating policy into actionable investment. Instruments such as green bonds, climate-focused funds and green credit lines provide predictable capital for municipal and infrastructure projects, enabling cities to implement resilience measures systematically. Aligning financial flows with national and municipal policies ensures continuity in climate action, facilitates large-scale deployment of low-carbon technologies, and provides a scalable model for integrating policy, governance and finance under global uncertainty.

In addition to national strategies, China has initiated 23 climate investment and financing pilot programs across major cities and development zones, including Shanghai’s Pudong New Area, Beijing’s Tongzhou District and Chongqing’s Liangjiang New Area. These pilots test mechanisms linking public policy, market finance and urban implementation, such as climate-aligned loans for energy efficiency projects or resilient infrastructure. For example, a local energy company in Chongqing received nearly $60 million in climate loans to build a combined cooling, heating and power facility, improving energy efficiency for surrounding industries. Pilot cities are also developing project databases, evaluation standards and risk assessment frameworks, offering policy lessons that can be scaled to other regions.

Urban areas in developing countries are particularly vulnerable to climate-related risks, including extreme weather events, flooding, heat stress and rising sea levels. These vulnerabilities are compounded by rapid urbanization, infrastructure deficits and limited institutional capacity for climate planning. Policy shifts by major emitters, such as the United States, introduce additional uncertainty in accessing international climate finance and coordinating adaptation measures. Investment in urban resilience is essential to maintain effective climate action. Key measures include upgrading critical infrastructure to withstand climate shocks, integrating climate risk assessments into urban planning and governance frameworks, and enforcing building standards that enhance long-term sustainability.

Green finance serves as a crucial mechanism to mobilize resources for these investments. Instruments such as climate-focused bonds, resilience funds, concessional loans and blended finance structures enable cities to implement mitigation and adaptation projects even under uncertain global conditions. In addition, regional cooperation and South-South partnerships can provide technical support, knowledge transfer and capacity-building, complementing financial resources and helping cities implement best practices adapted to local contexts. By integrating policy, finance and planning, developing countries can strengthen urban resilience, maintain policy continuity, and deliver scalable solutions for both mitigation and adaptation, creating a foundation for sustainable development in the face of global climate uncertainty.

Global climate governance is increasingly multi-layered, with national governments, cities, financial institutions and civil society playing complementary roles. Cities, in particular, have emerged as operational hubs for translating high-level climate policies into concrete mitigation and adaptation actions. By coordinating urban planning, resilient infrastructure development and targeted investment, municipalities can implement climate policies effectively at the local level. Integrating green finance with urban resilience planning, through instruments such as green bonds, climate funds and concessional loans, provides predictable and sustainable capital flows, enabling cities to maintain policy continuity even amid shifting international commitments.

China’s experience demonstrates how national guidance, urban-level implementation and financial support can be coordinated into a coherent policy framework. By linking top-down targets with local action and mobilizing financial resources, China has strengthened urban resilience while sustaining progress toward its climate goals. This approach provides a practical model for other countries, particularly in the Global South, where cities face concentrated climate risks but often lack stable institutional and financial capacity. Scaling such frameworks internationally could enhance global climate governance by bridging policy formulation and on-the-ground implementation.

Despite the uncertainty introduced by the US’ withdrawal from the Paris Agreement, climate action is not halted. Urban resilience has become a critical pillar of climate policy, providing a scalable framework for sustaining both mitigation and adaptation efforts. Cities in China and developing countries demonstrate that effective climate action depends on robust planning, strategic investment and integration with financial mechanisms.

Looking ahead, prioritizing urban resilience, supported by targeted green finance and multi-level governance, will be essential to ensure that climate policies remain continuous, adaptive, and capable of addressing evolving global and local climate challenges. Governments and policymakers should also focus on monitoring, evaluation, and knowledge-sharing to continuously refine urban resilience strategies and replicate successful models across regions.

The author is a researcher at the Academy of Financial Research at Zhejiang University and an assistant professor at Zhejiang University International Business School.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.