City governments must harness their financial reserves and revenues effectively to deliver the necessary services and infrastructure that meet the needs of their residents. The ability to collect, manage and invest these resources through appropriate financial mechanisms determines a city’s fiscal sustainability. Examples of unsustainable approaches include high levels of debt or other liabilities, which can divert funds from policy investments, or corruption and mismanagement of funds. 

This section explores the policies or approaches that city governments can take to address these points and strengthen their financial credentials so that they can finance the necessary projects to become a green and sustainable city.