The global economic downturn caused by the covid-19 pandemic puts major financial strains in particular on cities, through increased costs for public health and social care. In parallel revenues from taxes are reduced, and so are revenues from local services such as transportation systems. This generates stress on city governments to support businesses, generate jobs, and restore public services. City governments have an opportunity to put in place strategies to recover from the pandemic and at the same time tackle the effects of climate change past and future, by moving towards pathways that are sustainable, resilient and inclusive. This will require mobilizing private sector finance, strengthening revenue flows, regulatory environments and financial management systems. And it will imply developing financial instruments and investment vehicles that can generate investor confidence and appetite through de-risking novel climate-smart solutions.