"The battle for climate compatible development will be won or lost at the subnational level: in provinces, districts and cities. National governments depend on subnational actors to implement climate policies. What is more, innovation in climate compatible development can flourish at the subnational level when the appropriate legal and policy conditions are created. Climate compatible development at the subnational level is characterised by distinct challenges: Subnational institutions and leaders face intense local pressure to act on the negative impacts of climate extremes and disasters. People’s expectations for subnational authorities to respond may be out of sync with the powers and resources they have available. Higher levels of scientific uncertainty about future climate trends at the local level (than at larger scale) can make it difficult to know if investments are ‘climate-proof’. Different subnational governments and agencies may struggle to coordinate with each other, making it harder to respond effectively to climate change and forge long-term solutions. The scale and pace of urbanisation in many developing countries, including unplanned settlements and the informal economy, magnify these challenges."