From Informality to Impact: The Untapped Potential of Scaling Urban Resilience Innovation in Informality

This study reviewed ~130 urban resilience solutions implemented by for-profit and not-for-profit organisations in cities in the Global South, with a focus on informal contexts. The research included a comprehensive literature review, in-depth qualitative interviews with funders and implementers, and a large-scale survey. The report seeks to: 

• Review the current landscape of for-profit and not-for-profit urban resilience solutions being implemented in informal contexts (including but not limited to informal settlements, informal economies and labour) in the Global South.
• Identify key opportunities and challenges for scaling urban resilience solutions in informal contexts.
• Provide recommendations for enabling policy and investment approaches to help scale the for-profit and not-for-profit resilience solutions market. 

Key findings: 

• While the study has uncovered a wide depth and breadth of urban resilience solutions being implemented in informal contexts, findings indicate that solutions across both for-profit and not-for-profit organisations are predominantly in the early stages of development and testing. This suggests that despite a consensus around the case for action, the maturity of solutions implemented by non-state actors remains in incipient phases. 
• Philanthropic and research grants play a key role in supporting novel and early-stage solution development and testing. Findings point to success stories of solutions maturing with the ownership and long-term uptake provided by municipalities, however such cases remain isolated. Better stakeholder and funder coordination, and hybrid financial instruments and business models are required to support solutions across their entire lifecycle.
• Investing in urban resilience solutions in informal contexts leads to broader outcomes that extend beyond climate resilience. The study depicts how interventions contribute to sustainable development, improving health and wellbeing outcomes, gender equity, livelihoods and access to green jobs, as well as improved urban biodiversity, offering glimpses of the transformative potential of these solutions.