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Purpose

This study aims to analyze city networks as they face the challenges of global warming. It seeks to introduce the notion of “governance from the middle” as an alternative to traditional intergovernmental policy. This is developed by focusing on the particular experiences of the C40 Cities Leadership Group and discussing its prospects and risks.

Design/methodology/approach

CCI works with a number of commercial banks, institutional investors, international financial institutions and other capital providers to design financing programmes and source capital.

Findings

The C40 Group illustrates some fundamental traits of city networks with a hybrid governance structure, combining traditional public institutional structures with market‐based arrangements, organizationally and qualitatively governing from the middle. Critical factors in this dynamic are the use of an external implementing body, providing new organizational opportunities for the network, and the prominence given to an integrated procurement process, which develops incentive structures for action and effectively connects actors at various levels of society. The latter emphasis on market‐incentives as a template for action is an innovative governance feature but not the panacea many want. The complex nature of the governance arrangement itself, the structural asymmetries among its members, and the diversified set of issues the network intends to address are all factors that remain to be researched.

Originality/value

The study provides new perspectives on the conceptual discussions about governance by introducing the notion of “governance from the middle”. These allow us in turn to continue research about the role of market‐arrangements in linking global and local ambitions. This could have a decisive policy impact on climate governance in general.

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