The city of Bologna in Italy developed a public-private partnership scheme 'Green Areas Inner-city Agreement' (GAIA) in 2010 to leverage finance to plant trees in its urban area as a response to droughts, extreme temperatures and water scarcity. Through GAIA, private companies are persuaded to purchase credits to compensate their emission and neutralise their carbon footprint. The credits are then used to finance tree planting. In exchange for the financial contributions, companies receive additional benefits such as carbon audit, workshops on environmental issues and marketing benefits. The scheme was initiated by the City of Bologna and developed as part of an EU-funded project as a result of a cooperation of researchers and various public and private actors in the city. Until 2018, the scheme has raise 281,000 EUR to plant 2320 trees that are foreseen to sequester 6960t of CO2. The scheme has been replicated in a number of other Italian cities and contributes to the climate adaptation objectives of the Bologna Adaptation Plan to increase the number of green spaces in urban areas and promote urban safety in the face of extreme weather events.