Abstract: Cities are particularly vulnerable to climate change and climate extremes in part because they concentrate many activities, people and wealth in limited areas. As a result they represent an important scale for assessment and understanding of climate change impacts. This paper provides a conceptual and methodological framework for urban economic impact assessment of climate change. The focus of the paper is on model-based analysis of future scenarios, including a framing of uncertainty for these projections, as one valuable input into the decision-making process. The paper highlights the main assessment difficulties, methods and tools, and selected examples across these areas. A number of challenges are unique to climate change impact assessment and others are unique to the problem of working at local scales. The paper also identifies the need for additional research, including the need for more integrated and systemic approaches to address climate change as a part of the urban development challenge as well as the need to assess the economic impacts of climate change and response policy at local scale.