Global Landscape of Climate Finance 2023

Average annual climate finance reached nearly USD 1.3 trillion in 2021/2022, nearly doubling from 2019/2020 levels, though this remains only 1% of global GDP. Growth was primarily driven by mitigation finance in energy and transport, with significant concentration in China, the US, Europe, Brazil, Japan, and India. Adaptation finance, while reaching a record USD 63 billion, remains severely underfunded compared to the USD 212 billion annual need for developing countries by 2030. The report highlights a critical investment gap, noting that annual needs will increase to between $8.1 and $9 trillion through 2030, and over $10 trillion annually from 2031 to 2050.

• Average annual climate finance flows for 2021/2022 reached almost USD 1.3 trillion, nearly double the 2019/2020 levels. This growth was largely driven by a USD 439 billion increase in mitigation finance, although USD 173 billion of the total increase is attributed to methodological improvements and new data sources.
• There is a massive gap between current finance and future requirements; annual needs are estimated to rise from $8.1 to $9 trillion through 2030, and exceed $10 trillion annually between 2031 and 2050.
• Climate finance is highly concentrated geographically, with 84% of total flows accounting for East Asia and the Pacific, the US and Canada, and Western Europe. China alone accounted for 51% of all global domestic climate finance mobilization.
• Mitigation finance is dominated by the energy (44%) and transport (29%) sectors, while agriculture and industry receive less than 4% of total mitigation and dual benefits finance, despite having a combined mitigation potential of 20 GTCO2 by 2030.
• Adaptation finance reached a record USD 63 billion in 2021/2022, but this is far below the estimated USD 212 billion annual requirement for developing countries by 2030. This funding is 98% dominated by public actors.
• Private finance accounted for 49% of total climate finance (USD 625 billion), with a notable increase in household spending (31% of private finance) driven by the doubling of electric vehicle sales from 2020 to 2021.
• Finance for the most vulnerable regions remains critically low; less than 3% of global total (USD 30 billion) went to least developed countries, and the ten most climate-affected countries between 2000 and 2019 received less than 2% of total finance (USD 23 billion).

APA

Buchner, B., Naran, B., Padmanabhi, R., Stout, S., Strinati, C., Wignarajah, D., Miao, G., Connolly, J., & Marini, N. (2023). Global Landscape of Climate Finance 2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Executive-Summary-l-Global-Landscape-of-Climate-Finance-2023.pdf

Chicago

Buchner, Barbara, Baysa Naran, Rajashree Padmanabhi, Sean Stout, Costanza Strinati, Dharshan Wignarajah, Gaoyi Miao, Jake Connolly, and Nikita Marini. Global Landscape of Climate Finance 2023. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Executive-Summary-l-Global-Landscape-of-Climate-Finance-2023.pdf.

Wikipedia

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BibTeX

@techreport{buchner2023global, author = {Buchner, Barbara and Naran, Baysa and Padmanabhi, Rajashree and Stout, Sean and Strinati, Costanza and Wignarajah, Dharshan and Miao, Gaoyi and Connolly, Jake and Marini, Nikita}, title = {{Global Landscape of Climate Finance 2023}}, institution = {Climate Policy Initiative}, year = {2023}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Executive-Summary-l-Global-Landscape-of-Climate-Finance-2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }