Global Landscape of Climate Finance 2023
Summary
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.
Key insights
- 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).
Cite the original document
- 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
- {{cite report |last1=Buchner |first1=Barbara |last2=Naran |first2=Baysa |last3=Padmanabhi |first3=Rajashree |last4=Stout |first4=Sean |last5=Strinati |first5=Costanza |last6=Wignarajah |first6=Dharshan |last7=Miao |first7=Gaoyi |last8=Connolly |first8=Jake |last9=Marini |first9=Nikita |title=Global Landscape of Climate Finance 2023 |publisher=Climate Policy Initiative |date=November 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Executive-Summary-l-Global-Landscape-of-Climate-Finance-2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- 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} }
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