Global Landscape of Climate Finance 2023

The 'Global Landscape of Climate Finance 2023' executive summary reports that average annual climate finance flows reached nearly USD 1.3 trillion in 2021/2022, nearly doubling from 2019/2020 levels. Despite this growth, current flows represent only about 1% of global GDP and remain heavily concentrated in a few geographies and sectors, primarily mitigation in energy and transport. The report emphasizes a massive gap between current flows and the estimated annual needs, which are projected to rise from USD 8.1 trillion to over USD 10 trillion by 2031-2050 to avoid the worst impacts of climate change.

• Average annual climate finance flows for 2021/2022 reached nearly USD 1.3 trillion, an increase from USD 653 billion in 2019/2020. This growth was primarily driven by mitigation finance, which increased by USD 439 billion, although USD 173 billion of the total increase is attributed to methodological improvements and new data sources.
• There is a severe gap between current climate finance and estimated needs. Annual needs are projected to increase from USD 8.1 trillion through 2030 to over USD 10 trillion annually between 2031 and 2050, requiring at least a five-fold increase in annual finance.
• Climate finance is highly concentrated geographically, with 90% of increased funds going to China, the US, Europe, Brazil, Japan, and India. East Asia and the Pacific, the US and Canada, and Western Europe together account for 84% of total climate finance. China alone accounted for 51% of all global domestic climate finance mobilization.
• Mitigation finance is dominated by the energy and transport sectors, which received 44% and 29% of total mitigation finance respectively in 2021/2022. In contrast, 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, a 28% increase from 2019/2020, but remains far below the estimated USD 212 billion per year needed by 2030 for developing countries. This funding is 98% dominated by public actors.
• Private finance provided 49% of total climate finance (USD 625 billion), with the largest growth coming from household spending, which reached 31% of all private finance. This household growth was primarily driven by a doubling of electric vehicle (EV) sales from 2020 to 2021.
• Finance flows to the most vulnerable regions remain critically low. Less than 3% (USD 30 billion) of global climate finance went to or within least developed countries (LDCs), and the ten countries most affected by climate change 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

{{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} }