Global Climate Finance: An Updated View 2018

The report updates global climate finance estimates for 2015 and 2016, finding an annual average of USD 463 billion. While private investment remains the dominant source, particularly in renewables and the growing electric vehicle sector, the report highlights significant data gaps in tracking adaptation and energy efficiency. It also discusses the challenges of operationalizing Article 2.1(c) of the Paris Agreement to ensure all financial flows are consistent with low-emission and climate-resilient development.

• Revised global climate finance flows are estimated at USD 472 billion for 2015 and USD 455 billion for 2016, resulting in an annual average of USD 463 billion for the period. This average is 27% higher than the 2013/2014 period, partly due to the integration of electric vehicle sales and new data from national development finance institutions.
• Private finance actors, including project developers, corporations, and commercial banks, provide the majority of climate investments, accounting for 54% of flows annually between 2015 and 2016.
• Investment in renewable energy, the largest sector in climate finance, decreased by 16% from 2015 to 2016. This decline was driven by both falling technology costs and a reduction in the number of projects financed, influenced by policy changes in the UK, Japan, Germany, and China.
• Sustainable transport now represents 20% of climate finance flows. Investment in electric vehicles has seen a compound annual growth rate of 54% since 2012, with total investment in electric passenger vehicles reaching USD 43 billion in 2017.
• Adaptation finance is significantly lower than mitigation, estimated at USD 22 billion per year. Tracking this finance is difficult due to reporting variations and data gaps, as adaptation activities are often embedded within larger projects.
• The majority of climate finance (81%) is spent domestically. Developing countries are the primary destination for climate investment, receiving 58% of total flows (USD 270 billion), with the East Asia and Pacific region (non-OECD) receiving the largest share at 39%.
• Current climate finance levels are insufficient compared to the requirements for a 1.5 degree Celsius scenario, which the IPCC estimates requires an energy system investment of USD 1.6-3.8 trillion.

APA

Oliver, P., Clark, A., & Meattle, C. (2018). Global Climate Finance: An Updated View 2018. Climate Policy Initiative. https://climatepolicyinitiative.org/wp-content/uploads/2018/11/Global-Climate-Finance-An-Updated-View-2018.pdf

Chicago

Oliver, Padraig, Alex Clark, and Chavi Meattle. Global Climate Finance: An Updated View 2018. Climate Policy Initiative, 2018. https://climatepolicyinitiative.org/wp-content/uploads/2018/11/Global-Climate-Finance-An-Updated-View-2018.pdf.

Wikipedia

{{cite report |last1=Oliver |first1=Padraig |last2=Clark |first2=Alex |last3=Meattle |first3=Chavi |title=Global Climate Finance: An Updated View 2018 |publisher=Climate Policy Initiative |date=November 2018 |url=https://climatepolicyinitiative.org/wp-content/uploads/2018/11/Global-Climate-Finance-An-Updated-View-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{oliver2018global, author = {Oliver, Padraig and Clark, Alex and Meattle, Chavi}, title = {{Global Climate Finance: An Updated View 2018}}, institution = {Climate Policy Initiative}, year = {2018}, month = nov, url = {https://climatepolicyinitiative.org/wp-content/uploads/2018/11/Global-Climate-Finance-An-Updated-View-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }