Global Landscape of Climate Finance 2025

The 'Global Landscape of Climate Finance 2025: EMDE Spotlight' fact sheet analyzes climate finance flows to emerging markets and developing economies (EMDEs). It reports that while total climate finance to these 157 countries surpassed USD 1 trillion in 2023, there remains a significant gap compared to the estimated USD 4 trillion required annually by 2030. The document highlights the dominance of China in overall flows, the growth of domestic private financing in emerging markets, and the persistent underfunding of adaptation and hard-to-abate sectors.

• Emerging markets and developing economies (EMDEs) face a substantial financing gap, requiring nearly USD 4 trillion in annual climate finance until 2030 to achieve climate goals.
• Total climate finance to All EMDEs exceeded USD 1 trillion in 2023, with 80% (USD 857 billion) sourced domestically. China was the primary driver, accounting for 64% of these flows, totaling USD 685 billion.
• Mitigation finance dominated tracked flows in 2023, representing 92% (USD 979 billion) of the total. However, this is far below the estimated annual need of USD 3.86 trillion for EMDEs through 2030.
• Within mitigation, renewable energy and transport are the leading sectors. Renewable energy accounted for 80% of newly installed power generation capacity across All EMDEs in 2023, while transport finance grew at a 26% CAGR from 2018 to 2023.
• Adaptation finance for All EMDEs totaled USD 48 billion in 2023, a 46% increase since 2018, but remains insufficient and unevenly distributed, with the top 20% of countries receiving over 70% of these funds.
• International climate finance to All EMDEs exceeded USD 200 billion in 2023, with public sources providing USD 159 billion. International private finance grew from USD 20 billion in 2018 to USD 49 billion in 2023, with Western Europe contributing 59% (USD 29 billion) of these private flows.
• South-South climate flows between EMDE-based institutions increased from USD 16 billion in 2018 to USD 26 billion in 2023. This includes a 60% increase in green energy investment via China's Belt and Road Initiative from 2022 to 2023, reaching USD 11.8 billion.

APA

Climate Policy Initiative (2025). Global Landscape of Climate Finance 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight-Summary-Handout.pdf

Chicago

Climate Policy Initiative. Global Landscape of Climate Finance 2025. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight-Summary-Handout.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Global Landscape of Climate Finance 2025 |date=November 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight-Summary-Handout.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025global, author = {{Climate Policy Initiative}}, title = {{Global Landscape of Climate Finance 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight-Summary-Handout.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }