Global Landscape of Climate Finance 2025

Global climate finance reached a record USD 1.9 trillion in 2023, driven by a 30% compound annual growth rate in private finance from 2018 to 2023. While mitigation finance dominates at 94% of total flows—primarily targeting energy systems and transport—adaptation finance decreased by 16% in 2023 to USD 65 billion. Significant regional disparities persist, with 79% of finance concentrated in East Asia and the Pacific, Western Europe, and the US and Canada. Despite growth, current investment levels remain three times lower than the most conservative estimates of global needs.

• Global climate finance flows reached an all-time high of USD 1.9 trillion in 2023, having grown by an average of 26% per year between 2020 and 2023. However, current flows are still three times lower than the most conservative estimate of global annual climate investment needs, which is USD 6 trillion.
• Private climate finance has grown faster than public finance, with a compound annual growth rate of approximately 30% compared to 18% for the public sector between 2018 and 2023. Private actors provided 66% of climate finance in 2023, with private finance surpassing USD 1 trillion for the first time that year.
• Climate finance is highly concentrated geographically; 79% of global flows (USD 1.5 trillion) in 2023 went to East Asia and the Pacific (40%), Western Europe (22%), and the US and Canada (16%). China alone captured 36% of global flows, totaling USD 685 billion.
• Mitigation finance accounted for 94% of global flows in 2023 (USD 1.8 trillion), with the largest shares going to energy systems (47%) and transport (30%). In contrast, adaptation finance fell by 16% to USD 65 billion in 2023, partly due to a USD 20 billion decrease from the China Development Bank.
• The agriculture, forestry, other land use and fisheries (AFOLU) sector requires a 64-times increase in annual investment, from USD 18 billion to USD 1,170 billion through 2030, to realize its mitigation potential.

APA

Climate Policy Initiative (2025). Global Landscape of Climate Finance 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-Summary-Handout.pdf

Chicago

Climate Policy Initiative. Global Landscape of Climate Finance 2025. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-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/2025/06/Global-Landscape-of-Climate-Finance-2025-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/2025/06/Global-Landscape-of-Climate-Finance-2025-Summary-Handout.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }