Global Landscape of Climate Finance 2025

The Global Landscape of Climate Finance 2025 summary handout reports that global climate finance reached a record USD 1.9 trillion in 2023, driven largely by private sector growth. Despite this increase, a significant gap remains between current flows and the investment needed to meet global climate goals, with mitigation finance dominating the landscape while adaptation finance saw a decline in 2023.

• Global climate finance reached an all-time high of USD 1.9 trillion in 2023, reflecting an average annual growth rate of 26% between 2020 and 2023. If this growth trend persists, annual climate investment could reach USD 6 trillion by 2028, which represents the most conservative estimate of global needs. However, the lower bound of estimated global climate finance needs is currently 3 times higher than actual flows.
• 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 from 2018 to 2023. In 2023, private actors provided 66% of total climate finance, surpassing USD 1 trillion for the first time (a 44% increase from 2022). Growth was significantly driven by households and individuals, who contributed 37% of private finance, primarily for solar, battery electric vehicles (BEVs), and energy-efficient housing.
• Public climate finance decreased by 13% to USD 646 billion in 2023, largely due to a 47% drop in flows from national development finance institutions (DFIs). Development finance institutions overall remained key providers, accounting for 46% of public finance (USD 300 billion) and 16% of the global total in 2023.
• Climate finance is highly concentrated geographically and sectorally. In 2023, 79% of global finance (USD 1.5 trillion) went to East Asia and the Pacific (40%), Western Europe (22%), and the US and Canada (16%), with China alone capturing 36% of global flows (USD 685 billion). Sectorally, mitigation finance accounted for 94% of flows (USD 1.8 trillion), primarily targeting energy systems (47%) and transport (30%). Conversely, adaptation finance fell 16% to USD 65 billion in 2023, partly due to a USD 20 billion decrease from the China Development Bank.
• Between 2018 and 2023, the vast majority of climate finance (over 90%, totaling USD 6.4 trillion) was provided as debt and equity expecting market-rate returns. Debt represented 61% (USD 4.4 trillion) of these flows, equity 33% (USD 2.4 trillion), and grants 4% (USD 282 billion). Concessional finance made up less than 10% (USD 686 billion).

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} }