IDFC GREEN FINANCE MAPPING REPORT 2025

In 2024, IDFC members committed $173 billion in green finance, a 13% decrease from 2023, primarily driven by shifts in investment priorities among a few large institutions. Despite the overall decline, 14 of 23 responding members increased their commitments. Climate finance dominated at $167 billion, with mitigation ($140 billion) remaining the primary focus, while adaptation finance saw a 54% increase to $17 billion. Biodiversity finance totaled $8 billion. The report highlights the pivotal role of non-OECD institutions, which provided 72% of climate finance, and emphasizes the need to target underfunded sectors such as AFOLU, fisheries, and industry.

• IDFC members reported total green finance commitments of $173 billion in 2024, representing a 13% decrease from 2023. This decline was concentrated among a few members with larger portfolios, such as the China Development Bank (CDB), which saw a 16% decrease in financing due to shifting investment priorities.
• Climate finance accounted for 96% of total green finance in 2024, totaling $167 billion. Mitigation finance remained the dominant component at $140 billion (84% of climate finance), though it decreased by 23% from $175 billion in 2023.
• Adaptation finance experienced a significant rebound, totaling $17 billion in 2024, a 54% increase from 2023. This growth was largely driven by larger portfolios, specifically the China Development Bank (CDB), which doubled its investments since 2023.
• Biodiversity finance reached $8 billion in 2024, with $5.6 billion invested at the climate-nature nexus and $2.3 billion solely targeting biodiversity. Water preservation was the largest sector for biodiversity finance, receiving $2.6 billion (33% of total biodiversity commitments).
• Non-OECD-based institutions provided the majority of IDFC climate finance in 2024, totaling $115 billion (72% of the total). This trend is primarily driven by domestic commitments in China by the CDB.
• Geographically, East Asia and the Pacific was the largest recipient of climate finance in 2024, accounting for 63% ($100 billion) of the total, followed by Western Europe (17%) and Latin America and the Caribbean (10%).
• Loans were the primary financial instrument used, accounting for $151 billion or 94% of climate finance. Concessional loans totaled $29 billion, representing approximately 20% of total financing in 2024, a decline from 29% in 2023.
• There is a significant financing gap in the AFOLU (agriculture, forestry, and other land use) and fisheries sector, which received only $980 million in mitigation commitments in 2024, representing just 0.7% of total mitigation commitments despite high mitigation potential.
• IDFC members are increasingly aligning with the Baku-to-Belém Roadmap through three key areas: operationalizing Article 6 carbon market mechanisms, leveraging country platforms (such as South Africa's JETP and Brazil's Ecological Transformation Investment Platform), and advancing transformational finance.

APA

Climate Policy Initiative (2025). IDFC GREEN FINANCE MAPPING REPORT 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/IDFC-Green-Finance-Mapping-Report-2025-2.pdf

Chicago

Climate Policy Initiative. IDFC GREEN FINANCE MAPPING REPORT 2025. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/IDFC-Green-Finance-Mapping-Report-2025-2.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=IDFC GREEN FINANCE MAPPING REPORT 2025 |date=November 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/IDFC-Green-Finance-Mapping-Report-2025-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025idfc, author = {{Climate Policy Initiative}}, title = {{IDFC GREEN FINANCE MAPPING REPORT 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/IDFC-Green-Finance-Mapping-Report-2025-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }