How big is the Net Zero financing gap?

The document outlines the technical framework for calculating the Net Zero financing gap, detailing the criteria for climate finance data collection, the sources used for needs assessments, and the regional breakdowns for investment analysis.

• The methodology for collecting climate finance data follows six general principles to ensure accuracy and conservativeness: avoiding double counting, tracking primary investment, excluding carbon emissions lock-in, maximizing granularity, including tangible financial commitments, and erring toward conservativeness.
• To avoid double counting, the report excludes private R&D for new technologies, investment in manufacturing for low-emissions development, and policy-induced revenue support mechanisms like feed-in tariffs.
• The assessment excludes investments with a high risk of locking in future greenhouse gas emissions, specifically citing the exclusion of financing for efficiency retrofits of coal-fired power plants.
• Climate finance needs are estimated based on projected emissions pathways to reach Net Zero by 2050, utilizing data from various sources including the IEA, IRENA, BNEF, and UNEP.
• Across different modeling scenarios, the technologies consistently identified as requiring the most investment for a Net Zero transition are solar power, wind power, battery EVs, energy efficiency, and electricity transmission and distribution.

APA

Climate Policy Initiative (2023). How big is the Net Zero financing gap? https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Annex.pdf

Chicago

Climate Policy Initiative. How big is the Net Zero financing gap? 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Annex.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=How big is the Net Zero financing gap? |date=September 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Annex.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023how, author = {{Climate Policy Initiative}}, title = {{How big is the Net Zero financing gap?}}, institution = {Climate Policy Initiative}, year = {2023}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Annex.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }