Global Landscape of Climate Finance 2025

Global climate finance reached a record USD 1.9 trillion in 2023, with private contributions exceeding USD 1 trillion for the first time. While mitigation finance more than doubled between 2018 and 2023, driven by energy and transport, adaptation finance remains significantly underfunded at USD 65 billion. Investment is heavily concentrated in East Asia and the Pacific, Western Europe, and North America, with 80% of finance sourced domestically. Despite growth, a substantial gap remains to meet the estimated annual need of USD 6.3 trillion by 2030.

• Global climate finance reached an all-time high of USD 1.9 trillion in 2023, with early data suggesting flows surpassed USD 2 trillion for the first time in 2024.
• Private climate finance exceeded USD 1 trillion in 2023, a more than 50% increase from 2022, while public climate finance declined by approximately 13% in the same period.
• Climate mitigation finance grew from USD 757 billion in 2018 to USD 1.78 trillion in 2023, with over 75% of these funds directed toward energy systems and transport.
• Tracked adaptation finance reached USD 65 billion in 2023, though this is likely an underestimate due to data gaps, particularly regarding private flows.
• Climate finance is highly concentrated, with 79% of global flows mobilized in East Asia and the Pacific, Western Europe, and the US and Canada between 2018 and 2023.
• Domestic capital is the primary driver of climate finance, with 80% of total finance sourced domestically, particularly in China, North America, and Western Europe.
• There is a significant investment gap; an average of at least USD 6.3 trillion in annual climate finance is needed from 2024 to 2030 to avoid the worst impacts of climate change.
• Debt is the dominant financial instrument for mitigation, particularly in mature markets like energy and transport, while sectors like AFOLU and waste rely more on public and concessional finance.
• International climate finance to emerging markets and developing economies (EMDEs) reached USD 196 billion in 2023, with public actors providing 78% of these funds.

APA

Naran, B., Shankar, V., Fernandes, P. D. A., Dixon, J., Burnett, J., Abraham, S., Stout, S., Connolly, J., & Strinati, C. (2025). Global Landscape of Climate Finance 2025. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/06/compressed_Global-Landscape-of-Climate-Finance-2025.pdf

Chicago

Naran, Baysa, Varun Shankar, Pedro de Aragão Fernandes, James Dixon, Joe Burnett, Sasha Abraham, Sean Stout, Jake Connolly, and Costanza Strinati. Global Landscape of Climate Finance 2025. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/06/compressed_Global-Landscape-of-Climate-Finance-2025.pdf.

Wikipedia

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BibTeX

@techreport{naran2025global, author = {Naran, Baysa and Shankar, Varun and Fernandes, Pedro de Aragão and Dixon, James and Burnett, Joe and Abraham, Sasha and Stout, Sean and Connolly, Jake and Strinati, Costanza}, title = {{Global Landscape of Climate Finance 2025}}, institution = {Climate Policy Initiative}, year = {2025}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2000/06/compressed_Global-Landscape-of-Climate-Finance-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }