Global Landscape of Climate Finance 2023

Global climate finance reached an annual average of nearly USD 1.3 trillion in 2021/2022, though this represents only 1% of global GDP. Mitigation finance dominates, particularly in energy and transport, while adaptation finance remains critically underfunded and dominated by public actors. Finance is heavily concentrated in developed economies and China, with significant gaps in least developed countries (LDCs) and emerging markets. The report argues that annual needs must increase at least five-fold to avoid the worst impacts of climate change, recommending reforms to international financial institutions and the mobilization of domestic capital.

• Average annual climate finance flows reached nearly USD 1.3 trillion in 2021/2022, nearly doubling from 2019/2020 levels, though this amount is only about 1% of global GDP.
• Annual climate finance needs are projected to increase steadily from USD 8.1 trillion to USD 9 trillion through 2030, jumping to over USD 10 trillion annually from 2031 to 2050.
• Mitigation finance totaled USD 1.15 trillion in 2021/2022, with energy (44%) and transport (29%) attracting the majority of flows, while agriculture and industry received less than 4%.
• Adaptation finance reached a record USD 63 billion in 2021/2022, but this is far below the estimated USD 212 billion per year needed by developing countries by 2030.
• Climate finance is geographically concentrated, with East Asia and the Pacific, the US and Canada, and Western Europe accounting for 84% of total flows; China alone provided 51% of all domestic climate finance globally.
• Private actors provided 49% of total climate finance (USD 625 billion), with a significant increase in household spending (31% of private finance) driven by electric vehicle sales.
• Least developed countries (LDCs) received only USD 30 billion (less than 3% of the global total), and the ten countries most affected by climate change between 2000 and 2019 received just USD 23 billion.
• Debt is the primary financial instrument for climate finance, representing 61% (USD 766 billion) of total flows, with market-rate debt making up 53% of all tracked finance.
• South-South climate finance remains very low, accounting for under 2% of total flows (USD 18.1 billion), with the majority committed by countries in Latin America and the Caribbean.

APA

Buchner, B., Naran, B., Padmanabhi, R., Stout, S., Strinati, C., Wignarajah, D., Miao, G., Connolly, J., & Marini, N. (2023). Global Landscape of Climate Finance 2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf

Chicago

Buchner, Barbara, Baysa Naran, Rajashree Padmanabhi, Sean Stout, Costanza Strinati, Dharshan Wignarajah, Gaoyi Miao, Jake Connolly, and Nikita Marini. Global Landscape of Climate Finance 2023. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf.

Wikipedia

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BibTeX

@techreport{buchner2023global, author = {Buchner, Barbara and Naran, Baysa and Padmanabhi, Rajashree and Stout, Sean and Strinati, Costanza and Wignarajah, Dharshan and Miao, Gaoyi and Connolly, Jake and Marini, Nikita}, title = {{Global Landscape of Climate Finance 2023}}, institution = {Climate Policy Initiative}, year = {2023}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }