Global Landscape of Climate Finance 2024

Global climate finance more than doubled between 2018 and 2022, reaching USD 1.46 trillion in 2022, yet remains far below the USD 7.4 trillion annual average needed by 2030 for a 1.5°C scenario. Mitigation finance dominates the landscape, driven by renewable energy and electric vehicles in advanced economies and China, while adaptation finance, though growing, remains severely underfunded, particularly for Least Developed Countries (LDCs) and Small Island Developing States (SIDS). The report highlights a critical imbalance, noting that fossil fuel subsidies reached USD 1.4 trillion in 2022, nearly equaling total climate finance. It recommends reforming the global financial architecture through increased concessional finance, risk mitigation, and the redirection of fossil fuel expenditures to close the investment gap.

• Annual global climate finance grew from USD 674 billion in 2018 to USD 1.46 trillion in 2022, with early estimates suggesting a further increase to USD 1.5-1.6 trillion in 2023.
• Current climate finance levels are insufficient to meet 1.5°C targets, with an estimated USD 7.4 trillion needed annually through 2030, meaning a fivefold increase from 2022 levels is required.
• Climate mitigation finance reached USD 1.3 trillion in 2022, with 94% of these flows concentrated in renewable energy, low-carbon transport, and buildings and infrastructure.
• Adaptation finance more than doubled between 2018 and 2022 to reach USD 76 billion, but it remains only one-third of the volume required annually for emerging markets and developing economies (EMDEs) until 2030.
• Fossil fuel investments and subsidies continue to rise, with consumer fossil fuel subsidies reaching USD 1.4 trillion in 2022 and global fossil fuel investment estimated at USD 1.12 trillion for 2024.
• Climate finance is highly concentrated; between 2018 and 2022, advanced economies accounted for 45% of flows and China for 36%, while Least Developed Countries (LDCs) received only 3%.
• Small Island Developing States (SIDS) face a severe funding gap, receiving only USD 1.5 billion for adaptation in 2022 despite an annual requirement of USD 12 billion.
• Dual benefits finance, which targets both emission reduction and resilience, grew at a compound annual growth rate (CAGR) of 59% between 2018 and 2022, significantly faster than standalone mitigation or adaptation flows.
• The cost of inaction is estimated to be five times greater than the climate finance needed by 2050 to achieve a 1.5°C scenario.

APA

Naran, B., Buchner, B., Price, M., Stout, S., Taylor, M., & Zabeida, D. (2024). Global Landscape of Climate Finance 2024. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Global-Landscape-of-Climate-Finance-2024.pdf

Chicago

Naran, Baysa, Barbara Buchner, Matthew Price, Sean Stout, Maddy Taylor, and Dennis Zabeida. Global Landscape of Climate Finance 2024. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Global-Landscape-of-Climate-Finance-2024.pdf.

Wikipedia

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BibTeX

@techreport{naran2024global, author = {Naran, Baysa and Buchner, Barbara and Price, Matthew and Stout, Sean and Taylor, Maddy and Zabeida, Dennis}, title = {{Global Landscape of Climate Finance 2024}}, institution = {Climate Policy Initiative}, year = {2024}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/10/Global-Landscape-of-Climate-Finance-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }