Global Landscape of Climate Finance 2025

Climate finance for emerging markets and developing economies (EMDEs) surpassed USD 1 trillion in 2023, with 80% mobilized domestically. Mitigation finance dominates, accounting for 92% of flows (USD 979 billion), while adaptation finance reached USD 48 billion. China is the primary driver, providing 64% of total EMDE flows. Significant gaps remain, with annual mitigation needs estimated at USD 3.86 trillion. The report recommends strengthening domestic enabling environments, improving the quality of international finance, and increasing data transparency to scale investment.

• Total climate finance for all emerging markets and developing economies (EMDEs) exceeded USD 1 trillion in 2023, representing a rapid increase from USD 483 billion in 2018. Domestic sources provided 80% of these flows.
• China is the dominant force in EMDE climate finance, accounting for 64% of total flows (USD 685 billion) in 2023 and 69% of all mitigation flows (USD 673 billion).
• A massive investment gap exists in EMDEs, with annual mitigation needs estimated at USD 3.86 trillion through 2030. Adaptation needs for EMDEs excluding China are estimated at an annual average of USD 222 billion through 2030.
• Mitigation finance is heavily concentrated in energy systems, transport, and buildings and infrastructure (B&I), while sectors like agriculture, forestry, other land use, and fisheries (AFOLU), industry, and waste received only 3% of All EMDEs mitigation finance in 2023.
• Adaptation finance for All EMDEs totaled USD 48 billion in 2023, a 46% increase since 2018. However, these flows are highly uneven, with the top 20% of countries receiving over 70% of the total.
• International climate finance to All EMDEs reached over USD 200 billion in 2023, with public institutions providing 76% (USD 159 billion) of these flows. International private finance grew from USD 20 billion in 2018 to USD 49 billion in 2023.
• South-South climate finance (flows between EMDE-based institutions) increased from USD 16 billion in 2018 to USD 26 billion in 2023, with multilateral DFIs providing the largest share (USD 14.8 billion).
• Least Developed Countries (LDCs) rely heavily on international public finance, which made up 77% (USD 34 billion) of their flows in 2023. Grants accounted for one-third (USD 15 billion) of LDC flows in 2023.
• Dual-benefit financing, which supports both mitigation and adaptation, more than doubled from USD 18 billion in 2021 to USD 39 billion in 2023 across All EMDEs.

APA

Naran, B., Shankar, V., Price, M., Dixon, J., Abraham, S., Diaz, J., & Barron, M. (2025). Global Landscape of Climate Finance 2025. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight.pdf

Chicago

Naran, Baysa, Varun Shankar, Matthew Price, James Dixon, Sasha Abraham, Jose Diaz, and Mairead Barron. Global Landscape of Climate Finance 2025. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight.pdf.

Wikipedia

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BibTeX

@techreport{naran2025global, author = {Naran, Baysa and Shankar, Varun and Price, Matthew and Dixon, James and Abraham, Sasha and Diaz, Jose and Barron, Mairead}, title = {{Global Landscape of Climate Finance 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2000/10/Global-Landscape-of-Climate-Finance-2025-EMDE-Spotlight.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }