Global Landscape of Climate Finance 2025

The document outlines a comprehensive framework for tracking global climate finance, focusing on real-economy investments in mitigation, adaptation, and dual-benefit activities. It defines a multi-layered taxonomy covering finance origins (domestic, international, indeterminate), actors (public, private, third-sector), and financial instruments. The methodology emphasizes a conservative approach to avoid double counting and carbon lock-in, utilizing a mix of primary project-level data and secondary market-sizing benchmarks from sources like the IEA and BNEF. Key 2025 updates include the integration of Luxembourg Green Exchange bond data, a new project-level hydrogen investment dataset, and the first-time inclusion of 2- and 3-wheeler electric vehicle sales in China and India.

• CPI defines climate finance through three primary objectives: mitigation finance for reducing or avoiding GHG emissions, adaptation finance for reducing vulnerability and increasing resilience, and dual benefits finance for activities meeting both criteria.
• The tracking framework focuses exclusively on real-economy investments—direct allocations to projects and physical assets—and excludes secondary market transactions, such as the resale of stakes, as they do not represent new climate-specific investments.
• To prevent carbon lock-in, the methodology excludes investments in fossil-fuel-based generation and efficiency retrofits for coal-fired power plants, even if they reduce emissions in the short term.
• The 2025 methodology introduces a new project-level dataset for hydrogen investment, replacing the previous market-sizing approach to improve transparency and accuracy.
• For the first time, the 2025 report includes investments in 2- and 3-wheeler electric vehicles, specifically focusing on the dominant markets of China and India.
• CPI has integrated data from the Luxembourg Green Exchange (LGX) to improve the granularity of green bond allocations, particularly in the transport, water, buildings, and AFOLU sectors.
• The methodology employs an AI-based 'adaptation likelihood model' to estimate whether non-climate-tagged projects in the water and wastewater sector support climate adaptation.
• A new attribution method for transmission and distribution (T&D) infrastructure is being tested in the 2025 Annex, using a 67% renewable energy generation threshold over five years to determine climate alignment for new connections.
• The framework categorizes countries by development status using IMF and UN classifications, dividing them into advanced economies, emerging markets and developing countries (EMDEs), and least developed countries (LDCs).

APA

Climate Policy Initiative (2025). Global Landscape of Climate Finance 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-Methodology.pdf

Chicago

Climate Policy Initiative. Global Landscape of Climate Finance 2025. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-Methodology.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Global Landscape of Climate Finance 2025 |date=July 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-Methodology.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025global, author = {{Climate Policy Initiative}}, title = {{Global Landscape of Climate Finance 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Global-Landscape-of-Climate-Finance-2025-Methodology.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }