Global Landscape of Climate Finance 2021 Methodology

The methodology for the Global Landscape of Climate Finance 2021 focuses on tracking primary capital flows for greenhouse gas mitigation and adaptation. It employs a conservative approach to avoid double counting and carbon lock-in, prioritizing project-level data and financial commitments over disbursements. The framework categorizes finance by instrument (grants, debt, equity), investor type (private vs. public), and a multi-layer sectoral breakdown, while applying specific assumptions for complex areas like electric vehicles and renewable energy gearing ratios.

• The methodology defines climate finance as primary capital flows targeting low-carbon and climate-resilient development, aligning with the UNFCCC Standing Committee on Finance's goal of reducing emissions and enhancing the resilience of human and ecological systems.
• To prevent double counting, the Landscape excludes private R&D, manufacturing investments for low-GHG technologies, and policy-induced revenue support mechanisms like feed-in tariffs, as these are often capitalized into the final project investment.
• The accounting scope excludes investments that risk locking in future greenhouse gas emissions, specifically prohibiting financing for efficiency retrofits of coal-fired power plants.
• The report tracks financial commitments rather than disbursements, though it notes that disbursement data is used in specific country-level Landscapes for Brazil, China, Cote d’Ivoire, Germany, India, Indonesia, Kenya, and South Africa.
• Risk management instruments, such as guarantees and insurance, are excluded from total climate finance figures because their actual disbursements are contingent on uncertain future events.
• For renewable energy projects where specific gearing ratios are unavailable, a default 70/30 debt-to-equity ratio is assumed, except for wind power projects in China, which use an 80/20 ratio.
• The methodology for electric vehicles (EVs) includes public incentives for purchases as an exception to the general subsidy rule, as these funds contribute directly to the consumption of low-carbon transport rather than flowing to vendors.

APA

Climate Policy Initiative (2021). Global Landscape of Climate Finance 2021 Methodology. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Methodology.pdf

Chicago

Climate Policy Initiative. Global Landscape of Climate Finance 2021 Methodology. 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Methodology.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Global Landscape of Climate Finance 2021 Methodology |date=December 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Methodology.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021global, author = {{Climate Policy Initiative}}, title = {{Global Landscape of Climate Finance 2021 Methodology}}, institution = {Climate Policy Initiative}, year = {2021}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Methodology.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }