Estimating international mitigation finance needs: A top-down perspective

The document assesses the gap between current climate-specific mitigation finance and the levels required to meet a 2°C target. It highlights that while estimates vary widely due to differing assumptions and metrics, current investments are insufficient, particularly in developing countries. The analysis distinguishes between total climate-specific investment, incremental investment (above business-as-usual), and net climate-relevant finance (which accounts for avoided fossil fuel infrastructure).

• Current annual global climate-specific investment in mitigation is estimated at approximately US$435 billion, based on a combination of 2012 data from Buchner et al. (2013) and 2013 energy efficiency data from the IEA (2014b).
• Projected annual global incremental climate-specific finance needs range from US$36 billion to US$779 billion, while net incremental global climate-relevant finance (which subtracts avoided fossil fuel investment) ranges from negative US$80 billion to US$660 billion.
• Non-OECD countries are projected to require the majority of global climate-specific investment needs through 2035, including 55% for biofuels and low-carbon power and 60% for energy efficiency.
• The level of projected business-as-usual (BAU) emissions is a primary determinant of investment needs; in most studies, higher BAU emissions correlate positively with low-carbon power investment needs and negatively with fossil-fuel supply and power investment.
• Estimating energy efficiency investments is particularly challenging due to a lack of standardized tracking and varying definitions regarding what portion of an investment is considered 'efficiency'.

APA

Stockholm Environment Institute (2014). Estimating international mitigation finance needs: A top-down perspective. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-2014-DB-Climate-mitigation-finance-estimates.pdf

Chicago

Stockholm Environment Institute. Estimating international mitigation finance needs: A top-down perspective. 2014. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-2014-DB-Climate-mitigation-finance-estimates.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Estimating international mitigation finance needs: A top-down perspective |date=2014 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-2014-DB-Climate-mitigation-finance-estimates.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2014estimating, author = {{Stockholm Environment Institute}}, title = {{Estimating international mitigation finance needs: A top-down perspective}}, institution = {Stockholm Environment Institute}, year = {2014}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-2014-DB-Climate-mitigation-finance-estimates.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }