Climate Finance Is Becoming Multipolar | World Resources Institute

An analysis of 14 major economies outside the traditional UNFCCC contributors reveals that they provided approximately $102 billion in voluntary climate finance from 2013 to 2023. The study highlights a shift toward a multipolar finance reality, where emerging markets and developing economies (EMDEs) are increasingly active, though their contributions remain fragmented in official reporting. The report emphasizes the need for inclusive reporting frameworks and the scaling of triangular partnerships and de-risking mechanisms to mobilize further private capital to meet global climate goals.

• Between 2013 and 2023, 14 major economies outside the traditional Annex II contributors provided roughly $102 billion in voluntary climate finance. Of this, emerging markets and developing economies (EMDEs) contributed $86.2 billion, averaging $7.8 billion annually. Funding has accelerated recently, with 2023 flows reaching $17.1 billion, which is more than triple the amount recorded in 2013.
• Climate finance from non-traditional providers is highly concentrated by both source and channel. China, South Korea, India, and Brazil accounted for 72% of the total estimated flows. Furthermore, multilateral public climate finance—primarily through multilateral development banks (MDBs) and climate funds—represented nearly 80% of these contributions in 2023.
• Non-traditional providers employ diverse financial and diplomatic strategies. South Korea utilizes a model of numerous small grants, while China and India favor larger, capital-intensive infrastructure transactions, often through export credit agencies. Saudi Arabia's transactions have focused heavily on resilience and disaster reconstruction, such as efforts in Pakistan following 2014 floods.
• Finance from non-Annex II countries is less likely to reach the world's least-developed countries compared to traditional providers; only 8% of the sampled finance went to these nations, with nearly half of that portion directed to Ethiopia.
• To reach the $1.3 trillion NCQG target, the report suggests scaling 'triangular partnerships' involving EMDEs, advanced economies, and multilateral institutions to resolve risk and capacity barriers. Examples include the Zorlu Energy Wind Farm in Pakistan and the use of de-risking tools like the China Export Insurance Corporation (SINOSURE) and the World Bank's Multilateral Investment Guarantee Agency (MIGA).

APA

World Resources Institute (2026). Climate Finance Is Becoming Multipolar | World Resources Institute. https://www.wri.org/technical-perspectives/non-traditional-climate-finance

Chicago

World Resources Institute. Climate Finance Is Becoming Multipolar | World Resources Institute. 2026. https://www.wri.org/technical-perspectives/non-traditional-climate-finance.

Wikipedia

{{cite report |author=World Resources Institute |title=Climate Finance Is Becoming Multipolar | World Resources Institute |date=24 June 2026 |url=https://www.wri.org/technical-perspectives/non-traditional-climate-finance |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2026climate, author = {{World Resources Institute}}, title = {{Climate Finance Is Becoming Multipolar | World Resources Institute}}, institution = {World Resources Institute}, year = {2026}, month = jun, url = {https://www.wri.org/technical-perspectives/non-traditional-climate-finance}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }