气候政策倡议组织CPI：2026全球气候融资格局报告

GlobalLandscapeofClimateFinance2026

CLIMATE

POLICY

INITIATIVE

2

AUTHORS

SashaAbraham,PedrodeAragaoFernandes,JakeConnolly,VarunShankar,MatthewPrice,JamesDixon,JulietteAllisyVidelaine,EddieDilworth,DanielAbutu,andChaviMeattle.ThisworkwasconductedundertheguidanceofDr.BarbaraBuchner.

CONTRIBUTORS

ThereportalsobenefitedfromtheexpertcontributionsofCPIcolleagues

includingCostanzaStrinati,MaireadBarron,ChristinaLee,MorganRichmond,PallaviSherikar,JoseDiaz,WilliamWallock,CharlesBaudry,JessiePress-

Williams,AlexandreKirchherr,TingluZhang,andMedhaSinha.

Thereportwascopy-editedbyKirstyTaylorandJanaStupperich.

DatavisualizationdesignandlayoutwasledbyAngelaWoodall-Pavuk,PaulineBaudry,ElanaFortin,andConstantinNimigean.

ACKNOWLEDGMENTS

TheauthorswouldalsoliketothankCPIcolleaguesDharshanWignarajah,

BellaTonkonogy,RobKahn,PriscillaNegreigos,ValerioMicale,JonathanFirst,

FrederickFabian,NicolePinko,TiniThomas,NehaKhanna,UmaPal,Jaspreet

Kaur,LucieXia,AkshayNambiar,BilegsaikhanByambadorj,SeanStout,andBaysaNaran,whoprovidedadvice,editingandinternalreview.

TheauthorswouldalsoliketorecognizeCPI'sinternsfortheircontributionstothiswork:DanialFirdaus,RiyaDhawan,andMinahilNadeem.

Wearealsogratefultodevelopmentfinanceinstitutionsforsharingvaluabledatathatinformsthereportanditsanalysis,aswellasCharleneWatson(independentexpert),TimBosch(GermanFederalMinistryforEnvironment,Climate,NatureandNuclearSafety),andDanGrishinandcolleagues(UKDepartmentforEnergySecurityandNetZero),aswellasallmembersoftheCPIClimate-Aligned

ClimateFinanceTrackingGroupfortheirexpertreview.

CONTACT

PedrodeAragãoFernandes,

pedro.fernandes@

PRESSCONTACT

media@

ABOUTCLIMATEPOLICYINITIATIVE

CPlisananalysisandadvisoryorganizationwithdeepexpertiseinfinance

andpolicy.Ourmissionistohelpgovernments,businesses,andfinancial

institutionsdriveeconomicgrowthwhileaddressingclimatechange.CPIhas

officesinAustria,Brazil,India,Indonesia,SouthAfrica,theUnitedKingdom,andtheUnitedStates.

RELATEDCPIWORKS

GLCFDataDashboard

AssessingTop-DownClimateFinanceNeedsMethodology(2025)

GlobalLandscapeofClimateFinance2025:EMDESpotlight(2025)NetZeroFinanceTracker

AssessingtheQualityofAdaptationFinance

RECOMMENDEDCITATION

ClimatePolicyInitiative.2026.GlobalLandscapeofClimateFinance2026.

Copyright◎2026ClimatePolicylnitiative

.All

ightsreserved.CPIwelcomestheuseofitsmaterial

fornoncommercialpurposes,suchaspolicydiscussionsoreducationalactivities,underaCreativeCommonsAttribution-

NonCommercial-ShareAlike4.0International(CCBY-NC-SA4.0)License.Forcommercialuse,pleasecontact

.

GlobalLandscapeofClimateFinance2026

Executivesummary

MAINTAININGMOMENTUMAMIDSHOCKS

GlobalclimatefinancesurpassedUSD2trillionforthefirsttimein2024.Flowshave

growneveryyearoverthelasthalf-decade,despiteCOVID-19,energymarketvolatility,

sovereigndebtpressure,andgeopoliticalconflicts.Thispointstoresilientunderlying

momentumandamaturinginvestmentmarketforkeyclimatesolutions,notafragileniche.

Whiletheannualrateofclimatefinancegrowthslowedto6%in2024,from16%and

22%inthetwopreviousyears,theimpactpotentialofinvestmentisincreasing.Ascleantechnologiesbecomecheaper,morescalable,andcommerciallyviable,eachclimatedollarcandelivergreateremissionreductionsandresiliencebenefits.Earlypolicysupportand

investmenthavemovedrenewableenergyfromanemergingtechnologyintoacompetitiveinvestmentopportunity.Asaresult,mitigationfinancereachedUSD1.9tillionin2024.

Thereisnowopportunitytoexpandthatsuccessacrossawiderrangeofclimatesolutionsneededforalow-carbon,climate-resilientfuture.Atthesametime,risingcostsofinactionforeconomies,businesses,andcommunitiesincreasetheurgencyandscaleofthisneed.

FurtheraccelerationmusttakeustoatleastUSD6.2trillionannuallyby20351toensureaclimate-aligned,sustainableworldwhereeverypersoncanthrive.

1USD6.2tillionistheminimumlevelofinvestmentneedsidentifiedacrossallscenariosanalyzedaspartofCPl's

Top-DownNeedsAssessment,representingalowerboundofestimatedneedsratherthananexplicittarget.Seep.13fordetails.

GlobalLandscapeofClimateFinance2026ExecutiveSummary

CURRENTENGINESOFGROWTH

Thereareseveralkeyreasonswhyclimatefinancecontinuestogrow,despiteheadwinds:

DOMESTICMARKETS,INCLUDINGHOUSEHOLDS,AREBOOSTING

GROWTH:OverUSD1.7trillion(or85%)ofclimateinvestmentwas

throughdomesticmarketsin2024,withthevastmajoritygoingtowardmitigation.Domesticprivateactorsaccountedfor60%oftotalmitigationfinance,havingdrivenaround70%ofnetgrowthsince2019.Aspartofthis,householdsinvestedUSD332billion(around20%ofalldomestic

climatefinance)inlow-carbonsolutions.TheseincludedEVs,efficient

appliances,heatpumps,andsmall-scalerenewables,takingadvantageoffallingcosts,betterperformance,shorteningpaybackperiods,andfiscalincentives.Thisbottom-upinvestmentisimprovingenergyefficiency,gridstability,andreducingexposuretofossilfuelpricevolatility.

STRONGPOLICIESARESUPPORTINGPRIVATEINVESTMENT:FromEUcarbonpricingandbuildingstandards,toIndia'ssolarandgreen

hydrogeninitiatives—strongpolicysignalsarecoincidingwithlarge-

scaleprivateinvestmentinenergy,transport,andbuildings.FlowsfromcommercialfinancialinstitutionsmorethandoubledtoUSD572billionfrom2019to2024,supportedbypolicies,transitionplanning,improvingeconomics,andincreasinglystandardizedinvestmentstructuressuchaspowerpurchaseagreements.

EMDEsAREINTHEDRIVINGSEATFORFUTUREGLOBALGROWTH:

Climatefinanceremainshighlyconcentrated,withadvancedeconomiesandChinaconsistentlyaccountingforaround80%ofglobalflowssince2019.However,emergingmarketsanddevelopingeconomies(EMDEs)excludingChinaandleastdevelopedcountries(LDCs)arenowgrowingatafasterratethanothercountrygroupings.The25%compoundannualgrowthrate(CAGR)oftheirclimatefinancesince2022isthehighest

ofallcountrygroupings.South-Southflowsalsodoubledsince2021,

reachingUSD27billionin2024.2ThishighlightsEMDEs'rolesasbothrecipientsandprovidersofcapital,technology,andimplementation

capacity.Asclimatefinancegrowthfacesconstraintselsewhere,SouthAsia,sub-SaharanAfrica,andLatinAmericaholdsignificantinvestmentopportunitiesinareasincludinggridexpansion,utility-scaleand

distributedsolar,andcleantransport.

ENERGYSECURITYISBECOMINGMOREAFFORDABLEPERCLIMATEDOLLAR:Fallingtechnologycostsmeaneachdollarbuysmoreclean

capacity.From2010to2024,thelevelizedcostofelectricityfellby

around90%forsolarPV,70%foronshorewind,62%foroffshorewind,and93%forbatterystorage,makingmostnewutility-scalerenewablescheaperthannewfossilalternatives(IRENA,2025).Cleanenergy

investmentgrewby17%in2024andnowaccountsforaroundhalfofmitigationfinance.Thisreflectsastructuralshifttowardelectrification,deploymentofrenewablepower,andenergysecurityascountries

seektoreduceexposuretovolatilefossilfuelmarketswhilemeetingrisingelectricitydemand.Cleanenergyinvestmentisnowestimatedatroughlytwicethatoffossilfuels,withrenewablesandbatterystoragecentraltotheshift.

2South-SouthflowsareasubsetofclimatefinanceflowstoallEMDEs,coveringonlytheinvestmentthatcomesfromotherEMDEs.

4

GlobalLandscapeofClimateFinance2026ExecutiveSummary

FURTHERLEVERSFORCHANGE

Progressdoesnotonlydependonincreasingclimatefinancevolumes.Italsorequiresdefragmentationacrossactorsandfinancethatisbettertargeted,betterstructured,andbetteralignedwithriskandreal-economyneeds.

·GROWTHISSLOWINGWHENACCELERATIONIS

NEEDED.Whileannualclimatefinancevolumesreachedrecord

levels,growthhasdeceleratedfroma30%surgein2021to6%

in2024andanestimated2-3%in2025.Attheserates,flows

cannotreacheventhelowestestimatedmitigationneedsuntilwellintothe2030s,puttinginvestmentfurtherofftrack.Whilesomedecelerationmayreflectcasesofmaturingmarketsordeclining

cleantechnologycosts,astepchangeisstillrequiredtomovefromincrementalexpansiontosustained,double-digitgrowth.

·RETREATINGINTERNATIONALPUBLICFLOWSRAISETHE

IMPORTANCEOFDOMESTICANDCATALYTICSOLUTIONS.

Afterincreasingby33%in2022and20%in2023,internationalpublicclimatefinancefellby6%in2024.Tighteningfiscalspace,competingbudgetarydemands,andhigherinterestrateshave

constraineddonorcountries'concessionallending,pointingtoastructural,notcyclical,retreat.Thisshiftraisestheimportanceofdomesticresourcemobilization,capitalmarketdeepening,and

policyreform,aswellasrenewedresolveforandeffectivenessofinternationalcooperationonclimate.Countriesandsectorswithweakerfinancialsystems,higherrisks,orlimitedprojectpipelinesrequiretargetedsupporttoattractinvestment.Development

financeproviderswillneedtotargettheircapitaltoleverageadditionalinvestment.

·ACTORSMUSTCOLLABORATETOSUPPORTLDCsAS

DEVELOPMENTFINANCECOMESUNDERSTRAIN.LDCssawa24%year-on-yeardecreaseininternationalpublicclimate

flowsin2024.Grantsandhighlyconcessionalpublicdebt

remainirreplaceableformanyLDCs,giventheirlimitedfiscalspace,yetbothhavefallenfortwoconsecutiveyears.More

effectivecoordinationbygovernments,publicdevelopment

banks,andmultilateralclimatefundsisneededtostretchscarcepublicresources.Blendedfinanceandgreatercrowding-inof

long-termprivatefinancewillbevitaltobridgesustainabledevelopmentfundinggaps.

·PUBLICFINANCECANSHIFTFROMCOMMERCIALLYVIABLETECHNOLOGIESTOOTHERAREAS.Nearly95%ofmitigation

financegoestothreesectors—energy,transport,andbuildings—wheremanytechnologiesaremature,incentivesclear,and

revenuemodelsestablished.Othersectorswithhighabatement

potential—suchasindustry,AFOLU,andwaste—receivesmallandvolatileshares,reflectingmoreuncertainbusinessmodels,highertechnologyorimplementationrisks,weakerpolicyenvironments,andfragmentedbeneficiaries.Publicandblendedfinancemust

avoidcompetingwithprivatecapitalinmaturesectorsandcreatepipelinesandde-riskinvestmentwherecommercialfinanceis

notyetscaling.

·ANINFLECTIONPOINTFORADAPTATIONFINANCETO

SUSTAINDEVELOPMENTGAINS.Adaptationinvestmenthasincreasedsince2019,albeitfromalowbase.WithflowsreachingUSD64billionin2024,theymustacceleraterapidlytosafeguarddevelopmentprogressandcurbrisinginequality.Aligningpublicandprivateinvestmentportfolioswithgrowingclimateriskscanhelpmeetthescaleandurgencyofthechallenge.Publicfundersshouldreplicatesuccessfulmodelstocatalyzeprivatecapital.

Improvementstoidentification,quantification,andreportingofadaptationfinancemayalsocapturecurrentlyuntrackedflows.

5

CLIMATE

POLICY

INITIATIVE

LANDSCAPEOFCLIMATEFINANCEIN2024

ValuesareinUSDbillion

SOURCESANDINTERMEDIARIES

Whichtypesoforganizationsaresourcesorintermediariesofcapitalforclimatefinance?

Govemments

$140

NationalDFls

$126

MtilateralDFls

$120

StateownedFls

$172

INSTRUMENTS

Whatmixoffinancialinstrumentsisused?

Grants$134

Publicprojectdebt(concessional)$51

Public

projectdebt

(non-concessional)$296

BLaterdDFls534

ClimateFunds$3

SOEs$157

Other*$24

Commercial

projectdebt$387

Project

equity$84

Unknown$6

CommerdialFls

$572Debt

$321

unknown

Balancesheetfinancing

$327

Households/

Indviduals

$333

PUBLICPRIVATE

Equity

$729

"Other"publicsourcesincludeexportcreditagenciesandunknownpublicfunds"Other"privatesourcesincludeinstitutionalinvestors,funds,philanthropies,and

TRILLIONIN2024

CLIMATEUSES

Whatclimatechallengedoflowstarget?

Adaptation$64

SECTORS

Whatisthefinanceusedfor?

Unknown$0.02

AFOLU*$21

ICT*$2

Industry$29

USD

2

DEVELOPMENTSTATUS

Whatisthedevelopmentstatusofthedestinationcountry?

Transregional$22LDCs$36

DualBenefits$36

Waste$10

Water&

Emerging

Markets

$390

Wastewater$45

Cross-sectoral$86

Buildings&

Infrastructure

$364

China$737

Transport$497

Mitigation$1,907

Energy

Advanced

Economies

$822

Systems

$954

*AFOLU:Agriculture,forestry,otherlanduse,andfisheries.

*ICT:Informationandcommunicationtechnology.

7

GlobalLandscapeofClimateFinance2026ExecutiveSummary

Recommendationsoverview

Fouragendascanhelpdriveclimateinvestmenttowhereitcanmakethegreatestimpact:

Agenda1:Alignclimateinvestmentwithoutcomesthatmattertopeople

Agenda2:Advancecountryownership

andenablingconditions

Agenda3:Deepenadaptation

finance

Agenda4:Scaleprivatecapital

mobilization

Strengtheningenergy,food,andeconomicsecurity

Reducingfragmentationbybetter

aligningdomesticandinternational

financeandpolicyatthecountrylevel

Expandingreach,raisingquality,and

buildingdomesticcapacityforclimate

anddevelopmentresilience

Replicatingprovenapproachesacross

marketsanddeployinginstrumentsthat

canreducethecostofcapital

a)Embedsecurityandcompetitiveness

inthecleanenergytransition,avoidingcostlyfossilfuellock-in.

b)Ensureclimateinvestmentalignswithfoodsecurity,protectingandboostinglivelihoods,andeconomicresilience.

a)Makecountry-ledinvestmentstrategiestheorganizingframework,anchoredinfiscalandfinancialrealities.

b)Buildcountry-ledsystemsforeffectivedomesticinvestmentandlocal

implementationanddelivery.

a)Useresilienceinvestmentasatooltomanagefiscalandfinancialriskandbuilddomesticcapacitytoactonclimaterisk

b)Ensureadaptationfinancingapproachescapturethefullbreadthofactivitiesthatbuildclimateresilienceandguardagainstmaladaptation.

c)Applyrigorousqualitystandardstoallformsofadaptationfinance.

a)Shiftprivateportfoliosandproductstowardclimate-alignedinvestment

inEMDEs,buildingontheenablingenvironmentcreatedbytheearlierrecommendations.

b)Ensurehigh-potential,underserved

sectorsandmarketsarenotleftbehindinthescale-upofprivateclimate

investment.

c)Useregionalinstitutionstochannelandde-riskclimatefinance,improvingriskunderstandingandreducingthecostofcapital.

Contents

Introduction52

14Driversofgrowthin202461

24Mitigationfinance66

35Adaptationfinance74

44EMDEspotlight

Recommendations

References

AnnexI:Methodologicalnotes

AnnexII:Complementarydata

GlobalLandscapeofClimateFinance2026Introduction

10

Themostcomprehensiveanalysisofclimatefinancetrends

TheGlobalLandscapeofClimateFinance(GLCF)tacklesthecorequestionsofglobal

climatefinance:Howmuchclimatefinanceisflowing?Whereisitcomingfrom?Whereisitflowingto?Andhowisitbeingdelivered?Supportedbythemostrigorousmethodologiesinthefield(seeBox1),theGLCFlaysanevidence-basedfoundationforidentifyingtrends,contextualizinggaps,andtrackingprogress.Thisreportprovidesauthoritativenumberstomapinsightsacrossusesandsourcesoffinance,instruments,sectors,andregions.

Fiveconsecutiveyearsofincreasingclimatefinance—andrecordflowssurpassing

USD2trillionin2024-pointtoresilientunderlyingmomentumamidglobalchallenges.

However,therateofgrowthhasslowed.Withsubstantiveshiftsintheinternational

orderreshapingglobalclimateanddevelopmentcooperation,itistimeforafreshlookat

strengtheningtheinternationalclimatefinancearchitecturetoretainresiliencetoshocksandsustainprogress.Thisreportprovidestherobustevidenceandanalysisneededtopursue

progressinthecurrentcontext.

ThiseditionoftheGLCFanalyzesglobaltrackedclimatefinanceinvestmentsfor

2019to2024.Bycombiningadvanceddatasciencecapabilitieswithextensivedata

sources,itproducesacomprehensivepictureofglobalflows:publicandprivate,domesticandinternational.

Box1:Climatefinancetrackingmethodology

ThisanalysisfollowsCPI'sapproachtoanddefinitionofclimatefinanceoutlinedintheGLCFMethodology2025.The2026methodologydocumentwillbereleasedlaterthisyear.Refinedovermorethanadecadeanddrawingonover30datasourcesandamultitudeofancillarydata,thismethodologyenablesuniquelycomprehensiveandgranulartrackingofglobalclimatefinance.CPI'sdataexpertsevaluate,validate,andharmonizenewdatasetsastheybecomeavailable,resultinginanecessarylagbetweenreal-worldactivityandreporteddata.

TheGLCFcapturesprimarycapitalflowsdirectedtowardlow-carbonandclimate-resilientdevelopment.OurscopefollowsCPI'sworkingdefinitionofclimatefinance,alignedwiththatoftheUNFCCCStandingCommitteeonFinance,whileapplyingconsistentinclusionandexclusioncriteriaacrosseditions.The

reportincludes:

·Investmentswithdirectorindirectmitigationoradaptationbenefits.

·Policysupportandcapacity-buildingexpendituresthatenableclimateaction.

·Totalprimarytransactionsandinvestmentcosts.

Toensurecomparabilityacrosseditions,avoidover-reporting,andfocusonlyonnewclimate-relatedinvestments,theGLCFexcludes:

·Secondarymarkettransactions(e.g.,resaleofassets,publictrading),whichdonotrepresentnewclimate-specificinvestments.

·Financialrisk-managementinstruments(e.g.,guarantees,insurance).Whilethesemaycatalyzeprivatefinance,theyarenotcountedsinceitispossiblethatnoactualdisbursementwilloccur.

TheGLCFcapturesallclimatefinance—domesticandinternational,publicandprivate—regardless

ofgeography.CPIcontinuouslyrefinesitsapproachandexpandscoverage,maintainingitsposition

asthemostcomprehensiveandreliablesourceofclimatefinancedata.Whiletheunderlyingdatais

improving,manyunknownsandgapsremain.SeeAnnexeslandIlforfurtherdetailsonmethodologyandcomplementarydata.CPIwillupdateitsclimatefinancedatabaselaterin2026toincorporateadditionaldatareleasedafterpublicationandpublishnewdatatotheGLCFDataDashboard.

GlobalLandscapeofClimateFinance2026Introduction

Earlysnapshotfor2025

Figure1.1:Trackedandestimatedclimatefinance,andgrowthrate

Preliminaryestimatesindicate

approximatelyUSD2.06trillionin

globalclimatefinancein2025.Despite

2.0

1.9

1.6

22%

16%

6%

30%

Annual

growthrate→

1.31.0

2%

2.1

Preliminaryestimates

Tracked

climatefinance2.5%

202020212022202320242025

2

1.5

0.5

0

USDtrillion

2.5

increasesinabsoluteterms,annual

growthisexpectedtohaveslowedfurther,fallingtoapproximately2.5%from2024to2025,farbelowtheinvestmentlevels

needed(Seep.13).3

Whilethisreportfocusesonflows

through2024,pages11-12alsopresentpreliminarydatafor2025.Combiningavailablereal-timedatawithrigorousestimationmethodsprovidesearly

insightsintorecentdevelopmentsinanevolvinglandscape

(seeAnnexl-p.73).

3BloombergNEFEnergyTransitionInvestmentTrends(BNEF,2026b)andIEAWorldEnergyInvestment

'CleanEnergy'(IEA,2025e)alsoreportfallingyear-

on-yeargrowthsince2021-22,despitedifferencesintrackingboundariesandmethodologies(seeAnnexl-p.70).

GlobalLandscapeofClimateFinance2026Introduction

Headwinds,progress,andemergingsignalsin2025

Climatefinancegrowthwashinderedbydisruptionsinafewhistorically

dominantmarketsin2025.Investmentsreportedlyfellinutility-scalesolar

PVandonshorewind—solutionsthataccountedfor27%offlowsin2024.

AsignificantdropinclimateinvestmentinChinadrovetheobserveddecrease,amiduncertaintyaroundnewrenewablepowerpricingreforms(PRC,2025;

Reuters,2025;BNEF,2026b).Overall,ayear-on-year9.5%dropinglobal

renewableenergyinvestmentwasreportedfor2025,drivenbythesetwo

technologies(BNEF,2026b).DespitetheChina-leddecline,solarPVwas

theworld'smostcost-competitivepowersourceintermsoflevelizedcostof

electricityin2025(WoodMackenzie,2025),andgrowthpersistedinemergingenergymarkets.InvestmentintheMiddleEastandAfricadefieddropsacrossmostotherregions,supportedbyhighirradiancelevelsandrobustnetcapacityfactors(WoodMackenzie,2025).

Batteryelectricvehicles(BEVs)madeupmostofthe2025climatefinanceincrease,alongsidegrowthinothermaturingtechnologies.Incentivesand

fallingpricessustainedBEVsalesinChinaandEurope,thetwolargestmarkets(IEA,2026b).Emergingmarketshavealsoregisteredstrongincreasesin

sales,observedinIndia,Indonesia,VietNam,andThailandinAsia,andBrazilandMexicoinLatinAmerica(BNEF,2025a).Batteryenergystoragewasthefastest-growingpowersectortechnologyin2025(IEA,2026a),andsmall-

scalesolarexpandedamidhighretailelectricitypricesandpolicysupport(IEA,2025d).Significantoffshorewindcapacityadditionsandexpenditurewere

reportedfor2025,reboundingafterarecentslowdown,especiallyinChina(RystadEnergy,2025).

Emergingsectorssawstronggrowthin2025,thoughtheystillmadeuponly

asmallshareofclimatefinanceInvestmentinindustrialenergyefficiencyandheatpumpsisexpectedtohaverisen(IEA,2025e),helpingtoreduceexposuretofossilfuelpriceandsupplyshocks.Recentconflictsexacerbatingthechallengesoffossilfueldependencearelikelytospurfurtherelectrificationandenergy

efficiencymeasuresthrough2026.

ClimatecontributionsfrombilateralDFlsareprojectedtohavefallenin2025,withanexpectedincreasefrommultilateralDFls.Climatecontributionsfrom

bilateralDFlsareprojectedtohavefallenin2025,withanexpectedincreasefrommultilateralDFls.Thisfollowshistorichighsinpublicclimatefinancein2023

and2024(OECD,2026b).Thepossibledivergencebetweenthesechannels

mayreflectnationalgovernments'continuedcontributionstomultilateralDFls

alongsidebilateralreductionsasdevelopmentbudgetsfacepressure.Preliminarydatashowsa23%dropintotalOfficialDevelopmentAssistance(ODA)to

USD174billionin2025,thesteepestannualdeclineonrecord(OECD,2026a).Together,theUS,Germany,France,theUK,andJapanaccountedfor96%of

thisdrop.Lookingforward,renewedeffortsoninternationalcooperationand

developmentfinancingmustmaintaingrowthininternationalpublicclimateflowsandalsocapitalizeonthestrongandvariedopportunitiesformobilizinggreater

privateinvestment.

12

GlobalLandscapeofClimateFinance2026Introduction

Climatefinanceisincreasing,butsoistheinvestmentgap

Figure1.2:Globaltrackedmitigationfinanceandestimatedclimateinvestmentneeds

Rangeof

USDtrillion

■Mitigationfinance

estimatedneeds

12

annualaverage2031-35

10

7.8

annualaverage2025-30

CAGR2019-2024

Ifthegrowthratesince2019sustains(15%CAGR),annualflows couldreachUSD6.2trnby2033,

4crossingthelowerboundofestimatedneeds.

2

1.8

0

2019202420302035

Needsinthe

averagescenario

9.6

annualaverage

2036-50

GrowthRate2023-24

Crossingthisboundarywilltake10yearslongerifthecurrentannualgrowth

ratesustains(7%YoY)

204020452050

Note:IncludesmitigationfinanceforEnergySystems,Transport,Buildings&Infrastructure,Industry,AFOLU.

Climatefinanceisincreasing,butnotatpacewiththescaleofthechallenge.

AnaverageofUSD7.8trillioninannualmitigationfinanceisneededfrom2025to2030toavoidtheworstimpactsofclimatechange,risingtoUSD9trillion

annuallyfrom2031to2035.Theyear2035isacriticalmilestoneascountries

seektoalignupdatednationallydeterminedcontributions(NDCs)withlong-terminvestmentandtransitionpathways.Doingsobecomesmoredemandingwith

eachyearofinsufficientinvestment.

Fallingtechnologycostssignalcontinuedmomentum,butgrowthintotal

investmentremainsamust.Astechnologycostsdrop,eachclimatedollarcan

translateintogreaterinstalledcleanenergycapacity.Morelow-carbonsolutionsarereachingcommercialviability,includingsolarPV,windturbines,hydroelectricpower,andBEVs,raisingthelikelihoodofsustainedprogress.However,atthe

CAGRofaround15%from2019to2024,annualinvestmentwouldonlymeetthelowestestimatedneedsby2033,anannualaverageofUSD6.2trillionfrom2031to2035.ThecurrentCAGRwouldthereforeresultinaclimatefinanceshortfallofatleastUSD16trillion.

Thissubstantialgapwouldseemitigationopportunitiesgountapped,drive

temperatureincreasesofabove1.5℃,andcauseseriouseconomicandsocial

consequences.Avoidingtemperatureovershootrequiresrapid,sustained

investmentgrowthfromallsources.4Everyfractionofadegreematters,andeverymillionmobilizedputstheworldonastronger,moreprosperoustrack.

4CP'sTop-downNeedsapproachcompilesandstandardizesinvestment-needsestimatesfromvarioussourcestoprovideacomprehensive,unifiedunderstandingofthefundinggaprequiredtolimitthe

globaltemperatureriseto1.5℃bytheendofthiscentury.Giventhevariationacrossscenariomodels,

assumptions,andsectoralcoverage,Figure1.2presents