Global Landscape of Climate Finance 2024: Insights for COP29 (Climate Policy Initiative)

Summary

• Annual climate finance more than doubled between 2018 and 2022, from USD 674 billion to USD 1.46 trillion.p.5
• A further fivefold increase is required to reach the USD 7.4 trillion needed on average each year through 2030 under the 1.5°C scenario.p.5
• Mitigation finance grew at a compound annual growth rate (CAGR) of 20% between 2018 and 2022 to reach USD 1.3 trillion.p.6
• Adaptation finance more than doubled to USD 76 billion in 2022, with the public sector providing 92%.p.7
• Advanced economies accounted for 45% of climate finance from 2018 to 2022, China for 36%, EMDEs (ex. LDCs and China) for 16% and LDCs for only 3%.p.16
• Early estimates indicate climate finance grew to USD 1.5-1.6 trillion in 2023.p.16
• Fossil fuel investment is estimated to reach USD 1.12 trillion in 2024.p.9

Key insights

1. Current climate finance represents only 1% of global GDP.p.5
2. Consumer fossil fuel subsidies alone amounted to USD 1.4 trillion in 2022.p.5
3. Private finance accounted for 54% of the total funding for mitigation activities.p.17
4. 57% of mitigation investments were provided through market-rate loans, followed by equity instruments (32%).p.17
5. Industry flows represented only 1.4% of total mitigation finance from 2018 to 2022.p.19
6. Dual benefits finance grew at a CAGR of 59%, compared with 20% for mitigation and 21% for adaptation.p.23
7. Climate finance to EMDEs increased from USD 327 billion to USD 862 billion between 2018 and 2022.p.25
8. China's share of global climate finance rose from 27% in 2018 to 42% in 2022.p.26