Global Landscape of Climate Finance 2025: Executive Summary (Climate Policy Initiative)

Summary

• Global climate finance flows hit an all-time high of USD 1.9 trillion in 2023, more than doubling in three years.p.1
• Climate finance grew by an average of 26% per year between 2021 and 2023, and at this pace the world could meet USD 6 trillion in annual climate investment by 2028.p.1
• Private climate finance surpassed USD 1 trillion for the first time in 2023, increasing 44% from 2022, and private actors contributed 66% of climate finance, up from 54% in 2018.p.2
• Public finance fell by 13% to USD 646 billion amid constrained domestic government budgets.p.2
• In 2023, China captured 35% of global flows (USD 659 billion).p.3
• Mitigation finance made up 94% of global climate flows in 2023, reaching USD 1.8 trillion, with most going to energy systems (47%) and transport (30%).p.3
• Adaptation finance flows were USD 65 billion in 2023, a 16% decrease since 2022.p.3

Key insights

1. Economic losses are expected to amount to 15% of global GDP by 2050 from 2°C of warming and 30% by 2100 from 3°C.p.1
2. The compound annual growth rate for private climate finance from 2018 to 2023 was approximately 30%, versus 18% for the public sector.p.2
3. Development finance institutions provided about 46% of public finance (USD 300 billion) and 16% of the global total in 2023.p.2
4. Flows from development finance institutions fell by 47% in 2023 compared to 2022.p.2
5. International flows to developing economies reached USD 196 billion, with USD 152 billion from public actors.p.3
6. Around 80% of climate finance flows were raised and spent domestically.p.3
7. Dual-benefit finance reached USD 58 billion in 2023, tripling from USD 18 billion in 2018.p.3
8. Concessional finance accounted for less than 10% (USD 686 billion) of climate finance from 2018 to 2023, while debt formed 61%.p.3
9. China's climate finance flows declined by 4% in 2023, largely due to a 52% drop in national DFI contributions.p.4