Why in the News?

According to a new report, global climate finance is on the rise, yet it is not increasing at a scale and pace sufficient to address the climate crisis effectively.

About Global Landscape of Climate Finance 2023:

• The Global Landscape of Climate Finance is an annual report published by the Climate Policy Initiative (CPI).
• It provides the most comprehensive overview of global climate-related primary investment, covering both public and private finance.
• The report tracks climate finance flows across a range of sectors, including renewable energy, energy efficiency, transport, climate adaptation, and mitigation.
• This report concludes by calling for governments and investors to increase their support for climate finance, particularly for adaptation finance.
• It also recommends that more data be collected on climate finance flows to better understand where the gaps are and how to address them.
• It is an important tool for tracking global progress on climate finance and identifying areas where further investment is needed.
• It is an essential resource for policymakers, investors, and other stakeholders who are working to finance the transition to a low-carbon and climate-resilient economy.
• Key findings from the 2023 edition of the Global Landscape of Climate Finance report:
• Global climate finance reached an estimated USD 1.3 trillion on an annual average in 2021/2022, up from USD 653 billion in 2019/2020.
• The majority of climate finance is still directed towards mitigation activities, such as renewable energy and energy efficiency.
• There was a significant increase in climate finance for adaptation activities in 2021/2022.
• The growth in global climate finance was concentrated in a handful of geographies, with China, the US, Europe, Brazil, Japan, and India receiving 90% of increased funds.
• Private finance accounted for 60% of global climate finance in 2021/2022, up from 52% in 2019/2020.