This report “Global Landscape of Climate Finance 2025” by Climate Policy Initiative concludes that geopolitical shifts, trade tensions, and economic instability are testing international climate action in 2025. While these dynamics put pressure on public budgets, climate investment remains crucial to achieving long-term sustainability and well-being for global populations. The benefits of scaling up climate investments far outweigh the costs: cleaner air, resilience to a changing climate and rising energy prices, food security, and clean technology innovation present opportunities for prosperity and economic growth for all.
Climate investment has continued to grow and diversify despite headwinds ranging from the pandemic to high inflation and energy security concerns. Private finance now constitutes over half of global mitigation investment, showing encouraging signs of technology maturity. Adaptation finance has a growing evidence and knowledge base and is expected to feature more prominently across sectors in public budget expenditures and private investment decisions.
2025 is proving to be a year of climate finance innovation, especially from public development banks, the private sector, and EMDEs. Sophisticated and innovative financial instruments are being piloted by both public and private actors to help mitigate the risks associated with climate solutions in emerging economies. Sustaining and scaling these solutions will be crucial to filling investment gaps. Public and private entities must collaborate ever more closely, targeting limited public resources to attract private investment.
Access the report here
