By 2025, developing countries are estimated to need around $1 trillion annually for climate investments, rising to roughly $2.4 trillion each year between 2026 and 2030. To close this investment and financing gap, they will need to harness a range of financial sources across public, private, domestic and international finance. Although public finance can only contribute a share of these extensive needs, increased involvement of international providers is key.
This report presents aggregate trends of annual climate finance provided and mobilized by developed countries for developing countries for the period 2013-2021. It includes breakdowns by climate theme, sector, financial instrument and recipient country grouping for the period 2016-2021. It also provides key recommendations for international providers to increase financing towards adaptation and more effectively mobilize private finance for climate action, which are both important policy priorities and current bottlenecks.
The recommendations in the report draw from two OECD publications on scaling up private climate finance and adaptation finance.