Clear data on climate finance flows at global and national levels is critical to maintaining the momentum of the Paris Agreement. Otherwise, it is difficult to identify gaps, measure progress, craft effective policies, and optimize the deployment of public and private resources to make finance consistent with climate goals.
The Global Landscape of Climate Finance 2021 report provides the most comprehensive overview of the sources and financial instruments driving investment and how much climate finance is flowing globally and to which sectors.
Key findings from the report include:
- Global climate finance flows reached $632 billion in 2019/2020, but with tepid growth rate.
- Current investment levels are nowhere near enough to limit global warming to 1.5 °C.
- Achieving net zero will require all public and private actors to align their finance with Paris goals.
- A majority of climate finance went to mitigation, but adaptation finance is gaining momentum.
- Data gaps and methodological issues limit the understanding of progress and impact.