According to the latest report, Global Landscape of Climate Finance 2024: Insights for COP29, global investment in combating and adapting to climate change reached nearly $1.5 trillion. This amount shows that climate finance has doubled between 2018 and 2022.
However, the report notes that this volume must increase fivefold by 2030 to meet the Paris Agreement’s 2015 target of limiting global warming to 1.5 degrees Celsius.
The report has been published by the Climate Policy Initiative (CPI). CPI, an analysis and advisory organization, is a trusted global source for finance and policy.
CPI data shows that current climate finance represents only 1% of global GDP, which is far below the required amount.
The report asserts that climate investment must scale up across all fronts—domestic, international, and private sectors—to meet the world’s climate goals.
The report provides financial insights for this year’s UNFCCC Conference of the Parties (COP29), the largest annual climate meeting of the world’s nations.
“COP29 is an opportunity to establish clear, collaborative commitments to finance the transformation needed for a sustainable future.”
Says Barbara Buchner, CPI’s Global Managing Director, in a press release.
COP29 is being held in Baku, Azerbaijan, from November 11 to 22. Among the many agenda items is the establishment of a new climate finance target from 2025 onward under the New Collective Quantified Goal (NCQG).
According to CPI’s Global Landscape report, yearly climate finance rose from $674 billion in 2018 to $1.459 trillion in 2022. The report calls for a fivefold increase to meet the required annual finance of $7.4 trillion by 2030 for combating and adapting to climate change.
The world also needs to massively curb greenhouse gas emissions and transition away from fossil fuels for energy production. According to CPI statistics, investment in fossil fuel production and distribution alone reached $1 trillion in 2022.
“The projected economic losses that can be avoided by 2100 by realizing a 1.5°C warming scenario are estimated to be five times greater than the climate finance needed by 2050 to achieve it.”
Global Landscape of Climate Finance 2024 – CPI
The report points out that climate change mitigation investment, remaining slow outside of the energy, buildings, and transport sectors, reached $1.3 trillion in 2022. Meanwhile, climate change adaptation finance continued to lag, reaching $76 billion in 2022, though it more than doubled between 2018 and 2022.
CPI calls for stricter regulations and mandates from advanced economies to achieve the goal of limiting global temperature increase to 1.5°C above pre-industrial levels.
