Global landscape of climate finance 2024

The Global Landscape of Climate Finance 2024 reflects on how climate finance has evolved from 2018 to 2022, exploring both mitigation and adaptation flows across different economies. It also provides a preview of what to expect from the data for 2023, which will be presented in full in next year’s report.

WHERE ARE WE NOW?
The need to raise ambition for climate action is more urgent than ever. The nine years from 2015 to 2023, inclusive, were the warmest on record, and extreme weather events have increased fivefold in the past 50 years (WMO 2021, 2022, and 2023a). Despite annual climate f inance having more than doubled between 2018 and 2022 (from USD 674 billion to USD 1.46 trillion), a further fivefold increase is required to reach the USD 7.4 trillion needed on average each year through 2030 under the 1.5°C scenario. By comparison, consumer fossil fuel subsidies alone amounted to USD 1.4 trillion in 2022 (IISD and OECD, 2023), and investments in new fossil fuel production and distribution reached USD 1 trillion that year (IEA, 2024a). Current climate finance represents only 1% of global GDP, while some estimates for emerging markets and developing economies (EMDEs) suggest that specific countries might have to allocate around 6.5% of their GDP by 2030 (IHLEG, 2022).

THE COST OF INACTION
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 (CPI, 2024a). While climate finance needs will likely ease beyond 2050, economic damages under a BAU scenario will continue to exponentially increase into the future. While we cannot put a true price on elements such as human suffering or loss of nature, conceptualizing climate finance through this lens of the cost of inaction and providing more granular estimates to this end could spur the investment needed to avoid future climate hazards and losses. In addition, this report includes a geographic regional analysis of the trends within each economic grouping. This allows for a more detailed view of the varying climate finance needs and challenges across different contexts.

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