Global Climate Finance Increases to USD 391 Billion
Climate Policy Initiative’s Global Landscape of Climate Finance 2015 shows global investment in activities that reduce greenhouse gas emissions and climate vulnerability grew from USD 331 billion in 2013 to USD 391 billion in 2014, thanks to steady increases in public finance and a surge in private investment in renewable energy technologies.Of the finance captured by the Landscape 2015, USD 292 billion paid for renewable energy. With falling costs for some technologies, these investments are achieving more impact than ever before.
Adaptation finance reached USD 25 billion or 17% of all public climate finance in 2014. On par with last year’s results, this is a partial and uncertain estimate due to different accounting approaches and major data gaps for tracking private adaptation finance. Development finance institutions were the biggest single source of global climate finance, providing USD 131 billion or 33% of total climate finance flows. Project developers and corporate actors outside the energy sector were the second and third biggest sources with USD 92 billion (24%) and USD 58 billion (15%) respectively.
“Two weeks out from the international climate negotiations in Paris, our analysis demonstrates that countries around the world are investing to drive their own economic growth and development. Overwhelmingly, it is national self-interest that is driving climate action,” said Barbara Buchner, Senior Director of Climate Policy Initiative and lead author of the study. She added, “The numbers also show that while global investment in a cleaner more resilient economy is growing, so too is the investment gap between what is required for reducing emissions to within agreed limits and what is being delivered. Even greater effort and geographic spread is needed to deliver investments consistent with the 2°C global temperature goal.”
Climate Policy Initiative works to improve the most important energy and land use policies around the world, with a particular focus on finance. An independent analytical and advisory organization, CPI has offices and programs in Brazil, China, Europe, India, Indonesia, and the United States. CPI remains committed to improving the understanding and transparency of today’s climate finance landscape. By shedding light on the intersection between public policy, finance and private investment, it aims to help decision makers optimize the use of their resources.
