Climate finance is vital to combat the climate crisis. A new study shows that annual climate finance flows surpassed USD 1 trillion for the first time in 2021, six years after the Paris Agreement was adopted in 2015. However, flows must increase by at least five-fold annually by 2030 to avoid the worst impacts of climate change. Climate Policy Initiative (CPI)’s Global Landscape of Climate Finance 2023, the most comprehensive overview of global climate-related primary investment, shows that average annual flows in 2021/2022 reached almost USD 1.3 trillion, doubling compared to 2019/2020 levels. Some of this (about 28% of the increase) is due to better data availability and other methodological improvements, a positive sign that more and higher quality climate finance data is being compiled, tagged, and made publicly available.
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