Global Climate Finance Nears $1.4 Trillion, Driven by Clean Energy and EV Investments

According to the Global Landscape of Climate Finance Report 2023, global climate finance flows surged to nearly USD 1.3 trillion in 2022—almost doubling compared to the previous year. Annual Climate Finance Flow in 2021-22

Fact Sheet: Despite this growth, private sector contributions remain lower than funding from state-owned sources. A significant portion of this funding—USD 1.29 trillion—was directed toward mitigation projects, reflecting the global focus on reducing emissions and transitioning to cleaner energy. Among sectors, energy received the highest investment, with USD 564.9 billion allocated, primarily to renewable energy projects from both public and private sources. The transport sector ranked second, with USD 409.8 billion in investments, driven largely by the global shift toward electric vehicles (EVs). Infrastructure followed in third place, attracting USD 255.3 billion, underscoring the need for climate-resilient urban development.