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This report reflects on how climate finance has evolved from 2018 to 2022, exploring both mitigation and adaptation flows across different economies. The need to raise ambition for climate action is more urgent than ever underlines this report. 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.

Despite annual climate finance 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, and investments in new fossil fuel production and distribution reached USD 1 trillion that year. 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.