Raising ambition and accelerating delivery of climate finance
The report updates the IHLEG's previous estimates of investment requirements for climate action and sets out the action agenda to deliver the necessary finance for investment in emerging markets and developing countries (EMDCs) other than China.
Key findings
- Investments in all areas of climate action must increase across all economies: US$6.5 trillion is needed on average per year by 2030 to meet climate targets in advanced economies, China, and EMDCs other than China.
- The largest increase in investment is required in EMDCs other than China: these regions currently have low investment levels, significant development needs, and are projected to contribute over 50% of global emissions by 2030.
- Investment needs are most clearly defined in the energy transition sector: while other areas have more uncertainty, sufficient data exists to provide directional estimates that can guide financing pathways across regions.
- Any shortfall in investment before 2030 will place added pressure on the years that follow, creating a steeper and potentially more costly path to climate stability. The less the world achieves now, the more we will need to invest later.
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