Climate Finance Outlook 2025
- ISETS Energy Finance Network; ECF30 Forum; Institute of Carbon Neutrality and Climate Finance
Introduction
- Climate Finance Outlook 2025 (the Outlook) draws on multi-source datasets such as the International Energy Agency (IEA), World Bank (WB), Organisation for Economic Co-operation and Development (OECD), Climate Policy Initiative (CPI), Climate Change Laws of the World (CCLW), and multilateral development banks (MDBs) to provide a quantitative assessment of global climate finance flows, market dynamics, and policy frameworks. It consolidates a comprehensive data architecture to illustrate the global transformation trends of public and private capital, supporting the achievement of climate goals. The evidence shows a marked acceleration in climate-related investment in recent years, led by clean energy, which now accounts for the largest share of incremental capital. MDBs’ commitments have risen, sustainable bond markets have continued to expand, and carbon pricing mechanisms have broadened—demonstrating growing momentum in global climate action. However, significant financing gaps persist, policy uncertainty has increased, and structural imbalances persist across regions and sectors in terms of access, costs, and capital allocation.