Global Climate Finance Flows, finance project.#Finance #project

Climate Policy Initiative (CPI) produces the most comprehensive inventory of climate change investment available. We are committed to improving the understanding of climate finance flows at the global, national, and local levels.

This site features climate-relevant investment figures from 2012 through 2016 from CPI’s report, The Global Landscape of Climate Finance 2017.

All dollar amounts are in nominal USD billion unless otherwise stated.

Finance project

Global investment to address climate change reached a record high in 2015.

Total climate finance, in billions:

The record in 2015 was driven by a surge in renewable investments, particularly in China, the U.S., and Japan. The subsequent decrease in 2016 was due to a combination of falling technology costs and lower deployment in some countries.

Taking into account annual fluctuations, the average flows across 2015/2016, $410 billion, were 12% higher than during 2013/2014.

The private sector is doing more than ever, while the overall share of public investment remains steady

Increased private sector activity is a sign of maturing markets for wind and solar, which require less public support to drive greater private investment.

However, steady public investment continues to provide the foundation for private investment year after year.

Private sector investment grew to 68% of total climate finance in 2015 before dropping back to 63% in 2016

Project developers, which consistently drive the largest volume of private finance, increased their spending 61% from 2014 to 2015. This was likely a response from Chinese project developers to build before an important renewable energy revenue support policy was scheduled to decline.

Commercial finance institutions have also taken a larger role. The share of more traditional lenders in the climate financing mix signals a maturing technology market in some areas

The share of direct institutional investment in projects remains small but is growing rapidly – another positive signal of market maturity for some sectors.

On the public side, development finance institutions accounted for the majority of public flows, contributing 89% of the total public finance.

In anticipation of the Paris Agreement, multilateral development finance institutions committed to scale up climate finance, with targets ranging from 25 to 40% of their total business by 2020. As of early 2017, these institutions are collectively already more than 3/4 of the way towards those goals.

Over 2015–2016, 79% of finance was raised in the same country in which it was spent.

and Eastern Europe

and North Africa

There has been a steady upward trend of domestically raised investment, indicating the persistent importance of strong national policy and regulatory frameworks for climate-related projects.

Investments by region, 2015/2016 annual average

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