Finance for emerging markets and developing economies (EMDEs) is key to combating the global climate crisis. These 157 countries represent almost 90% of the global population and over 40% of the global economy. They are undergoing rapid urbanization, industrial growth, and rising energy needs, while experiencing greater physical climate impacts. They are also increasingly stepping up their leadership in shaping the agenda for global climate action.

The success of their climate transitions will determine the course of global emissions for decades to come. At the same time, EMDEs are most vulnerable to the negative impacts of climate change (EIB 2025). While their financing needs are large, addressing the climate crisis provides unprecedented opportunities for investment and development.

Across All EMDEs, climate finance surpassed USD 1 trillion in 2023, of which 80% was mobilized domestically.

This drives economic diversification, job creation, energy access and independence, and better health outcomes, while also building overall fiscal resilience. Adaptation and resilience are becoming integral parts of national development strategies. Strong domestic planning and policies, along with well-targeted international finance, can help countries tap into this sustainable development potential.

Explore all the insights in our full report.

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