Stronger policy environments spur advances, though progress is concentrated in a handful of countries and sectors 

27 October, London — Emerging markets and developing economies (EMDEs) are increasingly driving global climate investment, according to Climate Policy Initiative’s (CPI) new Global Landscape of Climate Finance 2025: EMDE Spotlight report. 

In 2023, climate finance across EMDEs exceeded USD 1 trillion. Domestic sources accounted for 80% of total flows. While this is still short of the estimated USD 4 trillion needed annually by 2030 for EMDEs, the report highlights how EMDEs are utilizing key levers—coherent policies, household spending, among others—to boost climate investment that spurs economic development, creates jobs, and supports other policy outcomes like expanding energy access and improving health outcomes. 

“Emerging economies are key players for global progress with an unprecedented opportunity for investment and development,” said Dr. Barbara Buchner, CPI’s Global Managing Director. “With COP30 in Brazil on the horizon, these economies are showing how domestic policy alignment and strategic international support can work together to achieve transformational change.” 

Key findings

• Climate finance across EMDEs exceeded USD 1 trillion in 2023, with China accounting for USD 685 billion (64%). 
• International climate finance made up less than 20% of EMDE flows (USD 209 billion in 2023). Public institutions were the largest source of international climate finance, but foreign private investment is growing, and will likely be a critical source of future growth as donor budgets tighten. 
• Private domestic capital plays an increasingly important role in EMDEs, with households comprising the largest share of private investment—now 25% of climate finance across all EMDEs—and also the largest share of any source of climate finance. 
• Mitigation finance attracted USD 285 billion in 2023, doubling since 2018 and accounting for 92% of tracked flows in 2023.  
• Adaptation finance reached USD 48 billion in 2023, but growing from a low base and remains well below annual needs through to 2030, and highly uneven across regions.  
• Clean energy drives EMDE investment: Falling technology costs and supportive policies for renewables, electric mobility, and energy efficiency are spurring mostly domestic—and some international—finance. In 2023, renewable energy accounted for 80% across all EMDEs, led by countries such as China, Brazil, Chile, Viet Nam, Morocco, and Uzbekistan. 

Download the report

Media contact:

Climate Policy Initiative   
Jana Stupperich  
Senior Communications Associate 
jana.stupperich@cpiglobal.org