The Global Landscape of Climate Finance 2013, a new study by the Climate Policy Initiative (CPI), indicates that global climate finance flows plateaued at USD 359 billion in 2012. According to the authors, this level is “far below even the most conservative estimates of investment needs.” Key findings include:
The central role of the public sector in facilitating private investment. While private investors provided the lion’s share with 62% of total climate finance, public sources’ 38% played a critical role in enabling this private investment through incentives, low-cost loans, risk coverage mechanisms, direct project investment, and technical support.
76% of all spending was domestic, originating in the country in which it was used. Of the remaining USD 84 billion that flowed between countries, a significant amount was private money between developed countries while public sector money made up the vast majority of developed to developing country flows. These figures illuminate private investors preference for more familiar investment destinations that are perceived to be less risky, highlighting the importance of well-articulated and stable enabling environments.
The report breaks down climate finance flows by geographical region, and by activity.
Lead author Barbara Buchner participated in the Asia LEDS Partnership Workshop on Financing Green Growth in Manila, Philippines in April, 2013 where she shared some of the preliminary results of the CPI research.