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Global Landscape of Climate Finance 2023

The “Global Landscape of Climate Finance 2023” report provides a comprehensive overview of the financial flows dedicated to climate-related activities worldwide. Key highlights from the report include:

  1. Significant Increase in Climate Finance:
    • In 2021/2022, average annual climate finance flows reached nearly USD 1.3 trillion, almost doubling from the levels recorded in 2019/2020.
    • This increase is largely attributed to a substantial rise in mitigation finance, which surged by USD 439 billion compared to 2019/2020.
  2. Role of Methodological Improvements:
    • Methodological enhancements and the inclusion of new data sources have contributed significantly to the growth observed in 2021/2022.
    • These improvements added an estimated USD 173 billion each year to the tracked flows, which means that without them, the annual climate finance flows in 2021/2022 would have been just below USD 1.1 trillion.
  3. Breakdown of Finance Sources and Uses:
    • The report categorizes climate finance into mitigation and adaptation finance, with the former seeing a more pronounced increase.
    • It also provides insights into the sources of climate finance, including public and private sectors, and the various financial instruments used, such as grants, loans, and equity investments.
  4. Regional Distribution:
    • The geographical distribution of climate finance reveals where the funds are being allocated, highlighting regions that are receiving the most support for climate-related projects.
  5. Future Projections and Recommendations:
    • The report includes projections for future climate finance flows and offers recommendations for enhancing the effectiveness and efficiency of climate finance.
    • It stresses the importance of continued methodological advancements and the need for increased transparency and accountability in climate finance tracking.

The “Global Landscape of Climate Finance 2023” serves as a crucial tool for policymakers, investors, and stakeholders in understanding the current state and trends of climate finance, helping to inform decisions and strategies for addressing climate change globally

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