Continued growth, led by private finance in domestic markets, has now enabled financing to reach $2tr per annum.

Figures from the Climate Policy Initiative (CPI) show that flows have grown every year over the last half-decade, despite energy market volatility, sovereign debt pressure, geopolitical conflicts, and COVID-19.

Domestic private actors now account for 60 per cent of total mitigation finance, having driven around 70 per cent of net growth since 2019. As part of this, households invested $332bn (around 20 per cent of all domestic climate finance) in low-carbon solutions in 2024.

Clean energy investment grew by 17 per cent in 2024, accounting for around half of mitigation finance. Falling technology costs mean each dollar now buys more clean energy capacity: the cost of electricity fell by around 90 per cent for solar PV and 93 per cent for battery storage from 2010 to 2024.

However, international public climate finance is trending down. and coordinated efforts to shift public and blended finance from competing with private capital to creating pipelines and de-risking investment where commercial finance is not yet scaling with e required to accelerate progress to meet targets.

Moreover, modest adaptation growth early this decade has now flattened, with overall tracked adaptation investment plateauing at $64bn in 2024. Stronger investment in adaptation and resilience is essential to protect development gains, yet financing remains concentrated in a narrow set of sectors and well below required levels.

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