Discussion paper
This discussion paper examines why global climate finance continues to fall far short of what is needed. It explores the scale of climate financing needs in developing countries, the limitations of current climate finance definitions and tracking, and the structural barriers that prevent available funds from being directed towards effective climate action.
The paper situates climate finance within the wider global financial system, questioning reliance on market-based approaches, debt-driven solutions and existing international financial institutions. It proposes foundational principles for more just and effective climate financing and outlines areas for reform to help unlock long-term, risk-tolerant funding for mitigation, adaptation and loss and damage.