Total climate finance to EMDEs has grown fast – but not fast enough FIGURE 1 2021 2022 2023 Public climate ﬁnance (domestic) Public climate ﬁnance (international) Private climate ﬁnance (domestic) Private climate ﬁnance (international)$70.5 bn$64 bn$16.6 bn$159.3 bn $93.6 bn$77.9 bn$17.6 bn$202.9 bn $32.4 bn$111.6 bn$150.7 bn$36.1 bn$332.0 bn $1.17 bn* $186.8 bn Private climate ﬁnance Public climate ﬁnance$95.5 bn $80.6 bn $13.8 bn $8.2 bn Note: *The Climate Policy Initiative reports a total of $332 billion in climate finance to EMDEs in 2023, which includes $1.17 billion categorized as “unknown international” finance. This is not included in the total of $186.8 bn of private climate finance for 2023. Source: Climate Policy Initiative (CPI), 2025.8 The cost of delay is rising rapidly. Without decisive action, lower - and lower -middle income countries are expected to bear the brunt of climate impacts, with ~3.6 times greater GDP losses on average than developed countries under certain scenarios, according to a study of 135 countries.9 These impacts threaten not only development in these regions but also global financial stability, trade flows and supply chains. Addressing this imbalance requires a fundamental rethink of how climate finance is mobilized across mitigation and adaptation, debt and equity, and international and domestic sources. Multilateral funds and public instruments have made important contributions, but remain underfunded and often fail to deliver timely, scalable investments, particularly in the most climate-vulnerable regions. As a result, many bankable, high-impact projects in EMDEs remain stalled or underdeveloped.Emerging markets and developing economies (EMDEs) BOX 1 EMDEs refer to a broad group of countries across Latin America, Sub-Saharan Africa, South Asia, East/South East Asia and parts of Eastern Europe. For the purposes of this report, EMDEs exclude China due to its distinct investment profile and Least Developed Countries (LDCs) due to their unique financing needs and constraints. These economies collectively represent over two- thirds of the global population, contribute to more than one-third of global GDP and are projected to account for 74% of global energy consumption by 2050. Despite their relatively modest historical climate footprint, EMDEs face disproportionate exposure to climate risks and require substantial financing to stay on a Paris-aligned path. The key to scaling climate investment lies in partnering with committed players, those who believe in the long-term story, align with ESG values, and are willing to take calculated risks to unlock real impact. Vaishali Nigam Sinha, Co-Founder, ReNew From Risk to Reward: Unlocking Private Capital for Climate and Growth 7

Risk to Reward 2025