Risk to Reward 2025

Private climate finance to EMDEs, by source and destination (2023) Private climate finance flows to EMDEs (2023)FIGURE 2 FIGURE 3$36 bn 19% $151 bn 81%EMDE private climate finance (domestic & international), by sourceInternational private climate finance to EMDEs, by destination Domestic private finance Internatiorial private financeCentral Asia & Eastern Europe East Asia & Pacific Latin America & Caribbean Middle East & North Africa South Asia Sub-Saharan Africa Transregional$9 bn $6 bn$13 bn $4 bn $2 bn$1 bn $1 bn $151bn domestic$36bn international$1 trillion per year is needed by 2030 from external sources, mostly privateMore is needed to close the gapInternational private finance reached $36 billion in 2023 but must grow 28-fold to reach $1 trillion per year by 2030 Two regions receive over 50% of private climate finance flows 52% debt 47% equityAlthough private debt and equity are almost at par, most of the equity figure is driven by household purchases of low-carbon technologies, rather than from financiers.More equity is needed $60bn Latin America & Caribbean$40bn Central Asia & Eastern Europe96% of funds are directed to mitigation (mostly clean energy & transport)Investors prioritize mitigation75% of climate investment is allocated to energyEnergy is the preferred sectorNotes: For the purposes of this report, East Asia includes Mongolia, Democratic People’s Republic of Korea and South East Asian EMDEs, but excludes China. Transregional refers to climate finance flows that span multiple regions or cannot be attributed to a single geographic area. These include investments in global funds, multinational programmes or financial instruments that operate across borders, serving several EMDE regions simultaneously. Transregional flows are tracked separately to reflect their cross-cutting nature and systemic impact. Source: Climate Policy Initiative (CPI), 2025.13 Source: Climate Policy Initiative (CPI), 2025.14 From Risk to Reward: Unlocking Private Capital for Climate and Growth 9