{"id":67865,"date":"2024-12-03T09:18:41","date_gmt":"2024-12-03T08:18:41","guid":{"rendered":"https:\/\/www.i4ce.org\/?post_type=projet&p=67865"},"modified":"2026-03-02T11:13:59","modified_gmt":"2026-03-02T10:13:59","slug":"climate-mitigation-adaptation-financing-needs-emerging-developing-economies-unpacking-global-estimates-supporting-effective-mobilisation","status":"publish","type":"projet","link":"https:\/\/www.i4ce.org\/en\/projet\/climate-mitigation-adaptation-financing-needs-emerging-developing-economies-unpacking-global-estimates-supporting-effective-mobilisation\/","title":{"rendered":"Climate mitigation and adaptation financing needs in emerging and developing economies: unpacking global estimates, supporting effective mobilisation"},"content":{"rendered":"

Context<\/b><\/span><\/h2>\n

\u200b<\/span><\/span>\u200b<\/span>Finance is in the spotlight in international climate discussions<\/strong>.\u00a0The difficult negotiations and half-satisfactory outcomes on the NCQG at COP29, followed by\u00a0the missed opportunity\u00a0to build consensus around concrete measures\u00a0to mobilise finance\u00a0outlined in the\u00a0<\/span>Baku-to-Bel\u00e9m roadmap<\/span><\/a>\u00a0at COP30, underscored just how critical finance is to climate action.\u00a0However, country-level financing\u00a0needs assessments are\u00a0nearly always\u00a0missing<\/strong> (<\/span>I4<\/span>CE<\/strong> 2024<\/span><\/a>,\u00a0<\/span>Chimowu, Hulme and Munro 2019<\/span><\/a>), while they should provide the factual basis of such discussions and actions.<\/span><\/span>\u00a0<\/span><\/p>\n

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\u200b<\/strong>Global financing needs estimates try to make up for this gap<\/strong>. However, due to the lack of base data to work with, they are forced to various assumptions. When combined with variations in the scope of instruments, the dimensions of climate, nature, and development actions considered, and other\u00a0methodological choices, this results in widely divergent estimates (See Figure below).<\/span><\/span>\u00a0<\/span><\/p>\n

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Figure. Sample estimates and uncertainty ranges of annual climate finance needs in EMDEs by 2030<\/span><\/span><\/span><\/strong><\/h3>\n

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\u200b<\/span>One key reference figure, serving as an anchor in international negotiations, is the estimate by the Independent High-Level Expert Group on Climate Finance (IHLEG).\u00a0Their\u00a0third\u00a0report estimates\u00a0that\u00a0approximately US$2.4 trillion\u00a0in investment are needed annually by 2030\u00a0in EMDEs, excluding China<\/strong>, to support five key areas of climate action: clean energy transition, adaptation and resilience, loss and damage, natural capital and just transition.<\/span><\/span>\u00a0<\/span><\/p>\n

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\u200b<\/strong>Such\u00a0estimates\u00a0offer valuable signals for raising awareness and structuring international negotiations, but\u00a0they often fall short of guiding concrete country-level action or supporting effective mobilisation strategies<\/strong>.\u00a0Several key limitations undermine their practical usefulness.<\/span><\/span><\/p>\n

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\u200b<\/span>Source<\/span><\/span>\u202f:<\/span>\u00a0<\/span><\/span>OECD 2024<\/span><\/span><\/a>, based on (Climate Capital Partners, 2022; CPI, 2023; ETC, 2023; IEA\/IFC, 2023; Songwe, Stern and Bhattacharya, 2022; McKinsey & Company, 2022; UNFCCC SCF, 2021; UNEP, 2023).<\/span><\/span><\/span>\u00a0<\/span><\/p>\n