Full Title: Understanding the Climate Finance Gap: 2025 Update
Author(s): Jacob Spies, Andrés Melendez, and Roopa Venkatraman
Publisher(s): CREO
Publication Date: October 12, 2025
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Description (excerpt):
Climate finance has accelerated sharply, with capital flows surpassing $2 trillion for the first
time in 2024, nearly triple the level five years ago. However, experts believe that an
additional four-fold increase is required to achieve net zero targets in 2050. Fortunately,
there is no shortage of technologies ready to scale and about one-third of the emissions cuts
needed in the next five years can come from technologies that already outperform on cost,
representing a $135–$200 billion deployment opportunity and up to $10 trillion in potential
annual revenues.
Although climate fundraising declined by about 50% in 2024 — more than double the
broader market drop — investment activity rose 27%, indicating strong underlying demand.