Spotlight on COP29: Scaling up private climate finance in developing countries

This briefing paper has also been published individually as a webpage: Spotlight on COP29: Scaling up private climate finance in developing countries

Authors: Dr Ivana Popovic
Reviewers: Mr Michael Wilkins

Media enquiries: grantham.media@imperial.ac.uk
Policy enquiries: c.hewitt@imperial.ac.uk

COP29 – the next of the UN’s annual climate conferences, soon to take place in Azerbaijan – has been labelled the “finance COP”, given its focus on bridging the gap between current financial flows and the investments needed to achieve global climate goals. Climate finance can take many forms, including grants, loans and investments in developed and developing countries, which can come from the public or private sector.

This briefing paper examines specifically how to scale up private finance in developing countries to close the climate finance gap. 

Key points 

• Scaling up climate finance for developing countries will be at the forefront of discussions at the next annual climate talks, COP29.
• Most investments in climate solutions are concentrated in developed countries, with only a small proportion reaching least developed and developing countries.  
• While investments in climate mitigation and adaptation are growing, a significant gap remains between current finance and what is needed to meet Paris Agreement goals.
• Mobilising private finance, alongside scaling up public finance, is essential to closing this funding gap and ensuring that finance reaches those most in need.
• Boosting private investments in developing countries requires: a coordinated effort between public and private sectors; supportive policies; diverse financial instruments; and stronger engagement from international financial institutions.