Global climate finance has crossed $2 trillion, but growth is slowing

Global climate finance has crossed $2 trillion annually. However, its growth rate has slowed sharply, from 30% in 2021 to an estimated 2-3% in 2025.

Two things are true at once. Climate finance has never been larger, and it is no longer accelerating. A market that grows by a few percent a year will not close the investment gap that most transition scenarios assume, and the slowdown has arrived at the point where hard-to-abate sectors need the most capital.

The missing growth is unlikely to come from public budgets. It has to come from corporate balance sheets that already buy from the suppliers who need to invest. Turning Scope 3 spend into a financeable demand signal is the mechanism Carbon3 builds for, and it is one of the few sources of new capital that does not depend on another policy cycle.