©G:HUB2023Thisbriefingisfreetouseandreproduceforyourownpublication,aslongastheyarenotforcommercialuse.Asthecopyrightholder,G:HUBdoesrequestdueacknowledgementandacopyofyourpublication.Pleasecontactauthorforcitationofthedataorfigures.Foronlinepublication,G:HUBrequestsdirectlinktotheoriginalresourceontheG:HUBwebsite.ThisbriefingonlyrepresentstheviewsofG:HUB.Pleasecontactusifthere’reanyquestionsorproblems.AcknowledgementsThisbriefingisproducedbyG:HUB.WewouldliketoacknowledgeNaturalResourcesDefenseCouncilBeijingRepresentativeOfficefortheirfundingsupportforthisbriefing.ThisbriefingispartoftheresearchonscalingupclimatefinancinginChina.TheleadauthorofthisbriefingisSHAOYuwei,ProgramOfficerofG:HUB.GUOHongyuandBAIYunwenprovidedadviceforthisbriefing.WewouldliketothankZHANGJieqing,WUQi,CHENGYuxinfromNRDCfortheirsupportandadvicefortheresearch.We'dalsoliketothankLIMinghui,CommuniationOfficer,fortheproductionanddesignofthebriefing.AboutG:HUBGreenovationHub(GHub)isanindependentenvironmentalthinktankwithaglobaloutlook,registeredwiththeBeijingMunicipalCivilAffairsBureau.GHubadvancesthepolicydevelopmentanddialoguesincutting-edgeareasofsustainabledevelopment,seeksinnovativesolutionstoqualitygrowth,climateresilienceandcarbonneutralityinChinaandbeyond,contributingtoanet-zeroandnature-positivefuture.-1-IntroductionProgresstowardsglobalsustainabledevelopmentandclimateactiontargetsisnotablylagging.TheSustainableDevelopmentGoalsReport2023indicatesthatonly15%ofthesegoalsareontrack,withsomeevenregressing1.Thefirstglobalstocktakerevealsthatcurrentglobalcollectiveclimateactionsfallshortofmeetingthelong-termtemperaturecontroltargetsintheParisAgreement.Furthermore,thecurrentemissiontrajectoriesdonotalignwiththeNationallyDeterminedContributions(NDCs)2.Globalclimatefinancicalflowsarehugelyinsufficienttomeettheclimatetargetsofsectorsandregions.Thisshortageunderminesefforts,especiallyindevelopingnations,toaddressclimatechangewiththenecessaryscaleandambition.Thepastdecadesawgrowingmomentum,wherepublicandprivateclimatefinancingalmostdoubledbetween2011and2020.Inthe2019/2020fiscalyear,theaverageannualclimatefinancingreached653billionUSD3.However,reachingclimateobjectiveswillrequireclimateinvestmenttoincreaseatleastseventimesbytheendofthisdecadeaswellasthealignmentofallotherfinancialflowswithParisAgreementobjectives4.Toreachglobalnet-zeroemissionsby2050,conservativeestimatessuggestanannualneedof4.5-5trillionUSD5.Althoughfundingforclimateadaptationhasincreasedannuallyoverthelastdecade,thereremainsawideninggapcomparedtoglobaladaptationcosts.BasedontheNDCsandtheNationalAdaptationStrategies(NAPs)of76developingcountries,yearlyadaptationcostsareestimatedat71billionUSD.Thisisexpectedtoriseto140billionUSD-300billionUSDby2030,reaching280billionUSDto500billionUSDby2050.Presently,adaptationcostsare5to10timestheglobaladaptationfinancialflows6.Itisimperativefornationstomobiliseclimatefinancingtobridgethismassivefundinggap.Sustainablefinanceorgreenfinanceframeworkshavebeenestablishedinmultipleregionsworldwidetoharnessfundingforclimateactions.Bolsteredbyenablingpoliciesandincentives,publicandprivatefinancialinstitutions,alongwithinstitutionalinvestors,serveapivotalroleincatalyzingclimate-friendlytransitionsacrossindustries.Over650entities,includingmultilateraldevelopmentbanks,nationaldevelopmentbanks,commercialbanks,insuran...