Addressing climate change can help to support the economic development and long-term growth in emerging markets and developing economies (EMDEs). EMDEs require trillions of dollars to address climate change, yet only a fraction of this funding is currently mobilized.
Developing nations face significant barriers to accessing climate finance, including inadequate technology, insufficient data, and structural challenges such as fragmented project pipelines, regulatory uncertainty, and weak financial markets. These obstacles deter private investment and slow progress.
The consequences of insufficient climate finance are far-reaching: EMDEs continue to struggle with weather-related disasters, poor air quality, food insecurity, and limited access to clean water and energy. These challenges contribute to weak rural development, poverty, poor health, inequality, and declining productivity — further hindering economic growth.
