Mind the gap: An estimate of climate finance needs by developing countries to fund their NDC commitments

Year Published

2021

Contributing Organizations

Climate Capital Partners

Aviva Investors

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Nationally Determined Contributions (NDCs)

Topic 2

Climate Policy & Policy Engagement

Topic 3

National Adaptation Plans (NAPs)

Target Audience

Governments & Policymakers

MDBs/DFIs

Education Providers / Think Tanks / NGOs

Relevant Geography

Global

Resource Description

This report analyzes critical gaps in the global investment chain that hinder alignment with the Paris Agreement. It outlines five systemic barriers—from data to policy—and provides recommendations to realign institutional capital flows with net-zero goals, emphasizing the role of global financial governance.

Why This Matters

The global financial system is not yet aligned with 1.5°C pathways. Without fixing structural gaps in mandates, data, and governance, institutional capital cannot scale fast enough to support the transition. This report shows how reforms across the investment chain can unlock finance for a just and rapid climate transition.

Key Insights

Five major gaps are identified: net-zero commitments, data, mandates, incentives, and governance
Lack of coherent rules and accountability slows transition-aligned investing
Recommends action across regulators, standard setters, asset owners, and rating agencies
Highlights need for international collaboration, particularly via the UNFCCC and G20
Calls for financial system reform to close the investment gap in emerging markets

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