WEBVTT

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- There's been a lot of noise
in the headlines about the

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market for climate finance,

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and yet what our analysis shows
is this market is continuing

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to grow at pace.

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By the end of 2025,

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there was over 700 billion
assets under management across

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both private and publicly listed funds.

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And that's driven by investor
conviction in the rate at

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which technologies are becoming

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increasingly economically viable.

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Cost curves are coming down at paces

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that were unimagined before.

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It's also driven by the
increasing business case. At BCG,

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we saw that 80% of companies

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that deploy decarbonization
technology see a positive return

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on investment. But there's a catch.

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The majority of that money
is going into technologies

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that are already mature,

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and while there's a positive side,

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those technologies can
account for 55% of emissions.

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There's still a lot more technologies

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now that we need to do.

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And the other catch is

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that money is predominantly
flowing in developed markets.

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So this tees up three key
questions for us to grapple with

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as we move forward on climate finance.

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The first is how. How
do we grow the financing

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for technologies that are
not yet cost competitive,

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but are essential to
the energy transition?

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The second is what. How do
we move beyond mitigation

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and into the area of adaptation

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and nature-based solutions, which again,

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require more nuanced and

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and structured approaches to financing?

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And finally is where. Emerging markets

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and developed economies pose
tremendous opportunities

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to investors, and yet there
are additional complexities

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that need to be solved for
in order for the billions

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and trillions of financing to flow.