By: Mike Hayes, Global Climate & Renewables Leader, KPMG International
As global leaders gather in Davos for the World Economic Forum Annual Meeting, the spotlight will undoubtedly fall on the critical need to mobilize private capital for climate-driven growth. 2025 has been one of the hottest years on record, underscoring the urgency of addressing climate change, particularly in emerging markets and developing economies (EMDEs) which are disproportionately affected.
The discussions at COP30 in Belém, Brazil, set a clear precedent, with the Mutirão decision outlining a two-year plan to mobilize public and private finance for EMDEs. This commitment aims to secure USD 1.3 trillion per year by 2035, streamlining access to climate funds and strengthening local participation. Furthermore, there was a notable shift in the investment community demonstrating a willingness to finance adaptation, including the resolution to at least triple adaptation finance by 2035.
Despite growing recognition of the need for climate finance, private investment in EMDEs remains insufficient. In 2023, only USD 36 billion in private climate finance reached these countries. An estimated $1 trillion in external finance, most of which will need to come from private sources, is needed annually by 2030. We therefore need to see a 28-fold increase in private finance by 2030 to meet the scale and urgency of the global climate challenge. The capital exists, with the world’s 100 largest asset owners managing over US$26.3 trillion, but unlocking it requires bold partnerships and targeted reforms. KPMG, in collaboration with the World Economic Forum, has consistently highlighted these trends and opportunities, as detailed in our report “From Risk To Reward: Unlocking Private Capital for Climate and Growth.”
KPMG is actively advancing climate finance by helping to shape regulatory frameworks, strengthen local capital markets, and helping our clients to de-risk investments. The transition to a low-carbon economy requires mobilizing private capital at scale. KPMG’s view is that three priorities can kickstart this process: improving access to bankable project pipelines, implementing policy and regulatory reform, and ensuring data transparency and quality. These interventions are crucial for building investor confidence and attracting the necessary private capital to achieve a resilient and sustainable future. As global business leaders, our role is to provide the expertise, analysis, and strategic guidance needed to unlock investment opportunities and bridge the climate finance gap. This involves fostering collaboration between governments, businesses, and innovators to shape effective policy, create demand signals for emerging technologies, and invest in disruptive climate solutions. The participation of every stakeholder across the capital stack is crucial to attract private investment for climate initiatives.
The World Economic Forum in Davos provides a crucial platform to galvanize action on climate finance. With the planet facing unprecedented environmental challenges, especially in EMDEs, home to more than two-thirds of the world’s population and accounting for eighty percent of global energy demand growth, the imperative to unlock private capital for climate-driven growth is more urgent than ever. The theme for Davos 2026, “A Spirit of Dialogue,” underscores the necessity of collaboration across governments, businesses, and civil society. Only through shared frameworks, unified solutions, and inclusive partnerships can we bridge the significant climate finance gap and translate ambition into tangible progress. This collective effort is vital not only for safeguarding the planet but also for fostering sustainable economic development and a resilient future for all.
