Emerging markets and developing economies will need an additional $215bn in equity each year to meet investment targets aligned with net-zero objectives, according to research by the Climate Policy Initiative and the Glasgow Financial Alliance for Net Zero. The research, supported by Allied Climate Partners and Three Cairns Group with analysis from consultancy Wood Mackenzie, indicates that annual equity investment is likely to reach only $160bn by 2035, well below the $375bn needed. The report highlights the critical yet frequently overlooked role of equity in capital formation, suggesting that catalytic equity could mobilise private investment and potentially unlock up to $30 for every dollar invested.

Global investment in the energy transition reached $2.4trn in 2024, up 20% from average annual levels of 2022/23, with $807bn of this flowing into renewables, according to a report from the International Renewable Energy Agency and the Climate Policy Initiative. The Global Landscape of Energy Transition Finance 2025 report showed, however, that the tempo of growth in renewables investment slowed to 7.3% in the period. The bulk of funding remains concentrated in advanced economies, with developing nations largely dependent on external finance. The report calls for an increase in public and impact-driven finance.

Agreements concluded at the COP30 climate summit in Brazil to direct more public funding to climate adaptation could boost the sustainable finance market in the short term, according to S&P Global. However, it says regional fragmentation remains an issue and there is no global consensus on the energy and economic transition required to achieve the Paris Agreement goals. New financing structures are likely to appear to facilitate investment in developing countries but they may raise questions about credit quality.

The Sustainable Markets Initiative, a coalition of CEOs founded by King Charles III, has forecast that the shift to a sustainable global economy could become one of the most significant growth opportunities of the century. At a London roundtable in December, the Initiative's CEO, Jennifer Jordan-Saifi, said there had been significant progress, with trillions of dollars in private sector commitments to developing nations to facilitate the transition. At the same event, Asian Development Bank president Masato Kanda joined leaders of other multilateral banks and global financial institutions in exploring strategies to expand private financing for sustainable economic growth. The ADB took over as chair of the Heads of Multilateral Development Banks Group in December.

A large majority – 86% – of institutional investors in North America, Europe and the Asia-Pacific region surveyed by Morgan Stanley expect to increase their exposure to sustainable investments over the next two years. The lion's share of the 950 asset managers and investors polled say sustainable investment capabilities are key drivers of any decision to award investment mandates. North American asset owners are most likely to plan increased allocations to sustainability-focused investments, with 90% expecting to do so.

A year-long campaign led by the EU and South Africa has secured €15.5bn to accelerate renewable energy development across Africa. More than €15.1bn will come from the EU, with member states, development banks and private investors making up the difference. The initiative, which officials said demonstrates Europe's commitment to supporting Africa's clean energy transition, is expected to deliver 26.8 GW of new renewable capacity and extend electricity access to 17.5 million households. Of the €10bn pledged by Team Europe, €3.1bn had been announced earlier in 2025, while €7bn was confirmed at the November 21 final pledging event in Johannesburg.

Deutsche Bank intends to provide €900bn in sustainable and transition finance by the end of 2030 under its first transition finance framework. The German banking group also plans to facilitate at least 300 nature-related transactions by the end of 2027. The €900bn target includes the €440bn of sustainable finance and ESG investment already made by the bank between January 2020 and the end of September this year.

France's Crédit Agricole banking group has set targets of providing €240bn in transition financing and generating €1bn in sustainable finance revenue by 2028. It is also aiming for a 90:10 green-to-brown financing ratio, allocating €9 to the financing of low-carbon energy for every euro allocated to fossil fuel businesses. The bank has also reaffirmed its sector-specific decarbonisation pathways for the oil and gas, automobile, aviation, steel, cement, maritime transport and commercial real estate industries.

London-based private equity firm Just Climate and the Green Climate Fund have entered into a memorandum of understanding to work in concert to mobilise private institutional capital for climate-related investments across developing countries and emerging markets. The agreement, reached in the course of COP30 talks in Brazil, seeks to accelerate funding for climate solutions by strengthening collaboration between the public and private sectors, according to both organisations. Just Climate has raised $375m for its Natural Climate Solutions Strategy in several fundraising rounds since its launch in September 2023. The fund has also made its third investment in Indian agriculture technology platform AgroStar, which helps smallholder farmers adopt climate-resilient practices and products.

FinTech Global has released its fourth annual ESGFinTech100, which recognises technology companies driving environmental, social and governance objectives within the financial sector. Chosen from more than 600 applicants, the list features firms offering solutions for ESG risk management, compliance and reporting. Among these are: AscentAI, which delivers AI-driven automation to enable companies to cope with global regulatory content; Feedzai, an AI-native identity-centric fraud and financial crime prevention platform; and Corlytics, a regtech company that helps financial institutions manage regulatory compliance.

The European Commission has proposed reforms to the Sustainable Finance Disclosure Regulation designed to offer clearer definitions of impact investments. The changes will see the introduction of new, clearly delineated fund categories – Sustainable, Transition and ESG Basics – to replace existing Article 8 and 9 labels. The reforms stem from a 2023 review of the framework that found that investors were finding it difficult to compare the environmental or social characteristics of financial products. The European impact investing community welcomed the plans, although some called for more refinement.

The UK government has created an Office for Impact Economy within the Cabinet Office to ease collaboration with impact investors, philanthropists and purpose-driven businesses. The office will coordinate cross-government strategy, build capacity and foster partnerships designed to increase social impact. The initiative is designed to unlock impact capital by working in conjunction with the Office for Investment and other relevant government departments.

The UK government has updated its green financing framework to allow proceeds from green gilts and savings bonds to be used for nuclear energy projects. This change, effective from November, places nuclear energy alongside renewables as eligible for green spending and marks a departure from the approach of many global lenders, which have typically excluded nuclear due to concerns over waste and costs. The decision comes after the World Bank lifted its ban on nuclear financing and mirrors a broader reconsideration of the role of nuclear power in achieving climate and energy security goals.

A parliamentary committee has warned the UK could jeopardise progress made on global energy access if it fails to provide consistent funding for community-led initiatives. The International Development Committee report notes that UK aid has played a significant role in expanding energy access worldwide, and that more than 600 million people still lack electricity. The committee urged the government to commit to multi-year funding and establish clearer definitions of clean energy in its aid strategy. The report also recommends support to scale up local projects and encourage innovation in lower-income countries.