The Intergovernmental Panel on Climate Change (IPCC) released its Sixth Assessment Report of Working Group III (AR6 WGIII), which provides a comprehensive overview of climate change mitigation, and calls for global awareness with a prominent role for climate finance. The AR6 report provides an updated global assessment of climate change mitigation progress and commitments, and examines the sources of global emissions. The previous AR5 Report was published in 2014.

The Paris Agreement recognizes the key role that finance must play in both climate change mitigation and adaptation. Although climate finance is on the move, its progress appears gradual considering that an estimated $6.3 trillion will be needed each year until 2030 to stay on track.

The latest IPCC Report highlights the global shift to renewable energy generation and electrification as a central goal for climate finance. The renewable energy sector is developing with a focus on wind and solar power, reaching a 10% share of global electricity generation for the first time by 2021.

The Climate Bonds Market Intelligence report, prepared by Climate Bonds Initiative, estimates that the renewable energy sector attracted the largest share of green investment among all sectors and types of issuers in 2021, followed by investments in low-carbon buildings and transportation.