Lack of Finance as a Barrier to Climate Action 
Insufﬁcient ﬁnancing, and a lack of political frameworks and 
incentives for ﬁnance, are key causes of the implementation 
gaps for both mitigation and adaptation (high conﬁdence). 
Financial ﬂows remained heavily focused on mitigation, are 
uneven, and have developed heterogeneously across regions 
and sectors (high conﬁdence). In 2018, public and publicly mobilised 
private climate ﬁnance ﬂows from developed to developing countries 
were below the collective goal under the UNFCCC and Paris Agreement 
to mobilise USD 100 billion per year by 2020 in the context of 
meaningful mitigation action and transparency on implementation 
(medium conﬁdence). Public and private ﬁnance ﬂows for fossil fuels 
are still greater than those for climate adaptation and mitigation (high 
conﬁdence). The overwhelming majority of tracked climate ﬁnance 
is directed towards mitigation (very high conﬁdence). Nevertheless, 
average annual modelled investment requirements for 2020 to 2030 
in scenarios that limit warming to 2°C or 1.5°C are a factor of three 
to six greater than current levels, and total mitigation investments 
(public, private, domestic and international) would need to increase 
across all sectors and regions (medium conﬁdence). Challenges 
remain for green bonds and similar products, in particular around 
integrity and additionality, as well as the limited applicability of 
these markets to many developing countries (high confidence). 
{WGII SPM C.3.2, WGII SPM C.5.4; WGIII SPM B.5.4, WGIII SPM E.5.1} 
Current global ﬁnancial ﬂows for adaptation including from public 
and private ﬁnance sources, are insufﬁcient for and constrain 
implementation of adaptation options, especially in developing 
countries (high conﬁdence). There are widening disparities between 
the estimated costs of adaptation and the documented ﬁnance 
allocated to adaptation (high conﬁdence).