Tracked ﬁnancial ﬂows fall short of the levels needed for 
adaptation and to achieve mitigation goals across all sectors and 
regions (high conﬁdence). These gaps create many opportunities 
and the challenge of closing gaps is largest in developing 
countries (high conﬁdence). This includes a stronger alignment of 
public ﬁnance, lowering real and perceived regulatory, cost and market 
barriers, and higher levels of public ﬁnance to lower the risks associated 
with low-emission investments. Up-front risks deter economically 
sound low carbon projects, and developing local capital markets are an 
option. Investors, ﬁnancial intermediaries, central banks and ﬁnancial 
regulators can shift the systemic underpricing of climate-related risks. A 
robust labelling of bonds and transparency is needed to attract savers. 
(high conﬁdence) {WGII SPM C.5.4; WGIII SPM B.5.4, WGIII SPM E.4, 
WGIII SPM E.5.4, WGIII 15.2, WGIII 15.6.1, WGIII 15.6.2, WGIII 15.6.7}
The largest climate ﬁnance gaps and opportunities are in 
developing countries (high conﬁdence). Accelerated support 
from developed countries and multilateral institutions is a critical 
enabler to enhance mitigation and adaptation action and can address 
inequities in ﬁnance, including its costs, terms and conditions, and 
economic vulnerability to climate change. Scaled-up public grants for 
mitigation and adaptation funding for vulnerable regions, e.g., in Sub-
Saharan Africa, would be cost-effective and have high social returns 
in terms of access to basic energy. Options for scaling up mitigation 
and adaptation in developing regions include: increased levels of public 
ﬁnance and publicly mobilised private ﬁnance ﬂows from developed 
to developing countries in the context of the USD 100 billion-a-year 
goal of the Paris Agreement; increase the use of public guarantees 
to reduce risks and leverage private ﬂows at lower cost; local capital 
markets development; and building greater trust in international 
cooperation processes.