Net Climate Finance

Encouraging the scale-up of climate finance flows by not only increasing “clean” flows but also reducing “dirty” finance.

What is Net Climate Finance?

Net climate finance (a term coined by RMI) is the value of climate finance flows minus financial flows to high-emissions and maladaptive activities.

Why Net Climate Finance?

The last ten years have seen a wave of commitments, institutions, and initiatives focused on scaling up climate finance. However, supporting climate-friendly investment is only half the story. In order to “make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” (Paris Agreement), we must also scale down financing for high-emissions infrastructure and activities.

Why it Matters

Preliminary comparisons of clean and dirty energy sources suggest that net climate finance is in the red by almost any measure. In other words, the balance of investments, including via public finance, are pointing in the wrong direction at a critical juncture for climate action.

What We're Doing

RMI’s work on net climate finance underscores an opportunity to restrict high-emissions finance via 1) policies at multilateral and bilateral finance institutions, and 2) the elimination of domestic fossil fuel subsidies. RMI is working with partner organizations to catalyze the transition to net positive climate finance.

Our Team

paul bodnar headshot

Paul Bodnar
Managing Director

lucy kessler

Lucy Kessler
Senior Associate

Tyeler Matsuo
Senior Associate

denali hussin

Denali Hussin
Program Marketing Lead

julia headshot

Julia Meisel
Senior Associate

James Mitchell



How Private Finance is Moving the Needle on Climate Action

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Discussion Paper

Reinventing Climate Finance: Four Levers to Drive Capital Stock Transformation—2018

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Discussion Paper

Net Climate Finance: Reconciling the Clean and Dirty Sides of the Finance Ledger—2017

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What Salad and Ice Cream Tell us About Climate Finance—2017

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