A person walking through a banana tree field

Climate Finance

An ecosystem services scheme supported by USAID and Hershey pays farmers for maintaining naturally occurring trees on their cocoa farms.

The world needs trillions of dollars to reduce greenhouse gas emissions, finance the clean energy transition, and cope with the impacts of climate change. In addition to increasing the scale of these investments, climate finance also needs to be equitable–investments should benefit women, Indigenous Peoples, youth, and other marginalized and underserved populations. At COP26 in 2021, USAID committed to mobilizing $150 billion in climate finance by 2030 from public and private sources as part of a global effort to substantially increase global climate finance flows to match projected needs. USAID is developing innovative solutions to achieve this goal, which is now one of the six ambitious high-level targets included in USAID's Climate Strategy. The Agency is reducing risk and aligning incentives for investors and channeling investment into sectors where it is urgently needed, including agriculture, energy, biodiversity, environmental protection, water, infrastructure, and economic growth.


Climate Finance Training
Gender Equality and Climate Finance
Mobilizing Climate Finance for Clean Energy and Energy Efficiency Investments: A Primer for Integration into USAID Energy Sector Activities
Climate Finance Assessment: Opportunities for Scaling Up Financing for Clean Energy, Sustainable Landscapes, and Adaptation

Catalyzing Private Finance for Climate Action

Catalyzing private finance for climate action is essential to achieving goals for limiting global warming. USAID can play a pivotal role in climate action across partner countries by increasing funding for activities that catalyze and crowd in private capital to climate-focused investments.

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USAID Progress on Climate Finance

NREL identified ten climate finance levers that could be applied to USAID programs to increase the scale of investment in clean energy and energy efficiency in partner countries.
Mini-Grid Solar Project on a Remote Island in Myanmar
C3F aims to encourage the flow of private sector capital into coastal resilience and blue carbon projects that contribute to climate mitigation and adaptation while benefiting local communities.
A man diving amongst a school of fish off the coast of the Maldives
Taking a systems thinking approach is critical to both dealing with the immediate issues, but also intervening in ways that catalyzes ongoing improvements in how the system manages challenges going forward.
Man smiling holding walking stick in maize field

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