Global investment in activities to reduce planet-warming emissions and vulnerability to climate change grew 18 per cent to £260 billion in 2014, as private backing for renewable energy technologies surged, researchers said.
More money than ever before was channelled into action to curb climate change and its impacts, after funding levelled off in 2012 and declined in 2013, according to an annual report from the Climate Policy Initiative (CPI) advisory group.
"Two weeks out from the international climate negotiations in Paris, our analysis demonstrates that countries around the world are investing to drive their own economic growth and development," Barbara Buchner, senior director of the CPI and lead author of the study, said.
Around three-quarters of total investment and more than 90 per cent of private finance was raised and spent in the same country, the report noted.
Worldwide, private investors poured £160bn into renewable energy last year, up 26 per cent from 2013, leading to record installation of solar photovoltaics and onshore wind power, with especially strong growth in China, the report said.
Some renewable energy technologies are edging closer to becoming fully cost-competitive with fossil fuels, it added.
Government investment, meanwhile, reached at least £97bn in 2014, continuing its steady rise over the past three years.
Yet, despite the 2014 increase in funding for cleaner, more resilient economies, the CPI said even greater effort and a wider geographic spread for investment are needed to keep global warming to an internationally agreed target of 2 degrees Celsius (3.6 Fahrenheit).
The report noted that around £11 trillion is required between 2015 and 2030 to shift the global energy system in line with the 2 degree goal.
More will be needed to curb emissions from deforestation and help societies and economies adapt to more extreme weather and rising seas, it added.
"(Climate spending) is going in the right direction but more needs to happen, and clearly on the adaptation side as well," Ms Buchner said.
Funding for climate change adaptation - which includes protecting infrastructure from damage, switching to hardier crops and improving weather information services - stayed flat in 2014, the report showed.
But Ms Buchner said the data was incomplete because it did not include adaptation investment by the private sector, where more transparency is needed.
The numbers will be scrutinised by officials in the run-up to the Paris climate summit, beginning on November 30, where some 195 countries are due to stitch together a new deal to curb global warming.
Climate finance is a sticky topic for negotiators, with developing countries seeking firmer reassurance that rich nations will make good on a promise to mobilise £66bn a year to combat climate change in vulnerable states by 2020.
They also want to see £66bn fixed as a floor for increased funding from 2020, and some are also looking for a separate commitment on government money for adaptation.
A study issued in October by the CPI and the Organisation for Economic Co-operation and Development showed donors are almost two-thirds of the way to the £66bn goal.
But just 16 per cent of the £75bn in funding for developing nations over 2013 and 2014 was allocated purely for adaptation measures, with 7 percent more going to projects that support both adaptation and mitigation efforts to cut emissions.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here