Accounting for roughly two-thirds of economic activity, the private sector is integral in the transition to net-zero emissions. As the private sector perceives less risk and greater business opportunity in investments that protect climate and nature, climate finance flows will expand and the transition to net-zero emissions will accelerate. 

 

## [Scale up private investment for climate and nature](/finance/scale-private-investment-climate-and-nature)

The private sector has begun [chasing the opportunity](https://www.weforum.org/agenda/2023/02/low-carbon-investment-record-2022/) to create a sustainable economy — companies are making capital investments in low-carbon technologies, and lenders and investors are providing cheaper financing that enables those investments.

Financial and non-financial corporations are also making [commitments](https://zerotracker.net/) and setting [targets](https://sciencebasedtargets.org/net-zero) to align their portfolios and balance sheets with sustainability objectives: these financial commitments need to cause real-world changes that support decarbonization and protect nature and biodiversity.

But the scale and pace of financial flows to climate- and nature-based solutions must increase substantially. By 2030, we need to increase global private climate financial flows from the current level of [$1.3 trillion](https://www.climatepolicyinitiative.org/publication/global-landscape-of-climate-finance-2025/)[ ](https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf)per year to at least [$3.1 trillion per year](https://systemschangelab.org/sites/default/files/2025-10/SoCA%20Report_Final_10.21.2025.pdf). In addition, we need to [triple investments](https://www.unep.org/resources/state-finance-nature) in nature-based solutions and increase biodiversity financial resources to at least [$200 billion](https://www.cbd.int/article/draft-1-global-biodiversity-framework) per year. Simultaneously, the private sector needs to phase out financing of fossil fuels and technologies that are dependent upon them.

To effectively scale up private sector investment for climate and nature, we need to shift capital investment in the material economy, decrease the cost of capital for sustainable technologies, and ensure commitments from corporates and financial institutions are resulting in these changes. We will also need to mobilize public investment to steer the market toward a net-zero, sustainable economy.



 

 Learn More 

[Transforming Climate Finance](https://systemschangelab.org/events/3-breakthroughs-transform-climate-finance)



This webinar recording features a high-level discussion with finance leaders on how to unleash far more finance to tackle the climate crisis and accelerate sustainable development.