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Developed country pledges to provide finance to developing countries for their mitigation actions and adaptation needs sit at the heart of international climate cooperation. Present commitments are deficient both in terms of their quantity and their distribution among developing countries. Using wind and solar energy financing data we highlight the unequal distribution of international climate finance among developing countries and identify the determinants of investment suitability that drives the flows of non-aid climate finance more generally. Economic capabilities, business environment, climate policy environment and electricity access levels are significant drivers of private finance flows, whereas public finance is driven chiefly by domestic climate policy ambition since the Paris Agreement. Climate-vulnerable countries however struggle to access finance, with path dependency in investment flows further reinforcing existing inequalities. Forthcoming deliberations on quantifying long-term finance targets should thus incorporate mechanisms to distribute finance more equitably to meet country-specific needs and priorities.

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