In the face of increasingly dramatic effects of climate change, financing climate action is no longer optional — it has become a matter of survival. The European Union is steadily strengthening its position as a leader in this field, both through international financial support and ambitious domestic climate transformation strategies.
According to data from the Council of the European Union, in 2024 the EU and its 27 Member States allocated €31.7 billion from public sources to climate action. Moreover, these funds mobilized an additional €11 billion in private investments. This money primarily goes to developing countries, helping to reduce greenhouse gas emissions and adapt to the impacts of the climate crisis.
Over half of EU public spending is directed toward adaptation efforts or projects that combine climate mitigation with adaptation. Grants play a key role in enhancing the effectiveness of support, but the EU does not limit itself to traditional instruments. Innovative financial solutions — such as guarantees, loans, or direct investments in companies — help attract private capital to fight climate change.
The EU is also engaged in multilateral initiatives. Climate Funds and the Loss and Damage Response Fund allocated $250 million in 2025/26 to support the least developed countries and island states most vulnerable to the extreme effects of global warming. Through this, the EU not only invests in technology and infrastructure but also protects human lives and the security of communities most affected by the climate crisis.