This study aims to assess the alignment of global sustainable financial flows with transition investment priorities. First, we identify investment gaps based on the difference between the required annual investment to meet global net-zero emissions (NZE) targets and current investment flows. Our assessment reveals that nearly all countries must significantly accelerate their efforts, as their current investment levels fall short of what is required. Second, and perhaps more importantly, investment gaps are particularly large for non-Annex I (developing) countries. Financing these large-scale investments continues to be a major global challenge. The size of global environmental, social and governance (ESG) finance remains low. Specifically, despite their large investment gaps, developing countries receive only a minor share of global ESG funds, where access to conventional finance is already limited.

Senior Fellow-Climate & Sustainability
Dr. Yilmaz currently works as a senior fellow I in the Climate and Sustainability program. His current research agenda aims…
Dr. Yilmaz currently works as a senior fellow I in the Climate and Sustainability program. His current research agenda aims to enhance our understanding of the financial and economic consequences of the sustainable energy transition and to design effective policies to balance risk and growth prospects. Prior to joining KAPSARC, Dr. Yilmaz worked as an economist at the Central Bank of the Republic of Turkey, where he was actively involved in the research and the design of policies for the private and banking sectors. He also worked as a consultant for the World Bank and spent a year as an assistant professor of economics at ADA University. He has authored various academic and policy articles and attended academic conferences and workshops. He holds a Ph.D. in economics from the University of Calgary.
Expertise
- Sustainable Finance and Investment
- Applied Banking and Finance
- Corporate Taxation
- Public Economics
- Applied Micro-Econometrics
Publications See all Fatih Yılmaz’s publications

The Circular Carbon Economy Index 2024 – Results
This study aims to assess the alignment of global sustainable financial flows with transition investment…
14th November 2024
Why Does Sustainable Finance Not Flow into the Global South?
This study aims to assess the alignment of global sustainable financial flows with transition investment…
12th November 2024