Driving towards climate finance: tackling the solution of the business ecosystem

The Paris Agreement's goal has driven trillion-dollar climate investment, prompting firms to assess its impact on portfolios. Our study employs three methods: regression, fuzzy-set analysis, and necessary condition analysis. It reveals that no single business factor is crucial for climate finance success. Instead, laws and regulations are key, driving climate finance progress. Despite the business ecosystem’s ostensible lack of substantive impact on climate finance, the ecosystem of laws and regulations emerges as a pivotal force in catalyzing the progression of climate finance. Specifically, when climate finance attains the 50% milestone, it assumes the status of an access threshold; within the range of 60% to 70%, it transitions into a lever fulcrum; and ultimately, once the 80% threshold is surpassed, it ignites a synergistic interplay within the broader business ecosystem. We offer new climate finance insights, guiding policymakers, helping firms manage projects, and providing an analytical tool for future research.