Climate Finance

 

Climate finance refers to local, national, or transnational financing from public, private, and alternative sources to support mitigation and adaptation actions addressing climate change. The majority of the funds are allocated for disaster adaptation and mitigation.

Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions. Climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.

The loss and damage fund is more focused on developing countries, climate financing is indeed an important step that will address these climate crises. Given that India is an agrarian country and that climate change has the greatest impact on agriculture, the new loss and damage fund would aid in the transition.

Climate finance can come from very different sources, which can include: public or private, national or international, bilateral or multilateral. sources of climate finance:

Green Bonds

Debt Swaps

Guarantees

Concessional Loans

Grants and Donations