Climate finance

Climate finance

Subclass of	investment
Facet give	climate change mitigation
Studied in	environment and climate finance
Used by	Q10546259

Climate finance be umbrella term give financial resources such as loans, grants, anaa domestic budget allocations give climate change mitigation, adaptation den/anaa resiliency. Finance fi cam from private den public sources, wey dem fi channel am by various intermediaries such as multilateral development banks anaa oda development agencies. Development agencies be particularly important insyd de transfer of public resources from countries dem develop to countries dem dey develop for light of dema UN Climate Convention obligations insyd.^[2]

Dem get two main sub-categories for climate finance insyd dey base for different aims top. Mitigation finance be investment wey dey aim make e reduce global carbon emissions. Adaptation finance dey aim say ego respond to de consequences for climate change.^[3] Globally, dem get much greater focus for mitigation, wey dey account for over 90% spending for climate top.^[4][5] Renewable energy be important growth area for mitigation investment den e get growing policy for support.^[6]

Finance fi cam from private den public sources, den sam times de two fi to join sure say dem fi create financial solutions. Ebe widely recognized say public budgets go be insufficient wey ego meet de total needs give climate finance, den dat private finance go be important to close de finance gap.^[7] Na dem dey use chaw different financial models anaa instruments give financing climate actions. For example, green bonds (anaa climate bonds), carbon offsetting, den payment give ecosystem services be sam solutions dem promote. Der be considerable innovation for dis area insyd as well as transfer of solutions wey dem no develop am specifically give climate finance, such as public–private partnerships den blended finance. Der sanso be chaw challenges wey dey include dat of dem dey measure den dey track financial flows, for equitable financial support to countries wey dey develop for cutting emissions den adapting to impacts, den for incentivizing further private sector investments top.

1. ↑ "World Energy Investment 2023 / Overview and key findings". International Energy Agency (IEA). 25 May 2023. Archived from the original on 31 May 2023. "Global energy investment in clean energy and in fossil fuels, 2015-2023 (chart)" — From pages 8 and 12 of World Energy Investment 2023 (archive).
2. ↑ "Top-down Climate Finance Needs". CPI. Retrieved 2024-06-27.
3. ↑ Kreibiehl, S., T. Yong Jung, S. Battiston, P. E. Carvajal, C. Clapp, D. Dasgupta, N. Dube, R. Jachnik, K. Morita, N. Samargandi, M. Williams, 2022: Investment and finance. In IPCC, 2022: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [P.R. Shukla, J. Skea, R. Slade, A. Al Khourdajie, R. van Diemen, D. McCollum, M. Pathak, S. Some, P. Vyas, R. Fradera, M. Belkacemi, A. Hasija, G. Lisboa, S. Luz, J. Malley, (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA. doi:10.1017/9781009157926.017
4. ↑ OECD (2022), Aggregate trends of Climate Finance Provided and Mobilised by Developed Countries in 2013-2020.
5. ↑ New, M., D. Reckien, D. Viner, C. Adler, S.-M. Cheong, C. Conde, A. Constable, E. Coughlan de Perez, A. Lammel, R. Mechler, B. Orlove, and W. Solecki, 2022: Chapter 17: Decision-Making Options for Managing Risk. In: Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [H.-O. Pörtner, D.C. Roberts, M. Tignor, E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V. Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 2539–2654, doi:10.1017/9781009325844.026
6. ↑ "Global Landscape of Climate Finance 2023" (PDF). CPI.
7. ↑ United Nations Environment Programme (2023). Adaptation Gap Report 2023: Underfinanced. Underprepared. Inadequate investment and planning on climate adaptation leaves world exposed. Nairobi.