Climate finance

Climate finance is an umbrella term for loans, investments, and other forms of financial capital allocation in the area of climate change mitigation, adaptation and/or resiliency.

There are two main sub-categories of climate finance: private and public, and the two can intersect. Private climate finance refers to capital emanating from institutional and retail investors with the aim of addressing climate change. This includes venture capital for climate, asset management for climate (such as fixed income and listed equity products), and bank lending for climate (including loans from credit unions).^[2] Public climate finance refers to capital emanating from taxpayer money managed by international, national, and sub-national governments with the aim of addressing climate change.