Climate finance refers to the funding required to mitigate and adapt to climate change impacts, primarily in developing countries. Over the past decade, the key sources of climate finance have evolved significantly. Here are some of the main sources and their evolution:

Public Finance

Private Finance

Innovative Finance Mechanisms

International Climate Negotiations

In summary, climate finance has evolved to encompass a broader range of sources, with increasing contributions from both public and private sectors, as well as innovative finance mechanisms. The challenge going forward is to scale up these efforts to meet the ambitious climate targets set under international agreements.

In recent years, the main sources of external financing for pro-climate, pro-environmental, pro-environmental economic ventures, including financing for the implementation of investment projects for the construction of new power plants generating energy from renewable and zero-emission energy sources and other economic ventures implemented as part of the green transformation of the economy, include subsidies from the state's public finance system and commercial financing conducted by banks and other financial institutions. These sources of external financing of pro-climate, pro-environmental, pro-ecological economic ventures are referred to as green financing. Green financing implemented from the sources of the state's public finance system is a key instrument for implementing national pro-climate and pro-environmental policies. In turn, commercially functioning commercial banks carry out green financing by providing green loans, green leasing and other paracredit forms of external financing of their clients' business ventures that are part of the green transformation of the economy, increasing the scale of implementation of sustainable development goals, increasing the scale of pro-climate and pro-environmental corporate responsibility. Commercially functioning banks and other financial institutions providing green financing are improving their image as financial sector entities pursuing sustainable development goals and adding green financing to their missions and development strategies by becoming active participants in the realization of the green transformation of the economy. Within the framework of green lending, commercial banks take into account the issue of greenness and sustainability of lent business ventures in the processes of carrying out creditworthiness analyses of potential borrowers, in credit risk management processes, in credit risk valuation, etc.

I am conducting research on this issue. I have included the conclusions of my research in the following article:

IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVELOPMENT AS A KEY ELEMENT OF THE PRO-ECOLOGICAL TRANSFORMATION OF THE ECONOMY TOWARDS GREEN ECONOMY AND CIRCULAR ECONOMY

Article IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVE...

I invite you to get acquainted with the issues described in the above-mentioned publication and to scientific cooperation in this field.

Best wishes,

Dariusz Prokopowicz

The above text is entirely my own work written by me on the basis of my research.

In writing this text I did not use other sources or automatic text generation systems.

Copyright by Dariusz Prokopowicz

Key Sources of Climate Finance

1. Public Finance:

• Government Budgets and Grants: Governments allocate funds specifically for climate-related projects and initiatives. This includes domestic budgets, bilateral aid, and contributions to international climate funds.

• Multilateral Development Banks (MDBs): Institutions like the World Bank, Asian Development Bank, and African Development Bank provide significant funding for climate projects, often in the form of loans, grants, and technical assistance.

• Climate Funds: Dedicated funds such as the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund are designed to support climate action in developing countries.

2. Private Finance:

• Private Sector Investments: Corporations and private investors contribute through direct investments in renewable energy, energy efficiency, and other climate-resilient technologies.

• Institutional Investors: Pension funds, insurance companies, and other large investors are increasingly directing funds towards sustainable and climate-friendly projects.

• Green Bonds: These are bonds specifically earmarked for climate and environmental projects.

dear Zahra

Good comment that is closely related to the topic, but needs further clarification