Climate change financing, or climate finance, refers to the funding allocated to actions aimed at addressing climate change. This funding can come from several sources. Public finance is provided by governments and taxpayers to support climate action, particularly in areas where private finance is either unavailable or insufficiently attracted. Private businesses also contribute to climate finance, often by investing in sustainable practices or green technologies. Additionally, grassroots fundraising campaigns can serve as a valuable source of climate finance, driven by community efforts. Climate finance plays a crucial role in both mitigation, where large-scale investments are needed to reduce greenhouse gas emissions, and adaptation, which requires financial resources to help communities cope with the impacts of a changing climate.
