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Climate finance refers to financing aimed at reducing greenhouse gases (GHG) emissions and enhancing GHG sinks. It also aims to reduce the vulnerability of, and to maintain or increase the resilience of, human and ecological systems in response to negative climate change impacts. The reduction in GHGs is expected to align with the goal of the Paris Agreement, which seeks to limit “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels”.
A. Introduction to Climate Finance
Climate finance aims at reducing emissions and enhancing sinks of GHGs, and aims at reducing the vulnerability of, and maintaining and increasing the resilience of, human and ecological systems to negative climate change impacts
Learning objectives:
- Describe the causes, impacts and responses to climate change.
- Describe the risks arising from climate change.
- Understand that climate change also leads to opportunities for Financial Institutions
- Distinguish between climate finance, green finance and sustainable finance.
- Describe the sources of climate finance commonly available to Financial Institutions