CLIMATE FINANCE

Climate action requires significant financial investments by governments and businesses, such as new energy systems and infrastructure as well as climate-resilient seeds that can withstand the impacts of climate change. Climate inaction is vastly more expensive.

Types of Funding

1. Public funding, provided by governments (and taxpayers), is essential to finance actions for which private funding does       not yet exist or would not normally attract private funding like for investments that contribute to a public good such as       reinforcing the banks of a river to reduce the risk of flooding in risk area.
2. Private financing is used for investing in projects that are critical to the new green economy such as renewable energy       power plants or electric cars.

Many developing countries lack the resources and technology to do so. Therefore, all countries agreed that developed nations with money and technological know-how must increase their financial support for climate action in developing countries, especially the poorest and most vulnerable.

One critical step is for industrialized countries to fulfil their commitment of the Paris Agreement to provide $100 billion annually to developing countries so they can adapt mitigate and move towards greener economies. International cooperation is essential to addressing climate change .