What is meant by Climate Finance? Everything you need to know!
Mankind has always used the environment for its own personal benefit, and mostly, it hasn’t paid back it.
However, as climate concerns are increasing and the world is bearing the brunt of environmental damage, many countries have now become aware of the need to preserve nature and c control climate.
Leaders from around 200 countries join hands every year and debate under one roof to decide how much the developed countries are going to pay their share towards something called the climate fund.
Wondering what is meant by the climate fund? Here are all your doubts solved.
Climate finance, as defined by the United Nations Framework Convention on Climate Change, is a term used for local, national, or transactional financing. This financing is gathered from private, or public alternative sources of financing and is made to use for mitigation and adaptation actions to address climate change.
When leaders from around 200 countries sit under one roof, they set and share agendas, agree on treaties, and finalize agreements. This is the time when developed nations of the world pledge to aid under-developed and developing countries in fighting the adverse effects of climate change.
The Kyoto Protocol, Convention, and Paris Agreement demand financial assistance from the Parties with advanced financial resources to the Parties that are more vulnerable.
The purpose is to contribute toward climate change. This recognizes the country’s capacity to prevent climate change and deal with its effects.