Climate Finance Terminologies

𝐂𝐋𝐈𝐌𝐀𝐓𝐄 𝐅𝐈𝐍𝐀𝐍𝐂𝐄 𝐓𝐄𝐑𝐌𝐈𝐍𝐎𝐋𝐎𝐆𝐈𝐄𝐒
(Post from Zsuzsanna Tajti PhD, CFA, FRM, PRM, CIA, SCR 🌱)

The ‘𝐂𝐥𝐢𝐦𝐚𝐭𝐞 – 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐧𝐠 𝐟𝐨𝐫 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 – 𝐑𝐞𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐫𝐞𝐬𝐞𝐧𝐭 𝐟𝐨𝐫 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭 𝐅𝐮𝐭𝐮𝐫𝐞’ collection, published by Climate Inc, is an amazing awareness raising piece of work.

It explains climate finance terminologies in plain language, bringing them closer to the public, providing clarity into this complex world.

𝑾𝑯𝑨𝑻 𝑰𝑺 𝑪𝑳𝑰𝑴𝑨𝑻𝑬 𝑭𝑰𝑵𝑨𝑵𝑪𝑬?

‘𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 refers to the financial resources provided to address the challenges of Tagar#climatechange. This funding is intended to support efforts in mitigating the impacts of Tagar#climate change, adapting to its effects, and transitioning to a more Tagar#sustainable, low-carbon future. Climate finance is crucial for helping countries, especially those that are more vulnerable and less economically developed, cope with the impacts of climate change and contribute to global efforts to reduce greenhouse gas emissions.’

𝑫𝑰𝑭𝑭𝑬𝑹𝑬𝑵𝑪𝑬 𝑶𝑭 𝑴𝑰𝑻𝑰𝑮𝑨𝑻𝑰𝑶𝑵 𝑭𝑰𝑵𝑨𝑵𝑪𝑬 𝑨𝑵𝑫 𝑨𝑫𝑨𝑷𝑻𝑨𝑻𝑰𝑶𝑵 𝑭𝑰𝑵𝑨𝑵𝑪𝑬

While 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 is defined as ‘Funding directed towards projects and initiatives that aim to reduce or prevent greenhouse gas emissions. This includes Tagar#investments in Tagar#renewableenergy, energy efficiency, and other activities that contribute to a lower-carbon Tagar#economy.’…

… 𝐀𝐝𝐚𝐩𝐭𝐚𝐭𝐢𝐨𝐧 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 means ‘Resources allocated to projects and programs that enhance the resilience of communities, ecosystems, and infrastructure to the impacts of climate change. This may involve measures such as building climate-resilient infrastructure, improving water management, and implementing strategies to protect against extreme weather events.’

𝑨𝑵𝑫 𝑾𝑯𝑨𝑻 𝑨𝑩𝑶𝑼𝑻 𝑻𝑯𝑬 𝑫𝑰𝑭𝑭𝑬𝑹𝑬𝑵𝑻 𝑺𝑶𝑼𝑹𝑪𝑬𝑺 𝑶𝑭 𝑭𝑰𝑵𝑨𝑵𝑪𝑰𝑵𝑮?

It is also clarified that ‘𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 – Investments and funding from private sector entities, including banks, corporations, and institutional investors, to support climate-related projects and initiatives.’ – is only one of the potential sources, and ‘𝐁𝐥𝐞𝐧𝐝𝐞𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 – The strategic use of public funds to leverage additional private sector Tagar#investment for climate-related projects, combining public and private resources to address financing gaps.’ – can be also a powerful way of financing both Tagar#mitigation and Tagar#adaptation.

Are you curious which other terminologies are covered in this collection? Click on the report!
In a next iteration it would be useful to create such a collection for other related Tagar#risks, such as Tagar#biodiversity Tagar#risk and other Tagar#nature-related vulnerabilities!

source
https://www.linkedin.com/feed/update/urn:li:activity:7179736610911965184/