Climate finance refers to local, national, or transnational financing—drawn from public, private, and alternative sources—that is used to support mitigation and adaptation actions addressing climate change. In essence, it is the financial mechanism that powers the global response to climate challenges. Whether it's funding renewable energy projects, retrofitting infrastructure, or helping vulnerable communities adapt to shifting environmental patterns, climate finance plays a pivotal role in the global transition toward sustainability.

The need for climate finance stems from the vast economic and social implications of climate change. As global temperatures rise, so too do the costs associated with extreme weather events, sea-level rise, ecosystem degradation, and economic disruptions. Climate finance is not just about money—it's about shaping the future we want to live in.