climate fund (Q1362)

A dedicated financial mechanism that mobilises, manages and disburses resources to support actions addressing climate change. Climate funds are designed to facilitate the transition to a low-carbon, climate-resilient future by financing projects and initiatives that reduce greenhouse gas emissions (mitigation), help societies adapt to the impacts of climate change (adaptation) and pay for the economic harm from climate change that cannot be completely prevented by adaptation measures (loss and damage). Climate funds can be public, private or a blend of both but this concept is focused on public climate finance. They may operate at international, national or local levels but this concept is focused on international and national climate finance flows. Climate funds use a range of financial instruments and are often structured to attract additional investment from governments, development banks, businesses and other stakeholders. Their governance, priorities and funding mechanisms vary, but all climate funds share the common goal of accelerating climate action through strategic financial support.