Climate finance is local, national or international funding – from public, private and other sources – that aims to “support mitigation and adaptation actions” to address climate change. In other words, it’s the money the world needs to help poorer, developing nations to prevent climate change and cope with its impacts. Climate finance is essential to help significantly reduce emissions and enable all countries to adapt to the effects of a changing climate.
In 2009, rich countries agreed to collectively provide at least $100 billion a year to the developing world by 2020 to help them cut carbon emissions and deal with the impacts of the climate crisis. However, this target was missed, and is now expected to be met within two years – by 2023 – according to a report published before COP26, known as the Climate Finance Delivery Plan.