NDF Explains: What is climate finance?
Our new explainer series, NDF Explains, sheds light on the key concepts behind global climate action.
In the first episode of NDF’s new explainer series, we look at ‘climate finance’ — a crucial tool in the global efforts against climate change.
Climate finance is the financing that drives climate action through various instruments such as grants, equity or concessional loans.
With these tools, we can build effective and meaningful solutions to protect our planet and the most vulnerable regions and people in developing countries.
“Climate finance can mitigate climate change, by reducing emissions. It can also help adapt to the consequences of climate change as it drives everything from shaping national policies to driving on the ground initiatives that increase climate resilience,” explains Satu Santala, NDF’s Managing Director.
Watch the first episode of NDF Explains:
NDF’s Managing Director Satu Santala explains ‘Climate finance’ in our series ‘NDF Explains’.
Global commitments reflect urgency for climate action
The importance of climate finance is shown by global commitments: Since 2009, developed nations have committed to support developing countries climate action by mobilising $100 billion annually, and the latest joint commitment is to increase mobilisation to $300 billion by 2035.
Satu emphasises that “Despite these commitments, global climate financing still falls short of what is needed to meet the targets set by the Paris Agreement. More ambitious and coordinated efforts are crucial.”
We focus on delivering climate financing
With more than a decade of experience in climate financing, focusing on the nexus between climate change and development in lower-income countries and countries in fragile situations, NDF has witnessed firsthand how climate finance can transform lives and ecosystems.
In partnership with others, NDF finances projects in climate-resilient agriculture, renewable energy, disaster preparedness, and more — creating green jobs, improving livelihoods, and building long-term climate resilience.