What Is Climate Finance And Why Is It Important?

We, humans, have made a lot of progress, and there is much more to come, but we forgot to take care of the nature around us during our journey. Yes, the climate that let us breathe, that let us live and survive to make us fulfil all our materialistic dreams. Isn’t that selfish that we keep working for what we want in life and not pay heed to the main support factor to make this all happen? It is the reason that like any other industry, the finance industry gave birth to climate finance.

What is climate finance?

Climate finance is about obtaining funds through national and international financing platforms to address climate change issues. It ensures the contribution of the world in the improvement of environmental concerns that occur due to change in the climate.

The  Kyoto Protocol

In the efforts of making the earth a better place to live the Kyoto Protocol. It is an international treaty that takes forward the commitments of the United Nations Framework Convention on Climate Change https://bit.ly/38kkduO  of 1992. The Kyoto protocol brings the member countries to work the issues related to climate issues. For this, the countries will help financially to create a mutual platform of significant change.

It has the following goals –

  • Reduce greenhouse gas effects
  • Report the concerns periodically
  • Develop eco-friendly infrastructure
  • Follow the nature-friendly manufacturing

The Kyoto Protocol aims to reduce the emission of precisely six types of emissions.

  • Methane (CH4)
  • Carbon dioxide (CO2)
  • Hydrofluorocarbons (HFCs)
  • Nitrous oxide (N2O)
  • Sulphur hexafluoride (SF6)
  • Perfluorocarbons (PFCs)

What is climate finance so significant?

You might be thinking that if we want to deal with the situation, plan more tress, use less or no plastic and stay eco-friendly. What is the need of creating a

separate stream of finance for it? Implementing rules in the countries should be enough. But many reasons explain why it was necessary to bring something like climate finance into the picture.

Developing countries need to do a lot, and climate change is a big  obstacle

The developed countries have achieved a satisfactory level but not the developing ones. They have many miles to cover, but the global concerns on climate put pressure on them. They cannot stop moving forward, but the reality is that nature has been exploited so many times, that it has less tolerance left.

Money invested collectively by the countries across the world will help make a platform for mutual growth. The developed countries can’t remain ignorant about the concerns of the developing countries because they need them for some or other reason. Besides the commercial reasons, it is about taking responsibility for what they have given to nature.

  • Putting a limit on carbon footprints by all countries, especially the developed ones, is necessary. Those that are left behind or need some more time to attain completeness in the name of development may not bear limits. However, such countries are in a bigger need of ec-friendliness to ensure a safe move towards a better tomorrow.
  • It is necessary to address climate change because bad weather, distorted season patterns, pollution issues, cause health issues. Unhealthy natives cannot make the country progress. Developing countries have to do something about it, and climate finance is essential here.
  • Flood, destructive cyclones, and increasing temperature all make the development more difficult, making it essential to invest in the future. Such things destroy infrastructure, make it difficult for the normalcy to stay for a very long time.

It is an investment for the future of human civilisation

Something brings us all on the same platform when we talk about investing money to prevent climate change. The melting peaks of hills, the increasing water level, the polluted air can spoil our efforts of centuries to be tagged as the smartest creature on the earth.

  • Keep sigh as well as insight for nature – We need to understand that it is not bad to keep worldly desires, but everything comes from nature after all, and we should not forget that. The need is to keep an insight. When we apply for personal car loans to buy a new model luxury car, our mind should ask, is it an eco-friendly car.
  • Investment in nature is much more profitable – Just like you invest in retirement plans, mutual funds, property etc. for a better future, put some money for the climate well-being. It is much more important than anything else, especially after what we humans have done to the mother earth.
  • Damage was done collectively, revival should also be in the same way – Oh yes, and we all exploit the resources collectively for our reasons. Every country invests millions and billions for its natives in infrastructure, entertainment, health, education etc., but what about our actual owner. Yes, the planet demands a share from our progress, why not use our money to remove illness given by us?
  • Just like the financial issues, we should worry about the weather around us – Definitely, we have enough time to think about our finances, but there are other things to fix. When you worry about a money crisis or a poor credit or how to get car loans for bad credit in the UK, think of the crying nature.

The climate finance is the need of the hour, and we cannot manage to ignore it because it is our survival question. To be more precise, it is about how we will breathe in the future. In fact, we need to think, will we even breathe appropriately in the next few decades. From a long time, the efforts are going on, and a lot of money needs to be invested for the big cause. First, we spoiled something, and now we need to fix it with what we have earned with nature’s help.


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