THE IMPACT OF CLIMATE FINANCE AND ITS SOURCES IN THE DEVELOPED AND DEVELOPING COUNTRIES

AUTHOR – KEERTHANA.S* & DR. S. MARUTHAVIJAYAN**

* STUDENT AT SCHOOL OF EXCELLENCE IN LAW, THE TAMILNADU DR.AMBEDKAR LAW UNIVERSITY

** ASSISTANT PROFESSOR, SCHOOL OF EXCELLENCE IN LAW, THE TAMILNADU DR.AMBEDKAR LAW UNIVERSITY, CHENNAI

BEST CITATION – KEERTHANA.S & DR. S. MARUTHAVIJAYAN, THE IMPACT OF CLIMATE FINANCE AND ITS SOURCES IN THE DEVELOPED AND DEVELOPING COUNTRIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 148-160, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT:

Climate finance refers to the financial resources allocated to support global efforts aimed at mitigating the effects of climate change and adapting to its impacts. As the world grapples with the growing threat of climate change, climate finance has emerged as a crucial mechanism to support countries, businesses, and communities in transitioning to a lowcarbon, sustainable future. This research explores the key aspects of climate finance, examining the flow of capital from public and private sources, the role of international agreements such as the Paris Agreement, and the mechanisms available to finance climate action, including green bonds, climate funds, and investment in clean technologies. The study investigates the challenges and opportunities in climate finance, such as the gap between the financial needs of developing countries and the resources available to meet them, as well as the integration of climate-related risks into financial decision-making. A key focus is on the growing significance of private sector involvement in financing climate initiatives and the integration of Environmental, Social, and Governance (ESG) criteria into investment strategies. Additionally, the research highlights the importance of climate adaptation financing, particularly for vulnerable regions facing severe environmental impacts such as rising sea levels, extreme weather events, and droughts. By exploring global efforts and national strategies to mobilize climate finance, the research aims to provide insights into how financing mechanisms can be optimized to accelerate climate action, foster sustainable development, and enhance resilience to climate change impacts. And the addresses of the climate finance of this year (cop 29). 

KEY WORDS: climate finance, flow of capitals, Paris agreement, investment-funds,