What is Climate Finance?

Provided by: Council on Foreign Relations |Published on: December 13, 2025

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Synopsis

In this article from the Council on Foreign Relations, students will learn what climate finance is and why funding plays a central role in addressing climate change.
Students will examine how governments, institutions, and private actors support mitigation and adaptation efforts through financial systems and understand that funding needs to increase dramatically to address climate change.

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Subjects: Economics

Authors: Council on Foreign Relations

Region: Global

Languages: English

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Teaching Materials

Positives

The article clearly defines climate finance and breaks complex economic concepts into manageable sections.
Concrete examples help students connect abstract financial systems to real climate action.

Prerequisites

Students should understand basic economic ideas such as investment, public spending, and incentives.

Differentiation & Implementation

Teachers can extend this topic into conversations about human rights and environmental justice, using this additional article to draw connections.
This resource supports connections to SDG 13 (Climate Action) and SDG 17 (Partnerships for the Goals).
Teachers can challenge older or advanced students to come up with a method to incentivize others to invest in adaptation measures.

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About the Partner Provider

CFR Education from the Council on Foreign Relations

CFR Education provides accurate, accessible, authoritative resources that build the knowledge, skills, and perspective high school and higher education students need to understand and engage with today’s most pressing global issues.

Scientist Reviewed

This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Our review process ensures that every resource in our library reflects the current state of climate science.

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What is Climate Finance?

Synopsis

Teaching Materials

About the Partner Provider

Scientist Reviewed

Related Teaching Resources