Climate Action Finance

Definition ∞ Climate Action Finance refers to financial activities and instruments dedicated to supporting projects that address climate change. This includes investments in renewable energy, sustainable infrastructure, and technologies for carbon emission reduction. Its purpose is to mobilize capital towards environmentally beneficial outcomes. It plays a vital role in global environmental efforts.
Context ∞ Digital assets and blockchain technology are increasingly contributing to climate action finance by providing new funding mechanisms and transparency for environmental projects. Discussions often involve tokenized green bonds and verifiable carbon markets. Monitoring the impact and effectiveness of these novel financial instruments is a key area of interest.