Climate Finance

Definition ∞ Climate finance involves financial resources directed towards activities that address climate change, including mitigation and adaptation efforts. This encompasses investments in renewable energy, sustainable agriculture, and carbon capture technologies. It aims to facilitate the transition to a low-carbon economy and build resilience against climate impacts. Digital assets and blockchain are increasingly explored for tracking and verifying these financial flows.
Context ∞ The allocation and transparency of climate finance are central to international climate agreements and national sustainability strategies. There is growing interest in how blockchain technology can improve the accountability and efficiency of climate-related investments. Discussions frequently involve the role of carbon credits and other tokenized environmental assets in these financial mechanisms.