📄 Abstract
The future of climate finance involves massive scaling of blended finance, leveraging public funds for private investment, strong regulatory frameworks (like green taxonomies), innovative tech (FinTech, blockchain), and a focus on climate justice for developing nations, aiming to bridge the vast gap between current flows (around $2 trillion in 2024) and the estimated $9-$10 trillion needed annually by 2030-2050 for a 1.5°C path. Key shifts include integrating climate finance with development goals, pricing carbon, and prioritizing nature-based solutions, energy, and transport sectors. Climate financethe flow of capital toward activities that mitigate or adapt to climate changeis entering a transformative new era. What began as a niche segment of environmental policy is now becoming a core pillar of global economic strategy. As climate risks intensify and the transition to a low-carbon economy accelerates, the financial system is being reshaped by new technologies, regulations, and investment priorities. In the coming decades, climate finance will no longer be limited to government grants or corporate sustainability initiatives. Instead, it will rely on sophisticated financial instruments, digital innovations, and global market mechanisms designed to mobilize trillions of dollars. From green bonds and carbon markets to AI-driven risk modeling and climate-aligned banking rules, the future of climate finance involves embedding climate considerations into every investment decision.
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📚 How to Cite:
Mr. Galla Abhinav, Dr. R S Ch Murthy Chodisetty , FUTURE OF CLIMATE FINANCE: TOWARDS A NET-ZERO GLOBAL FINANCIAL SYSTEM- AN EMPIRICAL EVIDENCE , Volume 13 , Issue 12, December 2025, International Journal of Asian Economic Light (JAEL) ,