This chapter investigates how emerging financial instruments are reshaping sustainable infrastructure finance in response to the challenges posed by climate change. The purpose is to evaluate the effectiveness of innovative financing mechanisms in mobilizing capital for climate-resilient and inclusive infrastructure. Drawing on a comprehensive review of academic literature, policy documents, and recent financial innovations, the study examines tools such as green bonds, sustainability-linked loans, infrastructure investment trusts (InvITs), and fintech-enabled crowdfunding. The analysis focuses on their ability to address financing gaps, reduce investment risks, and enhance long-term environmental and social resilience. Findings indicate that while these instruments show strong potential for transforming infrastructure finance, their success depends on robust regulatory frameworks, effective risk-sharing mechanisms, and alignment with climate goals. The chapter highlights the need for integrated governance, institutional capacity building, and blended finance strategies to maximize impact. It concludes that financial innovation, when guided by sustainability principles and climate policy coherence, can serve as a catalyst for inclusive and resilient infrastructure development. These insights offer practical implications for policymakers, investors, and development institutions seeking to align infrastructure finance with climate change mitigation and adaptation objectives.