This chapter delves into the crucial role of green finance in enhancing climate resilience in vulnerable regions. Green finance is an essential tool for building climate resilience through capital allocation, policy coordination, and technological innovation, helping them cope with extreme climate events and long-term impacts of climate change. The empirical results also demonstrate green finance’s positive and significant impact on climate resilience in LDCs countries. However, green finance still faces numerous challenges in promoting climate resilience. On one hand, green projects are typically characterised by large investment scales and long payback periods and are significantly affected by the uncertainties of climate change, resulting in higher risks. This has dampened the enthusiasm of some financial institutions with low risk appetites. On the other hand, the green finance market is still imperfect, with issues such as non-uniform standards and non-standardised information disclosure, which affect market transparency and investor confidence. This chapter proposes practical pathways and policy recommendations for adaptive financing to address these challenges.

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

The Role of Green Finance in Building Climate Resilience: Financing Adaptive Solutions for Vulnerable Regions

  • Li Zhengzheng

摘要

This chapter delves into the crucial role of green finance in enhancing climate resilience in vulnerable regions. Green finance is an essential tool for building climate resilience through capital allocation, policy coordination, and technological innovation, helping them cope with extreme climate events and long-term impacts of climate change. The empirical results also demonstrate green finance’s positive and significant impact on climate resilience in LDCs countries. However, green finance still faces numerous challenges in promoting climate resilience. On one hand, green projects are typically characterised by large investment scales and long payback periods and are significantly affected by the uncertainties of climate change, resulting in higher risks. This has dampened the enthusiasm of some financial institutions with low risk appetites. On the other hand, the green finance market is still imperfect, with issues such as non-uniform standards and non-standardised information disclosure, which affect market transparency and investor confidence. This chapter proposes practical pathways and policy recommendations for adaptive financing to address these challenges.