Conception

This chapter lays the conceptual foundation for understanding climate finance as a distinct yet interrelated domain in relation to sustainable finance and green finance. Beginning with the definitional ambiguity and practical urgency surrounding climate finance, it introduces a taxonomy that distinguishes climate finance from green and sustainable finance based on scope, policy frameworks, and financial instruments. The chapter then elaborates on the normative and functional importance of climate finance in the global net-zero transition, examining its role in addressing public goods provision, correcting market failures, and aligning financial flows with the objectives of the Paris Agreement. It concludes by outlining the structure of the book, which moves from conceptual frameworks to empirical analyses of green bonds, blue finance, and carbon markets. The chapter positions climate finance not only as a technical domain but as a pivotal strategy for addressing climate change through systemic financial transformation.