What is Climate Finance?
Provided by: Council on Foreign Relations|Published on: December 13, 2025|Last updated: September 26, 2026
Grades: 11, 12
Type: Articles/Websites
Subjects: Economics
Authors: Council on Foreign Relations
Location: Earth
This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Learn about our review process →
This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Learn about our review process →
Synopsis
- In this article from the Council on Foreign Relations, students will learn what climate finance is and why funding plays a central role in addressing climate change.
- Students will examine how governments, institutions, and private actors support mitigation and adaptation efforts through financial systems and understand that funding needs to increase dramatically to address climate change.
Teaching Materials
Positives
- The article clearly defines climate finance and breaks complex economic concepts into manageable sections.
- Concrete examples help students connect abstract financial systems to real climate action.
Prerequisites
- Students should understand basic economic ideas such as investment, public spending, and incentives.
Differentiation & Implementation
- Teachers can extend this topic into conversations about human rights and environmental justice, using this additional article to draw connections.
- This resource supports connections to SDG 13 (Climate Action) and SDG 17 (Partnerships for the Goals).
- Teachers can challenge older or advanced students to come up with a method to incentivize others to invest in adaptation measures.
This resource focuses on the economics of climate solutions. The article is exceptionally well-sourced, with numerous figures and linked reports from trusted international organizations. Notable is the focus on the private funding gap for climate adaptation projects, an important tool in protecting vulnerable communities. This resource is nuanced in its presentation and is recommended for teaching.
Teaching Tips
Standards
Resource Type and Format
Scientist Reviewed
This resource has been reviewed by SubjectToClimate's climate scientists and verified for scientific accuracy and up-to-date information. Our review process ensures that every resource in our library reflects the current state of climate science.
Learn about our review process →
