Climate finance, green finance and sustainable finance are routinely used interchangeably. What each term actually covers, and how the three relate.
In recent years, growing consensus has emerged that capital needs to shift from the premise of ‘do no harm’ to ‘create positive impact’. This has helped to build momentum for financing of more green and sustainable activities.
Amid the rapid expansion of sustainable finance, this and the related terms of ‘climate finance’ and ‘green finance’ are often conflated. While there is no universal consensus on a definition for these terms, this brief explains the relationship between these concepts.
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