Heliyon (Jul 2024)
Newly evidence across the world on how climate financing helps in ensuring a greener future
Abstract
Investing in climate change mitigation and adaptation has become a promising approach to address the negative impacts of climate change on the environment and to encourage efforts to adjust to changing conditions. Climate funding is a kind of foreign aid that seeks to reduce carbon dioxide emissions and promote ecologically sustainable economic development. However, it is not quite clear to what extent it helps recipient countries transition to low-carbon pathways. This research examines the worldwide flow of climate finance from 1999 to 2017 to determine the impact of climate funds on reducing carbon emissions and promoting sustainable development in recipient countries. The data suggest a potential correlation between climate funding and the reduction of carbon emissions, with investments in mitigation seeming to have a greater impact than spending on adaptation. Furthermore, countries that have achieved significant economic progress and Small Island developing states stand to benefit more from climate aid aimed at reducing emissions. This is due to the fact that both sorts of nations exhibit greater rates of economic growth. These results are significant for policymakers, who may use them to accelerate the transition to net-zero combustion levels and enhance environmental sustainability.
