Research that links finance to the environment has become more popular now than twenty years ago. This is because corporate organisations have shifted their attention from the economic returns to a more sustainable method which will ensure that in fulfilling their economic objective of profit maximisation, they do not harm the environment. This chapter examines the distinctions between environmental finance and climate finance. Although environmental finance and climate finance are terms loosely used in the literature to mean the same thing, they are distinct. The chapter specifically discusses environmental finance and its importance, climate finance, and climate finance strategies and development. It also looks at carbon finance, carbon finance and climate change, carbon finance and sustainable development, and the carbon market.
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