Abstract
An effective response to climate change that assures a sustainable development pathway will require a fundamental transformation towards a low carbon, climate-resilient societies. Each change need for solid financial support, financial solutions, and dedicated instruments, taking into account ESG factors and taking into account the impact of financial crises. This chapter aims to bring together theories, trends, dilemmas, and directional concepts to answer the question about changes in the existing paradigm of climate finance. On the other hand, the analysis of trends and presenting future prospects regarding sustainable finance will be aimed at enhancing the substantive and practical knowledge of the target audience. In addition, in this chapter, the following issues will be presented in particular: changes in the sustainable finance paradigm and the emergence of the climate finance paradigm, macro-and micro-financial aspects of climate change taking into account the influence of risk (including ESG risk), and a new landscape of climate finance.
TopThe Impact Of Sustainable Development On Shifts In The Financial Paradigm
Provide from the key definition of sustainable development that appeared in the 1987 Brundtland Report (Brundtland 1987), there have been changes in the perception and development of the sustainable development paradigm (Moffatt, 2000; Steurer et al., 2005). One issue remains unchanged, because sustainable development is considered as a phenomenon that raises and restores the quality of life and the natural environment, thus progressing without destroying the livelihood of future generations (Witt, 2014). According to the classical approach, it is necessary to ensure that the three dimensions are in balance: economic sustainability, environmental sustainability and social sustainability (Muñoz et al., 2013), which means that the modern economy and its financing should be economically profitable, but also socially and environmentally and socially responsible (Anand & Sen, 2000; Guinot, 2020).
Key Terms in this Chapter
ESG Risks: Environmental, social, and governance risks.
ESG Factors: Environmental, social, and governance factors.
PPP: Private public partnership.
GCF: Green Climate Fund.
GDP: Gross domestic product.
WHO: The World Health Organisation.
TCFD: Climate-related financial disclosures.
CSR: Corporate social responsibility.
SDGs: The Sustainable Development Goals.
LCT: Language and communication technologies (human language technologies).