The United Nations Environment Program has created an entire document detailing various worldwide terms used by governments & businesses across the world. Since green economy & climate finance are novel concepts at a very nascent stage of market maturity, the terms are defined and redefined worldwide every now and then. This blog provides simpler definitions of the important terms of green economy.

Green economics is the study of the environmental impact of human activities from an economic perspective. This helps us understand the carbon footprints of business and personal consumers in terms of their financial impact. It also enables us to compare the efficiencies of various sustainability projects. Green economics encourage free market solutions to climate crises in many cases. 

Climate finance is the study of financial models of environmental impact & funding of sustainability projects. Climate finance is interchangeably used as a synonym with green finance & sustainable finance. However, mostly in public media, it generally refers to grants from industrialised developed countries to developing countries under the United Nations Climate Convention. 

Different types of climate finance instruments other than climate subsidies or grants; climate finance instruments include green bonds, carbon credits, carbon tax, and regenerative finance.