More  than  ever  before,  the  world  is  experiencing  a  veracious  climate change. The climate change has adversely affected global economy and ultimately the societies. Governments are reacting to the climate change by directing a big portion of the public finance to mitigation measures. This strategy appears inadequate for a number of reasons. Firstly, it is reactionary and in many cases coming too late; Secondly, public finance is  inadequate  given  the  magnitude  of  the  resulting  climate  related adversity; Thirdly, there appear to be poor condition among the many actors.

The  public  sector  needs  to  realize  that  Climate  changes  have  radically changed the financial and project management arena. Indeed, the focus for both is shifting toward  adaptation to climate change and mitigations of  climate  change  risks.  Well-coordinated  public  sector  finance  has  a major  role  to  play.  Hence  climate  change  financing.  Governments  and other  stakeholders  should  put  emphasis  on  climate  change  financing, focusing  on  adaptation  and  mitigation.  Be  it  as  it  may  be,  the  design and formulation of the climate change finance and the related financing instruments,  comes with related financial and fiscal risks.