Climate finance has become central to global climate governance; yet persistent gaps in scale, allocation, and accessibility remain. This article argues that these shortcomings reflect a structural tension between justice and effectiveness within climate finance law. While public international law emphasises equity, solidarity, and differentiated responsibilities, financial flows are increasingly governed by market-based principles of risk, return, and creditworthiness. This interaction produces a fragmented and multilayered system that mobilises capital at scale, but systematically favours mitigation over adaptation, commercially viable projects over vulnerability-driven needs, and creditworthy jurisdictions over those most exposed to climate risks. Examining developments such as blended finance, sustainable finance standards, and loss and damage mechanisms, the article conceptualizes climate finance law as a form of hybrid governance shaped by both public and private actors. It concludes that bridging the gap between justice and effectiveness requires legal and institutional reforms to enhance coherence, enforceability, and equitable access to finance.
