The climate finance market has experienced rapid growth over the past decade, drawing significant interest from various sectors but is impeded by inefficiency and transparency issues. To address these challenges, major financial institutions like the World Bank, BIS, and J.P. Morgan are adopting blockchain technology to enhance transparency, verification, and scalability, particularly in the carbon markets. Climate finance involves funding mechanisms supporting climate change mitigation and adaptation, with a current annual investment of $630 billion, though the IMF estimates a need for $3 trillion annually, increasing to $6 trillion by 2050. Private markets are making substantial commitments, exemplified by a $5.5 trillion investment from four banks. However, the market faces challenges such as project credibility, lack of urgency, and liquidity issues. Blockchain offers solutions through tokenization, transparency, and automated processes, with initiatives like Project Genesis and the Climate Action Data Trust enhancing carbon market integrity. The adoption of blockchain is seen as crucial for scaling climate finance, mitigating greenwashing, and facilitating innovative solutions in carbon trading and green financing.