What is Climate Finance?

Climate finance refers to local, national or transnational financing, which may be drawn from public, private or alternative sources, and is targeted to implement climate change adaptation or mitigation actions. It is an integral part of the Means of Implementation (MoI) for climate action, since it facilitates technology access, capacity building as well as enabling actions. Climate finance is critical to addressing climate change and its impacts since large-scale investments are required to build resilience as well as to significantly reduce emissions, notably in sectors that emit large quantities of greenhouse gases.