Climate finance
Climate finance is one of the forms of support provided by developed countries to developing countries. Together with technology transfer and capacity building, finance is one of the Means of Implementation (MOI). Developing countries participation in mitigation efforts is contingent on MOI. The obligation to provide climate finance under the Convention is limited to parties listed in Annex II to the Convention. Other Annex I parties are not under obligation to provide financial support to developing countries.
In the Paris Agreement, finance forms an important part of the global deal. Developed countries will continue to provide and mobilize finance to support both, mitigation and adaptation in developing countries. Financial flows have to be consistent with a pathway towards low Greenhouse Gas (GHG) emissions and climate-resilient development. Developed countries reaffirmed their resolve to provide urgent and adequate finance (and other means of implementation) to developing countries to enhance the level of pre-2020 ambition and were urged to scale up the level of financial support with a concrete roadmap to achieve the goal of jointly providing USD 100 billion annually by 2020 for both mitigation and adaptation (para. 115 of the decision). On top of that, developed countries intend to continue this existing collective mobilization goal of USD 100 billion annually through 2025. From 2026 this amount is intended to increase from the floor of USD 100 billion per year. The new collective quantified goal should be set by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement by the end of 2025.