According to the UN Framework Convention on Climate Change (UNFCCC), “climate finance” refers to local, national or transnational financing – drawn from public, private and alternative sources of financing – that seeks to support mitigation and adaptation actions that will address climate change. Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions; and is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate. Unfortunately, at the moment, only 5% of current climate finance targets adaptation. Two of the major climate funds are the Global Environmental Facility (GEF, created in 1994) and the Green Climate Fund (GCF, created in 2010) operated by the UNFCCC’s Conference of Parties (COP). Both funds serve the implementation of the Paris Agreement (2015).