Climate Finance as the term suggests is the money required to tackle or stop the ongoing 'Climate crisis'. The steps required to deal with the crisis are called 'Climate Action' & these actions require finances. Thus, the term 'Climate Finance'.

In Rio de Janeiro at the Earth Summit, June 1992, when the United Nations Framework Convention on Climate Change (UNFCCC) was drafted, the term 'climate finance' came up for the first time.

In 2009, it was decided that 100 billion dollars would be paid every year till 2020 by the developed world to the developing countries. At COP21 in Paris, under the Paris Agreement, it was decided that this payment would be extended till 2025 and the amount would be revised after that.

Developed countries are called 'Historical polluters' since they did more than their fair share of polluting the environment throughout history. Whereas developing nations have not played such a major role in causing the climate crisis.

The developed nations since the industrial pollution became the developed economies that they are today by costing earth its environment whilst the developing countries have been on the receiving end of the impacts of the catastrophic crisis without contributing much to it & with lacking the resources to deal with it.

Climate action is dependent upon climate finance, the money required to combat the crisis is a giant sum. 6 trillion dollars are required by 2030 to deal with the crisis & the developed nations have failed in gathering & paying this amount and the developing countries due to the lack of finances have been unable to take action against this catastrophe.