This discussion note discusses some of the contentious issues around the Green Climate Fund negotiations and proposes that, in the case of mitigation funding, two separate funding envelopes/streams should be introduced: one dedicated to efficiency and the other to (intra-generational) equity. In the case of adaptation funding, resources should be allocated in proportion to country adaptation funding needs. For example, estimated in terms of the number of people exposed to climate change impacts and the intensity of these impacts (their “vulnerability”). This should be carried out separately with respect to the funding set aside for particularly vulnerable countries, and to the funding for the other countries.