Climate change is the defining challenge of this time. The human impact on the planet is unprecedented. Long-term changes in the earth’s climate system are significant. The Green Climate Fund was established with a mission to advance the goal of keeping the temperature increase on the home planet below 2 degrees Celsius.
The Fund is a unique global initiative to respond to climate change by investing into low-emission and climate-resilient development. GCF was established by 194 governments to limit or reduce greenhouse gas emissions in developing countries, and to help adapt vulnerable societies to the unavoidable impacts of climate change. Given the urgency and seriousness of the challenge, the Fund is mandated to make an ambitious contribution to the united global response to climate change.
The GCF mission is to expand collective human action to respond to climate change.
The Fund aims to mobilize funding at scale to invest in low-emission and climate-resilient development on the home planet.
Created by the United Nations Framework Convention on Climate Change (UNFCCC), the Fund aims to support a paradigm shift in the global response to climate change. It allocates its resources to low-emission and climate-resilient projects and programmes in developing countries. The Fund pays particular attention to the needs of societies that are highly vulnerable to the effects of climate change, in particular Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.
The Green Climate Fund was established by 194 countries party to the UN Framework Convention on Climate Change in 2010. It is designed as an operating entity of the Convention’s financial mechanism and is headquartered in the Republic of Korea. It is governed by a 24 Board member Board, representing countries, and receives guidance from the Conference of the Parties to the Convention (COP).
- Initial resource mobilization has raised more than USD 10 billion and is ongoing.
- Commitment to aim for 50:50 balance between mitigation and adaptation investments over time.
- At least 50% of adaptation funding goes to the most vulnerable countries, including LDCs, SIDS, and African States.
- Direct private sector engagement in transformational climate-sensitive investments through the Private Sector Facility (PSF).
- Risk-bearing capacity, allowing the Fund to support innovation and leverage and crowd in additional financing.
- Variety of financial instruments available, including grants, concessional loans, subordinated debt, equity, and guarantees, giving flexibility to match project needs.
- Balanced governance structure that ensures consensus-based decisions between 12 developed and 12 developing countries.
Where is Green Climate Fund (GCF)