The Green Climate Fund (GCF), established in 2010, is part of the financial mechanism of the UN Framework Convention on Climate Change (UNFCCC) and serves in the same function for the Paris Agreement. It aims to make an ambitious contribution for the implementation of the Paris Agreement and its mitigation and adaptation goals by supporting the paradigm shift in developing countries towards low-carbon and climate-resilient development pathways. The GCF is currently the world’s largest dedicated multilateral climate fund and the main multilateral financing mechanism to support developing countries in achieving a reduction of their greenhouse gas emissions and an enhancement of their ability to respond to climate change.
|Name of the Fund||Green Climate Fund (GCF)|
|Official Fund Website||http://www.greenclimate.fund|
|Proposed Life of Fund||The termination of the Fund is not set but would be required to be approved by the COP based on a recommendation of the Board.|
|Objectives||The GCF contributes to the achievement of the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC).
In the context of sustainable development, the Fund seeks to promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, taking into account the needs of those developing countries particularly vulnerable to the adverse effects of climate change.
The Fund strives to maximise the impact of its funding for adaptation and mitigation, and seek a balance between the two, while promoting environmental, social, economic and development co-benefits and taking a gender-sensitive approach.
|Financial inputs and fund size||During the Initial Resource Mobilisation (IRM) period, the cumulative pledged funding amounts to approximately USD 10.3 billion. A total of 45 countries, 3 regions and 1 city have contributed to this pledge.
As of October 2020, the cumulative pledges for GCF’s First Replenishment (GCF-1) period amount to approximately USD 10 billion. A total of 30 countries and 1 region have contributed to this replenishment.
The complete list of contributors for GCF IRM and GCF-1 is reported in the annual Status of Pledges and Contributions.
Financial inputs to the GCF Trust Fund are received in the form of grants, loans or capital contributions.
The contributions are eligible to be classified as official development assistance (ODA).
|Activities Supported||The GCF finances activities to both enable and support adaptation, mitigation (including REDD+), technology development and transfer, capacity-building and the preparation of national reports.
Countries are also supported in the pursuit of project-based and programmatic approaches in accordance with strategies and plans (such as low-emission development strategies, Nationally Appropriate Mitigation Actions, National Adaptation Programmes of Action, National Adaptation Plans and others).
The GCF’s main impact areas are:
|Secretariat or Administrative Unit||The GCF is a legally independent institution with a fully independent secretariat headed by an Executive Secretary. The Secretariat, located in Songdo South Korea, began its work in December 2013. The Secretariat is composed of around 220 staff members and a number of consultants regularly support the staff.
The Secretariat is in charge of executing the day-to-day operations of the Fund and is accountable to the Board. It is divided into several divisions and offices that report to the Office of Executive Director. The Divisions and Offices comprise:
An organigram overview of the GCF is available at: https://www.greenclimate.fund/sites
|Trustee||The World Bank served as the interim trustee of the GCF until 2018, when a GCF Board decision confirmed the World Bank as the GCF Trustee for a renewable four-year period (2019-2023).|
Fund Finance and Access Modalities
|Conditions and Eligibility Requirements||All developing country Parties to the UNFCCC are eligible to receive resources from the GCF. Being an ODA-eligible country is not set out as a mandatory requirement to access the Fund.
The GCF aims for a balanced allocation between mitigation and adaptation in grant equivalent terms, with a floor of 50% of the adaptation allocation ring-fenced for particularly vulnerable countries, namely Least Developed Countries (LDCs), Small Developing Island States (SIDS) and African countries.
|Accessing the Fund||
|Safeguards, Gender and Indigenous Peoples||
|Decision Making Structure||European Commission – The Fund functions under the guidance of and is accountable to the UNFCCC Conference of Parties (COP). The Board is charged with the governance and oversight of the Fund’s management and ensures the accountability to the COP by (a) receiving guidance from the COP (matters related to policies, programme priorities and eligibility criteria), (b) taking appropriate action in response to the guidance received and (c) submitting annual reports to the COP for its consideration and receive further guidance.
The Board meets three times a year and decisions are made generally by consensus (with voting possible for project/programme proposals when no consensus can be achieved). Members of the Board serves a three-year term and two Co-Chairs of the Board are elected by Board members to serve a period of one-year, with one from a developing country Party and one from a developed country Party.
The list of current Board members is available at: https://www.greenclimate.fund/boardroom
Independent Technical Advisory Panel (ITAP)
|Accountability Mechanisms||GCF Accredited Entities are in charge of monitoring and evaluating the projects/programmes they implement and of reporting their activities to GCF through an annual self-assessment report. In addition, GCF reviews the accreditation of a given entity mid-term through its five year accreditation period and at the end of its accreditation period and measures the performance of project implementation based on regular reporting by the accredited entity against the Fund’s results areas and Results Management Framework. All GCF assessments follow the Fund’s Monitoring and Accountability Framework for adaptation and mitigation, which highlights an oversight role for NDAs and local stakeholders through participatory monitoring approaches.
The GCF has also established several mechanisms to ensure accountability and to evaluate the performance of its activities, in order to “ensure the application of safeguards as well as internationally accepted standards”.
|Participation of Observers and Stakeholders||Stakeholders are defined in the GCF Governing Instrument as private sector actors, civil society organisations, vulnerable groups, women and Indigenous Peoples.
The GCF Board is mandated to grant accredited observers access to its meetings. International organisations, private sector organisations and civil society organisations can become accredited observer organisations to the GCF; they also have to register to observe each Board meeting.
Four observers are able to participate in Board meetings as active observers and speak on behalf of their constituencies, although they will not be able to vote: two representatives from accredited civil society organisations (one each from developed and developing countries) and two from accredited private sector organisations (also one each from developed and developing countries).
The list of current observers is available at: https://www.greenclimate.fund/about/partners/observers
The Board’s Guidelines relating to the observer participation, accreditation of observer organisations and participation of active observers provides detailed information related to observer participation and the accreditation of observer organisations as well as the selection and participation of active observers.
|Transparency and Information Disclosure||The GCF information disclosure policy outlines the information that is made available to the public either as a routine matter or upon request. The policy is available at: https://www.greenclimate.fund/document/information-disclosure-policy
GCF Board meetings are streamed live and video recordings for recent Board meeting are available at: https://www.greenclimate.fund/boardroom/meetings
In addition, most Board documents (with few exceptions) are made publicly available three weeks before Board meetings and can be found at: https://www.greenclimate.fund/boardroom/documents
The combined pledges and contributions made to the Fund are reported and frequently updated in the Status of Pledges and Contributions available on GCF website.
Details about individual funded projects are available in the Project portfolio.
|Other Issues Raised||The GCF, its operational procedures, processes, policies and decisions are described in further detail in a dedicated briefing (CFF11) as part of the Climate Finance Fundamentals Series (available in English, French and Spanish).|