Special Climate Change Fund

Special Climate Change Fund

Summary

The Special Climate Change Fund (SCCF) was established under the United Nations Framework Convention on Climate Change (UNFCCC) in 2001 to address the specific needs of developing countries in adapting to the impacts of climate change and enhancing resilience. The SCCF finances the additional costs (incremental costs) associated with interventions aimed at climate change adaptation, beyond the regular development baseline. While adaptation remains the top priority, the SCCF also supports technology transfer and related capacity-building activities. Administered by the Global Environment Facility (GEF) as a specialised trust fund, the SCCF is designed to catalyse and leverage additional financing from both bilateral and multilateral sources.

Basic Description

Name of the Fund Special Climate Change Fund (SCCF)
Official Fund Website https://www.thegef.org/what-we-do/topics/special-climate-change-fund-sccf
Date Created
Date fund proposed: 2001
Date fund made operational: 2002
Proposed Life of Fund Undetermined.
Objectives The SCCF primarily focuses on supporting adaptation actions in developing countries. While it also funds technology transfer related to adaptation, it does not support mitigation activities. Under the GEF Programming Strategy for July 2022 to June 2026, the SCCF aims to:

  1. Enhance Resilience and Reduce Vulnerability: Through innovation and technology transfer for climate change adaptation
  2. Mainstream Climate Change Adaptation: For systemic impact
  3. Foster Enabling Conditions: For effective and integrated climate change adaptation.
Financial inputs and fund size As of November 2024, the cumulative pledges to the Fund amount to approximately USD 460 million, with USD 422 million delivered to its trust fund.
The contributing countries are: Belgium, Canada, Denmark, Finland, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Slovenia, Spain, Sweden, Switzerland, United Kingdom and United States.
The contributions from donor countries are included as Official Development Assistance.
Activities Supported The SCCF has two active windows: 1. Adaptation and 2. Transfer of technologies.

  1. Adaptation: The SCCF funds adaptation in the following sectors: water resource management, land management, agriculture, health, infrastructure development, fragile ecosystems and integrated coastal zone management. In addition, it supports monitoring of diseases and vectors affected by climate change and builds capacity for disaster prevention.
  2. Transfer of technologies: The SCCF supports the transfer of climate-resilient technology for both mitigation and adaptation. This is associated with assistance given to countries to put climate change technologies to use and apply research, and to implement demonstration and deployment projects. The GEF’s climate change adaptation strategy for the 2022-2026 period focuses SCCF support on two priority areas, namely supporting the adaptation needs of Small Island Developing States (SIDS), and strengthening technology transfer, innovation and private sector engagement.

Administrating Organization

Secretariat or Administrative Unit SCCF is administered by the GEF. The GEF Secretariat is based in Washington D.C. and is led by a Chief Executive Officer (CEO)-Chairperson, who is appointed for a four-year term (renewable once) by the GEF Council. The Secretariat has a staff of approximately 75 professionals and is divided into three administrative units: the Programmes Unit, the Policy, Partnerships, and Operations Unit and the Front Office (http://www.thegef.org/staff).
The GEF Secretariat is responsible for coordinating and overseeing the implementation of GEF programmes, ensuring that policies are effectively executed in collaboration with GEF Agencies. It facilitates interagency meetings to promote effective cooperation among these agencies. Additionally, the Secretariat coordinates with the secretariats of international environmental conventions for which the GEF serves as a financial mechanism, including the Convention on Biological Diversity (CBD), UNFCCC, Stockholm Convention on Persistent Organic Pollutants, United Nations Convention to Combat Desertification (UNCCD), and Minamata Convention on Mercury. It reports directly to the GEF Assembly and Council, implementing their decisions and providing regular progress updates.
Trustee The World Bank is the permanent trustee.

Fund Finance and Access Modalities

Conditions and Eligibility Requirements SCCF is open to all vulnerable developing countries and is therefore not restricted to ODA eligible countries. All Non-Annex 1 countries are eligible to apply, although the needs of the most vulnerable countries in Africa, Asia, and the Small Island Developing States (SIDS) are to be prioritised.
Accessing the Fund
Access Modalities – To be eligible, projects or programmes are to be country-driven, cost-effective and integrated into national sustainable development and poverty-reduction strategies; and also take into account national communications or National Adaptation Programmes of Action (NAPAs), National Adaptation Plans (NAPs) and other relevant studies and planning documents.
Because the requests for SCCF exceed available funding, pre-selection criteria have been agreed:

  • Project or programme quality
  • Balanced distribution of funds in the eligible countries, with an emphasis on vulnerable non-Annex I countries who have not previously had access
  • Equitable regional distribution
  • Balanced support for all priority sectors
  • Balanced distribution among GEF agencies based on comparative advantage.

The 18 GEF Agencies are the only institutions that access GEF funding directly on behalf of a government recipient. To submit project proposals, eligible countries need to work with a GEF Partner Agency. In addition, the SCCF Project Proponent needs to secure the endorsement of a national GEF operational focal point, which will confirm that the project proposals are consistent with national plans and priorities.
Full-sized Projects (FSP, with GEF funding amount of more than USD 2 million) as well s some Medium-sized Projects (MSP, with GEF project financing of less than or equivalent to USD 2 million) must be cleared by the CEO of the GEF before they are formally approved by the SCCF/LDCF Council at which point funding is earmarked for their support.
Projects are only considered to be approved after a Project Identification Form (PIF) that shows that the project meets certain criteria has been produced and then approved by the council. It then needs to be endorsed by the CEO before funding can be said to have been approved (although nearly 100 % of council approved projects are also endorsed by the CEO). Implementing agencies then also have to approve projects through their internal decision making processes. Finance is available for project preparation.
An Enabling Activity (EA), meaning a project for the preparation of a plan, strategy or report to fulfill commitments under a Convention, can also be supported.
Financial Instruments – Grants (as incremental cost finance to address climate change adaptation relative to a development baseline).
Accreditation process – Initially, only UN agencies and multilateral development banks were accredited as GEF Partner Agencies. As part of an effort to broaden the number of GEF implementation partners, 2011 a pilot programme to accredit “up to ten” new agencies was launched. Applicant entities were reviewed in a three-stage process with an independent GEF Accreditation Panel assessing whether they meet the GEF’s fiduciary standards, as well as the GEF’s environmental and social safeguards, including on gender mainstreaming. Of the initial applicants, eight have successfully completed the accreditation process and been added as fully-accredited GEF Partner Agencies. A recent review of the accreditation approach of the GEF confirmed that no further GEF Partner Agency expansion is planned for the foreseeable future.
Overview of implementing entities – The SCCF works through formally accredited GEF Agencies. Among them are UN agencies, multilateral and regional development banks, national government institutions, and international and non-governmental organisations.
The complete list of the 18 GEF Agencies is available at: https://www.thegef.org/partners/gef-agencies
Nature of recipient country involvement – Projects are intended to be nationally owned and country-driven. A project has to be endorsed by the country or countries where it will be implemented to be considered to receive GEF funding.
In addition, all SCCF projects have a GEF Operational Focal Point (OFP) and a GEF Focal Point which work as liaison agencies.

  • The GEF Operational Focal Point is “designated by each country that receives GEF funding, and is responsible for operational aspects of GEF activities such as, endorsing project proposals to affirm that they are consistent with national plans and priorities and facilitating GEF coordination, integration, and consultation at the country level”.
  • The GEF Focal Points (Country Representatives) are “government officials, designated by member countries, responsible for GEF activities and to ensure that GEF projects are country-driven and based on national priorities. The complete list of GEF Focal Points is available at: http://www.thegef.org/focal_points_list
Allocation criteria – The total SCCF contribution for a Medium-Sized Project (MSP) cannot exceed USD 5 million, following the updated threshold adopted at the 66th GEF Council Meeting in 2024. If the SCCF contribution exceeds USD 5 million, the project is considered a Full-Sized Project (FSP).
Full-Sized Projects must undergo a longer and more comprehensive review process, which includes:

  • Submission and approval of a Project Identification Form (PIF) by the SCCF/LDCF Council
  • Followed by endorsement from the GEF CEO
  • And final approval through the implementing agency’s internal decision-making process.

In contrast, Medium-Sized Projects benefit from a streamlined review process, often requiring only CEO endorsement without Council submission, allowing for greater flexibility and faster implementation.
Safeguards, Gender and Indigenous Peoples
Safeguards – The GEF Policy on Environmental and Social Safeguards applies to all GEF-financed projects and programmes, including SCCF. The Policy sets out “mandatory requirements for identifying and addressing Environmental and Social Risks and Impacts in GEF-financed projects and programmes; and for documenting, monitoring and reporting on associated measures throughout the project and programme cycles, and at the portfolio level.” Agencies need to demonstrate that they have in place the necessary policies, procedures, systems and capabilities to meet the minimum standards 1 to 9:

  1. Environmental and Social Assessment, Management and Monitoring;
  2. Accountability, Grievance and Conflict Resolution;
  3. Biodiversity Conservation and the Sustainable Management of Living Natural Resources;
  4. Restrictions on Land Use and Involuntary Resettlement;
  5. Indigenous Peoples;
  6. Cultural Heritage;
  7. Resource Efficiency and Pollution Prevention;
  8. Labour and Working Conditions; and
  9. Community Health, Safety and Security.
Gender – All GEF-financed projects and programmes are subject to the 2017 GEF Policy on Gender Equality and the 2018 Gender Implementation Strategy. The objective of the policy is to establish guiding principles and mandatory requirements for mainstreaming gender across GEF’s governance and operations, with a view to promoting gender equality and the empowerment of women and girls in support of the GEF’s mandate to achieve global environmental benefits.
The policy sets out mandatory requirements in four key areas:

  1. Project and programme cycle: integrating gender considerations throughout identification, design, implementation, and evaluation
  2. Monitoring, learning, and capacity development: ensuring mechanisms to track gender-related outcomes and enhance institutional capacity
  3. Agency policies, procedures, and capabilities: requiring GEF agencies to demonstrate policies, systems, and expertise to support gender equality
  4. Compliance: establishing measures to ensure consistent application of the policy and reporting on gender results.

In addition, the policy requires GEF agencies to meet seven minimum standards that support effective gender mainstreaming across their operations.
Indigenous Peoples – The GEF requires all participants to respect the principles set out in the GEF Policy on Environmental and Social Safeguards. Standard 5 of this policy addresses the rights and interests of Indigenous Peoples. When GEF-financed projects may cause adverse impacts on land and natural resources subject to traditional ownership or use, impact cultural heritage, result in the relocation of Indigenous Peoples, or affect their governance systems, the Free, Prior, and Informed Consent (FPIC) of the affected Indigenous Peoples is required.
Participants must demonstrate that they have the necessary policies, procedures, systems, and capabilities in place to ensure effective engagement with Indigenous Peoples, to provide access to mitigation and compensation where adverse impacts are unavoidable, and to establish appropriate grievance and conflict resolution mechanisms.
In addition, the GEF Principles and Guidelines for Engagement with Indigenous Peoples provide operational guidance to enhance the effectiveness of GEF-financed activities while ensuring the protection of Indigenous Peoples’ rights and the delivery of long-term benefits.
A comprehensive overview of the GEF’s strategy and engagement with Indigenous Peoples is available at: https://www.thegef.org/what-we-do/topics/indigenous-peoples

Fund Governance

Decision Making Structure As a specialised trust fund, the SCCF falls under the governance structure of the GEF. The GEF governance structure is composed of the Assembly, the Council, 18 Agencies and a Scientific and Technical Advisory Panel. Decisions on the SCCF and its sister fund, the Least Developed Climate Fund (LDCF), are made by the GEF Council meeting convening as the LDCF/SCCF Council in separate sessions during GEF Council meetings.
Assembly The Assembly is composed of all 184-member countries or Participants. It is responsible for reviewing general policies, reviewing and evaluating the GEF’s operation based on reports submitted to Council, reviewing the membership of the Facility and considering amendments to the Instrument for the Establishment of the Restructured Global Environment Facility. Council The GEF Council is the governing body for the GEF. The Council is comprised of 14 members from donor constituencies and 18 from recipient constituencies (a total of 32 GEF members) and makes decisions by consensus. The Council adopts and evaluates the operational policies and programmes, and reviews / approves the projects submitted for approval. The list of Council Members and Alternates can be found at: https://www.thegef.org/council_members_alternates Agencies The GEF Agencies work with project proponents to design, develop and implement GEF projects and programmes. The list of GEF Agencies is available at: https://www.thegef.org/partners/gef-agencies
Scientific and Technical Advisory Panel (STAP) The STAP provides scientific and technical advice on policies, operational strategies, programmes and projects. It is composed by six internationally recognised experts who are supported by a global network of experts and institutions.
Accountability Mechanisms Independent Evaluation Office SCCF impact and effectiveness is evaluated by the GEF Independent Evaluation Office (IEO). This office is headed by a Director responsible for coordinating a team of specialised evaluators. The Director is appointed by and reports directly to the Council. Further information can be found on the GEF IEO website.
The last two programme evaluations of the SCCF were completed in 2017 and 2021 by the GEF Independent Evaluation Office. The 2017 evaluation highlighted the following findings:

  1. The SCCF is highly relevant to GEF adaptation objectives and national sustainable development agendas
  2. It has limited relevance to non-adaptation GEF focal areas and global environmental benefits
  3. The SCCF portfolio is likely to deliver tangible adaptation benefits and catalytic effects
  4. Its effectiveness and efficiency have been hindered by limited and unpredictable resources.

The 2021 evaluation reaffirmed these conclusions and noted incremental improvements in project design and results tracking, while emphasising that resource mobilisation remains a core challenge for scaling impact. Complaints Procedures

  • Local or Country-Level Dispute Resolution Systems: Individuals and communities are encouraged to first utilise local or national mechanisms to address grievances related to GEF-funded projects. These systems are often more accessible and can provide culturally appropriate resolutions
  • GEF Partner Agency Mechanisms: Each GEF Partner Agency is required to have its own accountability, grievance, and conflict resolution mechanisms. These mechanisms are designed to respond to complaints from project-affected people and communities, including concerns about potential policy non-compliance. They operate independently of the management and staff involved in project design and implementation, ensuring impartiality
  • GEF Conflict Resolution Commissioner: In addition to the mechanisms provided by Partner Agencies, the GEF has established the role of the Conflict Resolution Commissioner. This Commissioner is available to receive complaints related to GEF-financed projects and programmes, facilitating actions among relevant parties, including complainants, Agencies, recipient countries, and other stakeholders
  • GEF Policy on Environmental and Social Safeguards: The elements of the GEF’s conflict resolution system are outlined in the GEF Policy on Environmental and Social Safeguards. This policy sets forth minimum standards for accountability, grievance, and conflict resolution mechanisms that GEF Partner Agencies must adhere to, ensuring that affected individuals and communities have access to effective avenues for addressing their concerns.
Participation of Observers and Stakeholders GEF presents itself as a country driven organisation that was “founded on the principles of collaboration and partnership”. Member countries are referred as Participants that are represented on the GEF Council by 32 Constituencies each one having a Council Member and an Alternate Council member.
In 2017, the Council approved an updated Policy on Stakeholder Engagement which sets out “the core principles and mandatory requirements for GEF agencies to meaningfully engage stakeholders in GEF programmes and projects to build on a broad base of local knowledge and expertise, and foster local engagement and ownership in support for positive global environment outcomes”. The Policy presents mandatory requirements for stakeholder engagement throughout the GEF project cycle.
Civil Society Organisations (CSOs) are considered key partners for identifying, executing and monitoring GEF programmes and projects. GEF encourages civil society stakeholders to comment on project proposals, comment on policies, support and monitor project implementation, participate in GEF events. In addition, sponsored CSOs can attend the Council Meetings to relay the voices of CSOs from the field and maintain engagement on policy issues. Sponsored CSOs are selected in consultation with the CSO network, Operational Focal Points, the Indigenous Peoples Advisory Group and the GEF Small Grants Program.
Since 1995, CSOs have coordinated input via the GCF CSO Network, representing 600 CSOs from 122 countries, which is supported by the GEF Secretariat administratively.
Indigenous Peoples have their own Advisory Group. This group was established in 2012 to enhance coordination between the GEF and Indigenous Peoples. The Group’s objective is to provide “advice to the GEF Indigenous Peoples Focal Point on the operationalisation and reviewing of the Principles and Guidelines for Engagement with Indigenous Peoples and to provide guidance on financing options for Indigenous Peoples”.
Regarding governance, the Rules of Procedure for the LDCF/SCCF Council allow for observer participation. Specifically, any Council Member may choose to participate in the LDCF/SCCF Council or attend as an observer. This provision facilitates broader involvement in the decision-making processes of the SCCF.
Transparency and Information Disclosure The GEF Policy on Access to Information sets out the principals and mandatory requirements for the public accessibility of Council Information and fully applies to the SCCF.
The Financial Status Report contains the information on the progress of donor contributions and is available with other Council documents (SCCF/LDCF Council Meetings) at: https://www.thegef.org/council-meetings
All active SCCF projects are included in the GEF project listing tool http://www.thegef.org/projects
Other Issues Raised