The Green Climate Fund (GCF) is the single most important multilateral instrument of international climate finance. It is aimed at supporting climate-related projects in development and emerging countries and promoting a low-emission and climate-resilient development.
The Green Climate Fund was established at the Climate Conference in Cancun in 2010 by 194 participating countries. The Fund, with its headquarters in Songdo, South Korea, provides grants and loans for mitigation and adaptation projects in developing and emerging countries. A focus is placed on the support of least developed countries (LDCs), small island developing states (SIDS) and African countries. Implementation of the fund takes place via international implementing agencies and domestic institutions in the developing countries in an effort to leverage local capacities and allow for independent domestic project implementation. In fulfilment of its guiding principle to promote a transition towards a low-emission and climate-resilient development, the fund provides the unique opportunity to support particularly innovative projects and programmes that are implemented at a large scale and serve as a model.
The initial mobilisation of resources for the fund in 2014 generated a total of 10.3 billion US Dollar. With an amount of 750 million euros, Germany is one of the main donors. Today the fund’s financial resources are already insufficient to cover all project proposals. In 2018 this led to the launching of a process to replenish the Green Climate Fund.
The Board of the Green Climate Fund is the responsible managing body. It consists of 24 members, twelve from industrialised countries and twelve from developing countries. The Federal Ministry for Economic Cooperation and Development and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety have joint responsibility for the fund on behalf of the Federal Government.
What form does a GCF-funded project take?
Grenada, for instance, is highly dependent on water from surface run-off and rain water. Climate change exacerbates its scarcity. The Climate Resilient Water Sector Project, which comes under the heading of adaptation to climate change, receives 40 million USD in GCF support out of a total volume of 47.8 million US Dollar. The project helps to use water in a more efficient and climate-friendly way in the agricultural and tourism sector. Storage and collection systems are also built as part of the project.