Green Climate Fund

Average global temperature is currently estimated to be 1.1°C above pre-industrial times. Based on current trends, the world could cross the 1.5°C threshold within the next two decades and 2°C threshold early during the second half of the century. Limiting global warming to 1.5°C is still a overarching goal and will be determined by the investment decisions we make over the next decade.

The Green Climate Fund (GCF)- a critical element of the historic Paris Agreement- is the world’s largest climate fund, mandated to support developing countries raise and realize their Nationally Determined Contributions (NDC) ambitions towards low-emissions, climate-resilient pathways.

About GCF

GCF was established under the Cancún Agreements in 2010 as a dedicated financing entity for developing countries within the UNFCCC framework.
It serves as the Financial Mechanism of the UNFCCC and the Paris Agreement.
It is headquartered in the Songdo district in South Korea.
The Fund is governed by the GCF Board (which consists of equal number of members from both developing and developed countries) and it is accountable to and functions under the guidance of the Conference Of Parties to UNFCCC (COP).
GCF Board makes rules and procedures for the disbursement of funds, ensuring that these should be consistent with the national objectives of the countries where projects and programmes will be taking place.
The World Bank was invited by the COP to serve as the interim trustee of the GCF until a permanent Trustee is appointed.

Objective of GCF

To support projects, programmes, policies and other activities in developing country Parties using thematic funding windows.

How GCF help Limit Global Warming

It strives to achieve the goal of limiting global warming by investing across four transitions:

built environment;
energy & industry;
human security, livelihoods and wellbeing; and
land-use, forests and ecosystems

It employs a four-pronged approach for achieving the goal by:

Promoting transformational planning and programming to maximise the co-benefits between mitigation, adaptation and sustainable development.
Investing in new technologies
De-risking investment to mobilize finance at scale for adaptation, nature-based solutions, least developed countries (LDCs) and small island developing states (SIDS).
Mainstreaming climate risks and opportunities into investment decision

Practice Prelims Question

Which of the following statements is/are correct regarding Green Climate Fund (GCF)

Green Climate Fund is to provide finance to developing countries for both mitigation and adaptation measures.
World Bank acts as interim Trustee of the GCF

Choose the correct answer using the codes given below.

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:(c)

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