The Green Climate Fund (GCF) foresees to mobilize large amounts of resources aiming at supporting climate change mitigation and adaptation activities at international level.

Until April 30, the GCF had been able to collect a total 4 billion dollars in contributions, which represents 42% of the amount pledged during the first contributor conference, which took place in Berlin in November 2014, reported a press release.

The GCF is authorized to start allocating resources once 50% of the total pledged in Berlin is made available, that is, 4.7 billion dollars. Besides, April 30 this year had been set as the deadline to reach this amount through the corresponding subscriptions so that the Fund could start providing resources for climate resilience projects in developing countries before the 21 Conference of the Parties to the UN Framework Convention on Climate Change (COP21) in Paris.

“The Green Climate Fund thanks all governments which have been able to conclude their contribution agreements in time. Now we ask all the other governments to urgently conclude their agreements to make sure the Fund is able to facilitate resources as it had been foreseen,” alerted Héla Cheikhrouhou, the Fund’s Executive Director.

To date, total or partial contributions by the following countries have been signed: Austria, Belgium, Chile, Check Republic, Denmark, France, Germany, Iceland, Latvia, Liechtenstein, Luxembourg, the Netherlands, New Zealand, Norway, Panama, Poland, Sweden, Switzerland and the United Kingdom (check the information here).

“The Green Fund is a key indicator of the new resources for climate funding, making them visible and open to monitoring. It is a test of compliance by governments with the vision that took to Fund establishment as a vehicle for financing climate under the UNFCCC,” said Cheikhrouhou.

“Climate financing and the Green Climate Fund are decisive components of the Paris universal climate agreement,” stressed Ms. Cheikhrouhou, adding that “the Fund’s success is an incentive to the Paris agreement results,” pointed out the Executive Director.

About the Green Climate Fund

One of the most relevant tools to fight against climate change in developing countries is the Green Climate Fund (GCF), a multilateral financing mechanism adopted by the UN Framework Convention on Climate Change (UNFCCC) at the end of 2011.

How does the Green Fund work for the world?

The GCF will offer support to developing countries, taking into account their national priorities for a paradigm change towards a low carbon and climate resilient development.

Resources will be equitably assigned to adaptation and mitigation initiatives in connection to climate change. Resources will be allocated through concessional loans and/or donations.

So that countries may access and manage these financial resources they shall, in principle, establish a National Designated Agency (NDA) in charge of recommending programs and projects to be financed to the Fund’s Board of Directors, according to national priorities and strategies.

Receiving countries may appoint subnational and regional entities through their NDAs that will be charged with implementing approved projects and programs.

Taking into account the workload it means for the countries, the Fund has established a program to fund their financial readiness, offering support to countries to identify their NDA, implementing entities, and development of a potential project portfolio.

Source: COP20 website.