Green Climate Fund (GCF)

The Green Climate Fund (GCF) is the largest multilateral climate finance fund established under the UNFCCC, aimed at helping developing countries undertake climate change mitigation and adaptation measures. 

It is headquartered in Songdo, South Korea, governed by a 24-member Board.

Background and Governance

• Established at COP-16 (Cancun, 2010): The GCF Board was created to govern the fund.

• The World Bank was appointed as the interim trustee.

• A Transitional Committee was set up to design the fund's structure, meeting throughout 2011.

• At COP-17 (Durban, 2011), it was decided that the GCF would be an operating entity of the UNFCCC’s financial mechanism.

• At COP-18 (Doha, 2012), rules were adopted ensuring that GCF is accountable to and functions under the guidance of the COP.

Without this governance agreement, COP-17 would have been deemed a failure, especially since it was branded the "African COP" by negotiators.

Structure and Partnerships

• The GCF Board was tasked with:

  • Developing disbursement procedures aligned with national priorities.

  • Establishing an independent Secretariat and a permanent trustee.

• The fund collaborates with 84 accredited partners, including:

  • Commercial and development banks

  • State agencies

  • Civil society organizations

These partners help design and implement innovative, country-driven climate projects.

Comparison with Other UNFCCC Climate Funds

• The five key multilateral climate funds under the UNFCCC are:

  1. Green Climate Fund (GCF) – Largest

  2. Adaptation Fund (AF)

  3. Least Developed Countries Fund (LDCF)

  4. Special Climate Change Fund (SCCF)

  5. Global Environment Facility (GEF)

Challenges Faced

• Fundraising mechanisms remain unclear and insufficient

• Ensuring transparency and country ownership

• Managing private sector involvement

• Preventing fragmentation of climate finance efforts