With the changing climate taking its toll on the planet and affecting every sector possible, from environmental deterioration to health hazards to resources depletion to infrastructural damage, it has become the need of the present to go for mitigation measures to prevent the emissions of green house gases which is the main culprit of climate change and to go for adaption to adjust to the change in climates and make communities across the world more resilient to the problems arising from the changing climate. No doubt the whole process requires a lot of investment from government, non government and the private sectors and The Green Climate Fund (GCF) is a fund established within the framework of the UNFCCC for the very purpose, to assist developing countries in these adaptation and mitigation practices. The objective of the Green Climate Fund is to “support projects, programmes, policies and other activities in developing country Parties using thematic funding windows” According to UNFCCC, “The Fund is governed by the GCF Bo ard and it is accountable to and functions under the guidance of the COP to support projects, programmes, policies and other activities in developing country Parties using thematic funding windows.” The GCF was established by the COP at its sixteenth session by decision 1/CP.16, and is intended to be the main fund for global climate change finance in the context of mobilizing USD 100 billion by 2020.
There various Green Climate Funds Projects in various countries. GCF-EBRD Kazakhstan Renewables Framework in Kazakhstan, Renewable Energy Program #1 – Solar in Mongolia, Egypt Renewable Energy Financing Framework in Egypt, Geeref Next in multiple countries, Accelerating the Transformational Shift to a Low-Carbon Economy in the Republic of Mauritius in Mauritius, Catalyzing private investment in sustainable energy in Argentina – Part 1 in Argentina, SCF Capital Solutions in South Africa, Business loan programme for GHG emissions reduction in Mongolia, Universal Green Energy Access Programme in 5 countries of Africa, Sustainable Energy Facility for the Eastern Caribbean in 5 countries of Latin America, Climate Action and Solar Energy Development Programme in the Tarapacá Region in Chile, Bhutan for Life in Bhutan, Ground Water Recharge and Solar Micro Irrigation to Ensure Food Security and Enhance Resilience in Vulnerable Tribal Areas of Odisha in India, Tajikistan: Scaling Up Hydropower Sector Climate Resilience in Tajikistan, Pacific Islands Renewable Energy Investment Program in Cook Islands, Sustainable Landscapes in Eastern Madagascar, GCF-EBRD Sustainable Energy Financing Facilities in 10 Countries of Africa, Asia and Eastern Europe, and KawiSafi Ventures Fund in East Africa in Rwanda and Kenya.
The GCF seeks to have an impact within eight mitigation and adaptation results areas identified by the Fund’s Board. The mitigation areas are energy generation and access, transport, forests and land use, buildings, cities, industries and appliances and the adaptation areas are health, food and water security, livelihoods of people and communities, infrastructure and built environment and ecosystems and ecosystem services. The cross cutting investment priorities that are expected to aid in the mitigation and adaptation areas are transforming energy generation and access, creating climate-compatible cities, encouraging low-emission and climate-resilient agriculture, scaling up finance for forests and climate change and enhancing resilience in Small Island Developing States (SIDS).
As the GCFs acts as central fund for the mitigation and adaptation of climate change, developing nations who are parties to the convention are eligible to receive the GCF. The fund can be accessed through implementing entities, accredited international and regional entities. Enhanced Direct Access allows the accredited institutions to design and implement their own program whereas other models allow finance to be accessible only through projects approved by the GCF board. The entities develop of fund proposals and the management and monitoring of projects and programs. Entities are selected on the basis of capacities in driving climate action. According to GCF 101, GCF has introduced a “fit-for-purpose” system to scale them differently according to their capacities and how they address the climate finance needs of different countries and while the scopes of accreditation vary, all entities need to meet a number of basic standards which are based on basic fiduciary standards, environmental and social safeguards and gender consideration.
Despite the highly competitive procedure of selecting the entities, some controversies have arised. For instance, the HSBC has provided nearly US$5.4 billion in financing for coal since 2010 and has still managed to clear the accreditation process, while the Ethiopian Ministry of Finance was relegated because it lacked a demonstrable track record, according to IIED.