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Current Affairs 2023
The Green Climate Fund (GCF) 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 through a range of financing instruments and partnerships with over 200 Accredited Entities.
Apr 03, 2023
3 min read
The Green Climate Fund (GCF) operates through a network of over 200 Accredited Entities and delivery partners who work directly with developing countries for project design and implementation. These partners include international and national commercial banks, multilateral, regional and national development finance institutions, equity funds institutions, United Nations agencies, and civil society organizations. The GCF also employs a country-driven approach, which means that developing countries lead GCF programming and implementation, with country ownership of GCF financing decisions enabling developing countries to turn their Nationally Determined Contributions (NDC) ambitions into climate action. The GCF's open partnership model enables the fund to foster unprecedented coalitions between private investors, development agencies, and civil society organizations to achieve transformative change and support harmonization of standards and practices.
The Green Climate Fund (GCF) is an important player in the global fight against climate change. With a mission to support developing countries in achieving their low-emissions, climate-resilient goals, the GCF operates across four key areas: built environment, energy & industry, human security, livelihoods and wellbeing, and land-use, forests and ecosystems. Through transformative planning and programming, catalysing climate innovation, de-risking investment to mobilise finance at scale, and mainstreaming climate risks and opportunities into investment decision-making, the GCF seeks to maximise the co-benefits between mitigation, adaptation, and sustainable development.
At the heart of the GCF's approach is a country-driven principle that empowers developing countries to lead GCF programming and implementation. The GCF works through a network of over 200 Accredited Entities and delivery partners, including international and national commercial banks, multilateral, regional, and national development finance institutions, equity funds institutions, United Nations agencies, and civil society organisations.
The GCF also employs a range of financing instruments, including grants, concessional debt, guarantees, and equity instruments, to leverage blended finance and crowd-in private investment for climate action in developing countries. Additionally, the GCF is mandated to invest 50% of its resources to mitigation and 50% to adaptation in grant equivalent, with at least half of its adaptation resources invested in the most climate-vulnerable countries.
Overall, the GCF plays a critical role in mobilising finance at scale and enabling developing countries to turn their climate ambitions into action. However, there is a shrinking window of opportunity to address the climate crisis, and more urgency and ambition are needed. Developed nations must meet their pledge to mobilise USD 100 billion dollars a year for mitigation and adaptation in developing countries, and the GCF must continue to play a significant role in achieving this goal. Climate change offers businesses an unprecedented chance to capitalise on new growth and investment opportunities that can protect the planet as well. By working together and taking action now, we can limit global warming to 1.5°C and create a more sustainable and resilient future for all.
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