Green Climate Fund
Funding for mitigation and adaptation actions to offset climate change, focusing on the most vulnerable developing countries
Principal Office: International
The Green Climate Fund (GCF) was established by 194 governments to limit or reduce greenhouse gas emissions in developing countries, and to help vulnerable societies adapt to the unavoidable impacts of climate change.
The GCF is a stand-alone multilateral financing entity to serve the UN Framework Convention on Climate Change (UNFCCC), aiming to deliver equal amounts of funding to mitigation and adaptation. The Fund has five priorities:
- 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).
Grant Programs for Agriculture, Energy, Environment, Natural Resources
1 — Funding of Accredited Entities. The GCF allocates its funding through Accredited Entities (AEs). The AEs vary from international to national and sub-national, and from large to small and micro in terms of organizational scale. They include UN agencies, development banks, development agencies, conservation NGOs, investment funds, government ministries, and others.
To access the GCF’s resources, applicants need to pass an accreditation process. Each applicant is evaluated in relation to its fiduciary standards, environmental and social safeguards, and gender policy. Based on this review, the GCF determines the applicant’s capacity for using different financial instruments (i.e., grants, loans, equity, and guarantees) in programs and projects, and for other roles that it may play in relation to climate mitigation and adaptation.
Entities that are not accredited by the GCF may still submit funding proposals through an AE.
APPLICATION: The GCF posts an application form for applicants seeking accreditation.
The GCF requires a supporting nomination letter from the relevant National Designated Authority or Focal Point for applicants who are sub-national, national, and regional. The CGF provides their names and contact information in each country.
Applications for accreditation can be submitted at any time.
2 — Readiness Grants. The GCF offers grants up to US$1 million per country per year to help developing countries understand the GCF program, and to submit applications for accreditation.
Priority for the readiness grants focuses on the Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.
APPLICATION: Proposals for readiness grants are submitted through the country’s National Designated Authority or Focal Point for the GCF. They can be submitted at any time.
Geographical Distribution of Grant Activities in Developing Countries
The GCF describes its financial resources, with over US$10 billion in initial pledges.
The GFC is governed by a Board of 24 members – equally drawn from developed and developing countries.
The GCF provides an overview of its origins, management, and location in South Korea.
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