The Green Climate Fund (GCF) was established by the Conference of the Parties to the UNFCCC in 2010 as the principal financial resource to help nations cut carbon and protect themselves against the impacts of climate change. It is expected to become the main global fund for financing climate change mitigation and adaptation in developing countries in the coming years. As such, it will channel significant amounts of funding required to support developing countries to adapt to the impacts of climate change and to limit or reduce their greenhouse gas emissions.
It is widely recognized that direct access to these funds will require a level of capacity by governments and other actors who wish to acquire them. This could pose a significant barrier for many countries. For the GCF to succeed, national capacities and mechanisms for accessing, allocating, disbursing, and reporting about climate finance will need to align with the future requirements set by the GCF Board. In addition, countries’ institutional mechanisms related to the GCF funds will need to be compatible with their existing and future planning and budgeting systems, and be fully integrated with the countries’ national plans, policies, and sustainable development priorities. In other words, developing countries will need to “get ready” for GCF financing.
Together with the United Nations Environment Programme (UNEP) and the United Nations Development Programme (UNDP), WRI will initially target six countries. In these countries, the program will support ministries, local-level governments, private sector actors, financial institutions, and low-carbon technology providers as well as civil society actors in “getting ready” to play a key role in the design, uptake, and implementation of specific activities.
More specifically, the program will:
- Offer support for countries to directly or indirectly access the GCF, taking into account the access requirements of other funds and facilities such as the Adaptation Fund and the Global Environment Facility (GEF).
- • Help develop project pipelines based on national climate change strategies, plans, and policies in order to facilitate increased investment of the private sector in climate-relevant areas.
- Assist in setting up in-country monitoring tracking systems for climate finance and its effectiveness.
- Disseminate lessons learned in the course of the implementation back to the GCF Board in order to support its work in designing the GCF operations.