Launched in 2014, the Green Climate Fund offers an ambitious platform for contributions and investments in climate mitigation and adaptation in the developing world. WRI worked with the GCF secretariat and Board and a large number of partners and stakeholders to help shape the Fund's structure.
Providing finance to support developing countries’ efforts to respond to a changing climate is a key challenge of the 21st century. To meet this challenge, it is essential to find new ways to raise funds and invest in projects that curb emissions and build resilience to the climate impacts that are already unavoidable.
WRI’s finance team has provided technical and analytical work to the GCF from inception in 2011 through launch in 2014. Unlike previous major multilateral climate funds, the Green Climate Fund has a broad base of contributors among both developed and developing countries. Its 24 Board members are balanced between developed and developing countries, and its administration is lean.
The Fund is designed to work through partners, such as national development banks and the World Bank. Private sector involvement is also central to the Fund, which has the flexibility to use innovative financial instruments to encourage private companies to help tackle climate change, thereby stretching GCF resources.
The WRI team has sought to support the GCF management and Board to help ensure that ambition and rigor were built in to GCF design, so the Fund can deliver value for money to mitigate and adapt to climate change.
As pledges of support flow in, the Fund’s investment framework lets it set priorities about how money can be invested for maximum impact. The Fund’s structure enables it to extend its reach through a wide array of partners, balanced between national and international institutions, while ensuring that all partners meet high fiduciary, environmental and social standards.
WASHINGTON— On November 20, 2014, countries held a pledging conference of the Green Climate Fund in Berlin – where countries announced their financial commitments to the Fund. These funds will be used to support vulnerable countries to respond to the mounting risks of climate change, and to reduce emissions that cause climate change.
Recently the world took two giant steps toward reaching a global agreement to fight climate change in 2015: a landmark U.S.-China accord and a $4.5 billion pledge to the Green Climate Fund by the United States and Japan.
Call it bad timing: Brazil’s greenhouse gas emissions intensity is rising while that of most of the G20 countries decreases, just as more infrastructure investment will be needed to support expected economic growth and social inclusion. Representatives of commercial banks in Brazil, the Brazilian Development Bank (BNDES), the Inter-American Development Bank (IDB), Brazil’s Ministry of Finance and others joined WRI experts to explore how they can collectively help the country make the transition to a low-carbon economy.
Through the Compact of Mayors and parallel initiatives, cities are making ambitious commitments to curb emissions, adopting new greenhouse gas emissions measuring standards, and supporting the financing of low-carbon infrastructure.
The UN Climate Summit brought together more than 125 heads of state and government officials—the largest-ever climate meeting of world leaders. Leaders clearly demonstrated their understanding that the impacts of climate change are real and costly, and that they no longer have to choose between economic growth and climate action—they go hand-in-hand.
WRI’s experts were in New York for all the action. While the outcomes from the Summit are still evolving, here’s our first look at progress made and next steps.
The UN Climate Summit will draw 125 heads of state and government to address the global challenge of climate change, the biggest gathering of its kind ever. Building on the excitement of the massive People’s Climate March on September 21, we should expect some movement on the key question of how to finance climate solutions.