Today, at the international climate conference in Lima, Peru (COP20), the government of Belgium pledged to contribute more than 50 million Euros (around $62 million US) to the Green Climate Fund, edging the fund past its $10 billion goal for 2014. This is an important marker in making the Green Climate Fund operational.
Following is a statement by Athena Ballesteros, Finance Director, World Resources Institute:
by Pieter Terpstra, Annaka Peterson-Carvalho (Oxfam America) and Emily Wilkinson (Overseas Development Institute) - December 08, 2014
Adaptation finance accountability is key to addressing obligations of national governments and international organizations to provide support, but actual funding decisions are often made without involving the populations hit first and worst by climate change, or without understanding how communities are vulnerable.
So who is accountable for making good use of adaptation funds, and who should hold whom accountable?
Climate change negotiations at COP 20 in Lima, Peru, have reached their mid-point and are moving into high gear. This week will be crucial as talks continue on a draft international climate agreement due to be concluded in Paris at the end of 2015.
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.