BONN, GERMANY (October 5, 2023) — Today, 25 nations gathered at the Green Climate Fund’s pledging conference to announce $9.3 billion in new contributions to the fund’s second replenishment. Formally established in 2010, the Green Climate Fund is central to the cooperative international effort on climate change. Capitalized by 37 developed countries, with voluntary additional contributions by 9 developing countries, it provides finance to developing countries towards mitigation, adaptation and resilience efforts. Its first round of funding (2015) and first replenishment (2019) both comprised roughly $10 billion. New executive director Mafalda Duarte aims to grow the fund to $50 billion by 2030. 

The Green Climate Fund plays an important role in catalyzing transformational change toward a low-emissions and climate-resilient future. It already disburses its funds with a balance between adaptation- and mitigation-focused projects. In an environment where developing countries have repeatedly stressed the need for more concessional finance, 41% of its funds are made available as grants.

World Resources Institute previously released research estimating appropriate levels of contribution to the Green Climate Fund, in line with developed countries’ historical responsibility for greenhouse gas emissions and ability to contribute. 

The following is a statement from Shuang Liu, Acting Global Finance Director for World Resources Institute: 

“Developed countries are still delivering nowhere near the amount of finance that developing countries need to address the climate crisis. Instead of ratcheting up ambition, developed countries are in danger of providing even less finance than in the Fund’s prior funding rounds. As climate-driven floods, droughts and heatwaves devastate communities, the status quo is simply not enough.”

“Developed countries need to deliver a step-change in ambition to meet their responsibility to aid developing countries in adopting clean energy and adapting to the increasingly extreme climate impacts they bear little historical responsibility for.” 

“A few countries did step up with substantial contributions, including Germany, the United Kingdom, and France.

“The United States did not announce any new finance today but have indicated they are preparing a pledge. As the country that should fairly provide the greatest share of climate finance, the U.S. should deliver a substantial contribution before COP28 to boost their credibility ahead of the negotiations.”