What is Green Climate Fund (GCF)?

The Green Climate Fund (GCF) is a global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change.

The GCF is based in Incheon, South Korea.

Establishment of Green Climate Fund (GCF)

It was set up by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) as part of the Convention’s financial mechanism.

The fund was formally established during the 2010 United Nations Climate Change Conference in Cancun as a fund within the UNFCCC framework.

Background

Responding to the climate challenge requires collective action from all countries, including by both public and private sectors. Among these concerted efforts, advanced economies have agreed to jointly mobilize significant financial resources. Coming from a variety of sources, these resources address the pressing mitigation and adaptation needs of developing countries.

As per the UN Framework Convention on Climate Change, provision of adequate climate change finance by the developed countries to developing countries is a commitment/obligation of developed countries (responsible for historic emissions and causing climate change).

Developed country parties have to mobilize and provide funds for addressing adaptation and mitigation at the required scale through the Financial Mechanism of the Convention.

Mission of the Green Climate Fund (GCF)

The Green Climate Fund was established with a mission to advance the goal of keeping the temperature increase on our home planet below 2 degrees Celsius.

Features of Green Climate Fund (GCF)

1 . The Fund pays particular attention to the needs of societies that are highly vulnerable to the effects of climate change, in particular Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.

2 . GCF aims to catalyze a flow of climate finance to invest in low-emission and climate-resilient development, driving a paradigm shift in the global response to climate change.

3 . The Fund’s investments can be in the form of grants, loans, equity or guarantees.

4 . When the Paris Agreement was reached in 2015, the Green Climate Fund was given an important role in serving the agreement and supporting the goal of keeping climate change well below 2 degrees Celsius.

PRACTICE QUESTIONS

QUES . Which of the following statements regarding ‘Green Climate Fund’ is/are correct? UPSC 2015

1 . It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change.

2 . It is founded under the aegis of UNEP, OECD, Asian Development Bank and World Bank

Select the correct answer using the code given below.

a . 1 only

b . 2 only

c . Both 1 and 2

d . Neither 1 nor 2

Ans a