Climate Finance

Public and private climate finance is a central means of implementation for ambitious adaptation and mitigation options. Through our interdisciplinary approach linking science and policy elements we assist stakeholders in developing successful strategies to shift investments towards sustainable development in line with internationally agreed temperature goals.
As part of our negotiation support we assist vulnerable countries in their efforts to implement innovative and transformative approaches for an institutional architecture that is responsive to their needs and circumstances.

 ©Felix Fallasch / Copyright
©Felix Fallasch / Copyright

Green Climate Fund

The GCF was established to promote a paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries. We assist SIDS and LDC representatives on the GCF Board in their efforts to create an innovative and effective fund that can be accessed directly by those in need to finance transformative mitigation and adaptation projects.

We support our stakeholders’ mission to shape the design and operation of an international climate finance architecture that is responsive to their adaptation needs and provides increased volumes of funding for mitigation in developing countries to assist in the global peaking of emissions sufficient to keep warming below 1.5°C – one of SIDS and LDCs key demands.

Our work enabled a strong representation of SIDS and LDCs in the GCF Board, which resulted in innovative institutional arrangements of the Fund reflecting some of the major concerns of their constituencies, such as the GCF’s strong focus on readiness, the inclusion of the 2°C target in the Fund’s investment criteria, the fit-for-purpose accreditation approach, the mandated 50/50 balance between mitigation and adaptation over time, and the 50% minimum floor of adaptation funding for particular vulnerable countries.

Latest

At its latest meeting 2-5 November in Livingstone, Zambia the Green Climate Fund Board strengthened the Fund’s accreditation framework by agreeing on a policy to review every five years to what extent the GCF’s implementing partners’ overall portfolio of activities – beyond those funded by the GCF – have evolved in the direction of the Fund’s goal to promote a paradigm shift. Partners that continue to heavily invest into coal and other fossil fuels are now at risk of loosing their accreditation after their initial accreditation period ends.  
2015 is a critical year for the Green Climate Fund as the Fund is set to finally start running its operations, bringing to life the mechanisms that the Board has been designing over the past three years. In light of this, Climate Analytics' Felix Fallasch and Bianka Kretschmer comment on the GCF's policies on coal.  
With the signature by the Government of Japan to its contribution agreement with the Green Climate Fund (GCF) now almost 60 per cent of the pledges made to the Fund at its first pledging conference in November 2014 are secured through legally binding contribution agreements. Crossing the threshold of 50 per cent of the pledges covered by these agreements gives the GCF Board the authority to start allocating funding to concrete project and programme proposals. This is a major milestone in the evolution of the Fund and successfully completes a four-year design phase that has shaped the operational policies and procedures of the GCF.  
While the GCF is getting ready to disburse resources, it still awaits authorisation to start committing its resources to specific projects: According to the Fund’s contribution policies, this commitment authority is triggered when contributors realise their pledges through signing official legally binding contribution agreements for 50 per cent (USD 4.7 billion) of the total pledges made to the GCF.  
Current status of Green Climate Fund pledges ahead of this week’s Pledging Conference in Berlin  

Publications

The Green Climate Fund Board met for the 13th time 28-30 June 2016 in Songdo, Republic of Korea. This report outlines the key messages for policymakers from Small Island Developing States (SIDS) and Least Developed Countries (LDCs).  
With the signature by the Government of Japan to its contribution agreement with the Green Climate Fund (GCF) now almost 60 per cent of the pledges made to the Fund at its first pledging conference in November 2014 are secured through legally binding contribution agreements. Crossing the threshold of 50 per cent of the pledges covered by these agreements gives the GCF Board the authority to start allocating funding to concrete project and programme proposals. This is a major milestone in the evolution of the Fund and successfully completes a four-year design phase that has shaped the operational policies and procedures of the GCF.  
While the GCF is getting ready to disburse resources, it still awaits authorisation to start committing its resources to specific projects: According to the Fund’s contribution policies, this commitment authority is triggered when contributors realise their pledges through signing official legally binding contribution agreements for 50 percent (USD 4.7 billion) of the total pledges made to the GCF. The following briefing note provides an update on the status of contribution agreements signed by contributor countries as of 30 April 2015 - the Fund's initial deadline to reach the 50 percent threshold.  
For the operation of the GCF, it will be essential to define how the objective to promote paradigm shift towards low-emission and climate-resilient development pathways – as specified in the Governing instrument – will be operationalised. The paper provides some detailed reflections for mitigation and adaptation to stimulate ongoing discussion.  

Projects

The "Climate Action Tracker" is an independent science-based assessment, which tracks the emission commitments and actions of countries.  
The project supports national climate finance institutions tasked with accessing the Green Climate Fund (GCF) under the Fund’s direct access modality and provides strategic and conceptual support for developing national climate change strategies. Project Period: 2014 - 2016  
Climate Analytics provided conceptual and organisational support for the Green Climate Fund Readiness Meeting on 11–12 July 2013 in Bridgetown, Barbados, organised in a partnership between GIZ, CDB, and the GCF Board. Project Period: 2013