GCF: Funding The Climate Change Movement
GCF: Funding The Climate Change Movement
Combating climate change requires adequate financing and the Green Climate Fund (GCF) has been created for this purpose. The GCF is now considering acceptance of funds from private sector corporations as well as institutions, a move which will be finalised next year in 2015.
Green Earth, Clean Earth
The GCF aims to protect the planet through climate friendly initiatives which will combat climate change. The executive director of the Green Capital Fund, Hela Cheikhrouhou has indicated in Lima that the GCF will be accepting funds from the private sector soon. This climate fund has crossed the USD 10 billion mark during the UN climate change talks, but more needs to come for developing countries to be able to fight back against the adverse impact of climate change.
The first batch of mitigation and adaptation funds from the GCF will be disbursed by the month of October next year, says the ED of this fund. The fund has also agreed during a Barbados based meeting earlier in the year that the first capitalisation period would last for a 4 year period from 2015 to 2019. This decision came about based on a consensus. India had suggested that the Adaptation Fund could be included in GCF but the former has its own secretariat.
Though Germany has made a fresh commitment of 55 million Euros, the Adaptation Fund is currently stagnant through it was to receive funds from the Clean Development Mechanism. The GCF is currently involved in the accreditation of local, regional and national implementing agencies which have direct access to it. The GCF operates in the following manner. The Board decides to work through intermediaries and deploys them via equity guarantees and loans. Soon, financial instruments and partners for this purpose will also be available.
Developing Nations Call For Operationalisation
In the middle of 2017, the GCF has aims to allot 60% of its funds and this will trigger replenishment of the Fund. The period of future commitments will be based on this. Union Minister of State for Environment from India and other ministers from developing nations have been emphasising on funds for adaptation and operationalisation of the GCF.
India’s environment minister has indicated that the world requires close to US 1500 billion for climate action each year. A road map of the finance was therefore vital. Earlier studies by the WRI on Fast Start Finance could also point to effective operationalisation of the GCF.
How the Green Climate Fund was Established
At COP 16, the Green Climate Fund was established as an operating entity of the Financial mechanism of convention as per article 11. The GCF was created solely for supporting projects, activities, policies and programmes in the developing nations. This Fund’s governance is through the GCF Board.
GCF is the biggest dedicated climate fund and it has a successful and timely resource mobilisation process. However, more efforts are needed for the operationalisation of this fund so that the climate change movement in developing nations can be successful.
