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Photo: GCFAdvocating before the Green Climate Fund
The Green Climate Fund is the world's leading multilateral climate finance institution. As such, it has a key role in channelling economic resources from developed to developing nations for projects focused on mitigation and adaptation in the face of the climate crisis.
Created in 2010, within the framework of the United Nations, the fund supports a broad range of projects ranging from renewable energy and low-emissions transportation projects to the relocation of communities affected by rising seas and support to small farmers affected by drought. The assistance it provides is vital so that individuals and communities in Latin America, and other vulnerable regions, can mitigate greenhouse gas emissions and address the increasingly devastating impacts of global warming.
Climate finance provided by the Green Climate Fund is critical to ensure the transformation of current economic and energy systems towards the resilient, low-emission systems that the planet urgently needs. To enable a just transition, it’s critical to follow-up on and monitor its operations, ensuring that the Fund effectively fulfills its role and benefits the people and communities most vulnerable to climate change.
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Read our recent report "Leading participatory monitoring processes through a gender justice lens for Green Climate Fund financed projects" here.
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Leading participatory monitoring processes for Green Climate Fund financed projects
The Green Climate Fund (GCF), a multilateral climate fund under the United Nations Framework Convention on Climate Change (UNFCCC), allocates funding for projects and programs aimed at reducing greenhouse gas emissions and building resilience to climate change impacts in developing countries. To date, the GCF board has approved 243 projects worldwide, committing 13.5 billion USD in total. Notably, approximately 26% of these projects and programs target Latin America.This financial mechanism has become a lynchpin of the climate finance architecture, challenging conventional approaches to international projects. It is governed by a board with equal representation from developed and developing countries (UNFCCC designations); robust environmental and social policies rooted in human rights; an indigenous people’s policy, backed by an advisory group that interfaces with the Secretariat and the Board; a stated preference for maximal information disclosure; a seat for active observers representing civil society organizations; strong ties to the UNFCCC and the Paris Agreement; and an explicit mandate to include a gender perspective. In fact, all approved projects and programs are required to integrate a Gender Action Plan (GAP). In addition, the GCF is mandated by its own policies to facilitate stakeholder participation mechanisms. These mechanisms encompass representation from diverse sectors, including the private sector, civil society organizations, vulnerable groups, women, and indigenous peoples.Though implementation of these safeguards and progressive policies is far from perfect, their existence lays the groundwork for stronger future implementation. Civil society, including feminist movements and organizations, engage with the GCF as a climate finance mechanism that should continue to be strengthened. The explicit analysis and commitment mandated for each project regarding social and gender considerations not only facilitate engagement but also uphold accountability.In late 2022, partner organizations of the Global Alliance for Green and Gender Action (GAGGA), including the International Analog Forestry Network (IAFN), Asociación Interamericana para la Defensa del Ambiente (Interamerican Association for Environmental Defense, AIDA), Fondo Centroamericano de Mujeres (Central American Women’s Fund, FCAM), Fondo Tierra Viva (Tierra Viva Fund) and Women’s Environment and Development Organization (WEDO), collectively launched a pilot initiative. The project aimed to facilitate participatory monitoring of the implementation of the project FP089 Upscaling climate resilience measures in the dry corridor agroecosystems of El Salvador (RECLIMA). 3 RECLIMA was approved by the Board of Directors of the GCF during its 21st meeting (B.21) in 2018. For the fieldwork, an alliance was formed with Unidad Ecológica Salvadoreña (Salvadorean Ecological Unit, UNES), a local ecofeminist NGO advocating for environmental and gender justice in El Salvador.The main objective of this project was to pioneer a participatory monitoring process for a GCF-funded project, with specific emphasis on gender equality. Each participating organization approached this collaborative initiative with genuine curiosity, eager to explore its feasibility and potential impact. There was also a collective commitment to openly share information about the process, results, challenges, and lessons learned. This report aims to summarize the outcomes of this exercise, providing an overview of the RECLIMA project and highlighting the importance of gender equality and participatory monitoring within climate projects; as well as sharing primary findings and key recommendations, tailored to GCF Accredited and Executing Entities. Read and download the report
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Communities in Nicaragua win Green Climate Fund withdrawal from project that violated their rights
In an unprecedented decision resolving a complaint filed in 2021, the Green Climate Fund terminated a forestry project because the developers failed to comply with the Fund's policies and procedures on socio-environmental safeguards. This non-compliance violated the human rights of indigenous and Afro-descendant communities. The Green Climate Fund, the world's leading multilateral climate finance institution, decided to terminate funding for a forest conservation project in Nicaragua because the developers failed to comply with the institution's policies and procedures on socio-environmental safeguards. The non-compliance violated the rights of indigenous and Afro-descendant communities, as the project threatened to exacerbate the situation of violence from which they were already suffering. The Fund had not made any disbursements for the project and project implementation had not yet begun.The decision, the first of its kind in the Fund's history, is in response to a complaint filed in June 2021 by representatives of the affected communities, with the support of local and international organizations, with the Fund's Independent Redress Mechanism. The Independent Redress Mechanism hears complaints from people who are or may be affected by projects or programs financed by the Fund."This decision is a recognition of the tireless efforts of the communities behind the case, who were able to demonstrate the difficult situation they face, as well as a reminder of the importance of involving local communities in all stages of a project, from its conception," said Florencia Ortúzar, Senior Attorney at AIDA, one of the organizations that accompanied and provided legal support to the complaint process.In the complaint, the communities argued that implementing the project— called Bio-CLIMA: Integrated Climate Action to Reduce Deforestation and Strengthen Resilience in the BOSAWAS and Río San Juan Biospheres— would have serious impacts because:There was no adequate disclosure of information, no indigenous consultation, and no free, prior, and informed consent.The project would cause environmental degradation and increase violence against indigenous communities due to land colonization.The conditions imposed by the Fund's Board of Directors for project approval (including independent monitoring of project implementation and ensuring the legitimate participation of indigenous peoples) were not met.There was a lack of confidence in the Central American Bank for Economic Integration, the entity accredited to channel the funds, as to its compliance with the Fund's policies.There was a lack of confidence in the ability of the Government of Nicaragua, as the implementing agency, to fulfill its obligations in the execution of the project. The goal of the project, for which the Fund committed $64 million USD in 2020, was to restore degraded forest landscapes in Nicaragua's most biodiverse region (home to 80 percent of the country's forests and most of its indigenous peoples) and to channel investments toward sustainable land and forest management.However, the project was designed without adequate consultation, with a complete lack of transparency on the part of the sponsoring bank and ignoring the difficult context of violence and lack of human rights protection still suffered by indigenous communities in Nicaragua, particularly in the project area.In recent decades, the harsh local situation has only worsened because of organized crime, drug trafficking, the expansion of agriculture and cattle ranching, and the promotion of extractivist policies, as well as the lack of state protection.The investigation launched by the Independent Reparations Mechanism, which included field work and face-to-face and virtual interviews with all stakeholders, confirmed some of the allegations made in the complaint, including the lack of adequate consultation processes and the lack of free, prior, and informed consent of the affected communities. This is stated in the investigation’s final report.In July 2023, the Fund's Board of Directors, which was called upon to decide on the future of the project based on the Investigation Report, delegated the task to the Fund's Secretariat. As a result, neither the IRM nor the claimants had any further say in the matter.Finally, on March 7 of this year, the Secretariat announced its decision: to terminate the project's financing agreement, acknowledging that the developers had failed to comply with the Fund's policies, as alleged by the communities in the complaint."The decision is a valuable lesson for the Green Climate Fund, whose policies and safeguards exist to prevent these unfortunate situations and must be applied rigorously and consistently from the conception of projects seeking funding," said Ortúzar. Press contactVíctor Quintanilla (Mexico), AIDA, [email protected], +52 5570522107
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Climate finance and a gender perspective: two concepts that must be intertwined
By Camila Bartelega, Florencia Ortúzar and Francisco Pinilla* Women and girls are disproportionately affected by the onslaught of the climate crisis. This is because they are usually the ones responsible for fetching water and food, and for taking care of children, the elderly, and the sick. Climate change makes this unpaid care work much more difficult. Evidence also shows that women and girls are more vulnerable to natural disasters. It's estimated that they're 14 times more likely to die than men when natural disasters strike. This may be because they are caring for vulnerable people, because they are often not taught how to swim or climb trees, or because they wear inadequate clothing to respond, amongst others. On the other hand, as the climate crisis creates chaos and increases conflict, they are more vulnerable to sexual assault and domestic violence. This is fueled by the growing frustration of a world in which resources are becoming scarcer and more difficult to obtain. It is clear, then, why it is important to include a gender perspective when talking about how best to address the climate crisis. But doing so is important not only to "level the playing field" for historically disadvantaged women, but also because they have a lot of knowledge to contribute, and the additional burdens they carry affect their ability to contribute to the best solutions. Including a gender perspective in climate action is therefore both fair and desirable for more effective and beneficial outcomes. If they are excluded, women lose, and we all lose. For Maite Smet, Executive Director of the International Analog Forestry Network, when we talk about a gender approach, or even a feminist approach, we are talking about issues of power. "Working from a gender and climate justice perspective is about wanting to change systems of power that have historically oppressed and socially excluded people," she said. "It opens up the possibility of including people who have not been part of important climate conversations and decisions." Now let's look at the relationship between gender and climate finance, a critical element in the uphill battle to preserve a livable planet. Gender and climate finance Tackling the global climate crisis will require transforming the way we live on the planet, including energy and food production, infrastructure and transportation. This will require significant financial resources. The Paris Accord stipulates that developed countries must provide financial assistance to the least developed and most vulnerable countries. This brings us to the world of climate finance: The provision of funds to implement mitigation and adaptation measures. All climate finance must have a gender perspective, as the impacts of the climate crisis disproportionately affect women and girls. What does this mean? It means funding that understands and intentionally addresses these differentiated impacts. It means that funding decisions are made with the participation of women, recognizing that they have valuable knowledge of their territories and are therefore the bearers of valuable solutions. Finally, it means making funding available and accessible to women. According to Natalia Daza, gender monitor of the Green Climate Fund for Latin America and the Caribbean and member of the Women Environment and Development Organization, the gender approach to climate finance has a lot to do with understanding that inequality shapes the way social relations take place. "Women are affected differently, usually more negatively, by the impacts of climate change,” she explained. “That's why civil society has a very important role to play in ensuring that climate action includes the voices of women, LGBTIQ+ and feminist organizations, from design to implementation.” The Gender Approach in the Green Climate Fund At AIDA, when we track climate finance coming into the region, we focus on the Green Climate Fund (GCF), the world's leading climate fund, which is accountable to the United Nations Framework Convention on Climate Change. Although far from perfect (not least because what is written is not necessarily followed), it is perhaps the most progressive fund on gender issues. The GCF's gender policy recognizes that climate change affects women and men differently and emphasizes the importance of women's participation and leadership in decision-making processes related to finance. It is considered progressive, compared to other funds, because of its cross-cutting approach, which seeks to integrate gender considerations into all aspects of financing. According to Seblewongel Deneke, the GCF’s gender specialist, any policy or strategy that emerges from the fund must take the gender perspective into account. "It is clear that both women and men contribute equally and should have equal opportunities. But we need to recognize that there are differentiated challenges for men and women, and that both are part of the solution." The policy includes capacity building, tools and materials. "The climate debate is not just about the climate agenda; it brings other elements of inequality to the table. We need to change access to education and health and ensure the basic rights that every individual should have, including women," Deneke said. What is needed? We cannot deny that we have made progress. The importance of the gender perspective in climate action and finance is discussed and recognized. There are policies to ensure it, institutions to implement it, and sometimes even staff and budgets to do so. But the job is not done. Women still have less access to climate finance and fewer positions of power. And mitigation and adaptation projects often fail to consider the disproportionate impact of climate change on women. It is not easy to change things when they move with the inertia of what has always been. But we cannot give up. At AIDA, we have integrated a gender perspective across all our work. In doing so, we have broken new ground on many fronts and improved our results, and not just for the benefit of women. As a regional node of GCF Watch, an international observatory that monitors the Green Climate Fund, AIDA is a bridge between decision-making at the Board level and the territories that receive the projects financed. Florencia Ortúzar, Senior Attorney at AIDA, says that it is not enough to have funds, there must also be adequate investments. "Civil society monitoring is key to ensure that investments in the name of climate are made with respect for human rights and with a gender focus, and to achieve the maximum potential of the funds allocated to these types of projects and programs." This was the theme of an in-person event held in Rio de Janeiro in June. Supported by the Global Alliance for Gender and Green Action (GAGGA) - and organized by CASA Socio-Environmental Fund, AIDA and Both Ends - the event aimed to train and motivate regional organizations with a feminist base to be better prepared to follow up on the Green Climate Fund. Lola Gutiérrez, director of the Bolivian Women's Fund, who attended the event, emphasizes the importance of learning more about the fund, other countries' experiences, and how to access these resources. "Women are affected in different ways by extractivism and climate change, and we are fundamental actors in the solution. It is important to be present and to problematize what is happening." One of the conclusions of the event was that with the progress in policies and with a narrative that is much more receptive to gender, we can stop being gatekeepers that prevent the passage of bad projects and become strikers that propose projects to be implemented to stop the climate crisis. Therein lies the hope that these grassroots organizations will soon be the ones accessing funds and proposing solutions. Only then can we celebrate and rest. * Camila Bartelega is a fellow with AIDA's Climate Program, Florencia Ortúzar is a senior attorney and Francisco Pinilla is a digital communications strategist.
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