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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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Climate Marchers to Global Leaders: No dirty energy in the Green Climate Fund
New York, NY – As world leaders prepared to announce pledges of climate action and money for the Green Climate Fund, thousands of people flooded the streets of New York City yesterday demanding a financial commitment to clean energy and climate-resilient solutions. Heads of state are gathering at the United Nations tomorrow, at the invitation of UN Secretary General Ban Ki-Moon, in an attempt to jump-start negotiations for a new global climate deal. According to Janet Redman, climate policy director at the Institute for Policy Studies, “Reaching an agreement to stabilize the climate rests on developed countries making good on their promises. Contributions to the Green Climate Fund are past due. We need to see serious commitments from our governments to deliver financing for low-carbon, climate-friendly development now.” Andrea Rodríguez, Mexico-based legal advisor for the climate change program of the Interamerican Association for Environmental Defense (AIDA), added, “Billions of people still lack access to energy. The Green Climate Fund should support communities to meet that need through truly clean, decentralized, sustainable renewable energy. Despite the interest from various sectors in promoting carbon capture, natural gas, and large dams as climate solutions, this institution should not provide financial support for any project that emits greenhouse gas pollution.” The policies established by the Fund's 24 board members, from both developed and developing countries, have so far not excluded any energy sector from receiving finance, increasing the risk that dirty projects could ultimately receive support. “Dirty energy is more than fossil fuels,” noted Zachary Hurwitz, a consultant for International Rivers. “Hydropower dams can release methane, they can destroy carbon-sequestering forests, and they can displace thousands of people. And there’s nothing clean about the human rights violations that all too often result.” Lidy Nacpil, director of Jubilee South Asia Pacific Movement on Debt and Development, based in the Philippines, said, “In my country, we’re already facing the devastation of climate change. Wealthy industrialized countries have a legal and moral obligation to repay their climate debt and support adaptation through the Green Climate Fund. But that’s not enough. The fund must not exacerbate climate change and its impacts by financing dirty energy.” Additional information: Read the latest commentary from the Institute for Policy Studies on the Green Climate Fund. Read the Global South Position Statement on the Green Climate Fund. Read the open letter to governments, international institutions and financial mechanisms to stop considering large dams as clean energy and to implement real solutions to climate change.
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"We want the Green Climate Fund to follow the rules of procedure it has adopted"
AIDA attended the Latin American Carbon Forum 2014 in Bogotá, Colombia. There, our lawyer Andrea Rodríguez participated as a representative of civil society in a panel on the Green Climate Fund (GCF), a mechanism that will mobilize large amounts of resources to support adaptation and mitigation of climate change. Andrea answers a series of questions about the current situation and prospects of the GCF. - What are civil society’s expectations for the Fund? - We have the same expectations as the Fund. We want it to be a transparent, inclusive institution that is constant learning, as stated in Article 3 of its governing instrument. Its focus has to be driven by each country’s determination of what priorities should be funded. It must balance funding for adaptation and mitigation of climate change. We expect the Fund to promote social, environmental, economic, and development co-benefits and taking a gender sensitive approach; men and women are affected to the same degree by climate change. In short, we want the Green Climate Fund to follow the rules of procedure it has adopted. - How can a balance in funding for mitigation and adaptation be ensured? - Financing is given mostly for mitigation projects, despite the great need to fund projects for adaptation to climate change. In Bali, Indonesia, during the penultimate meeting of the Fund’s Board, it was decided that 50% of the funding will go to mitigation and 50% for adaptation. That decision was made and we must ensure that it is followed. Furthermore, in Latin America, development plans and climate change strategies that have been advanced have set adaptation financing as a priority. - How should civil society involve itself in the Fund? - We must go beyond design to implementation. The Fund's governing instrument provides in Article 71 that the Board needs to develop mechanisms to promote the participation of all stakeholders (vulnerable groups, women, civil society and indigenous groups) in the design, development and implementation of projects and programs financed by the Green Climate Fund. There is a mandate for civil society in all stages. The issue is relevant because the Fund will become operational soon and will have to create these participatory mechanisms at the national level, particularly when countries begin to name their national designated authorities (those that collateralize the projects or activities financed by the Fund). It needs to institutionalize these participatory processes. - How can one measure the effectiveness of a project to be funded? - The definition of indicators will be among the topics discussed at the next meeting of the GCF Board, but some are particularly important. In adaptation, we need to consider whether a project can help reduce the vulnerability of a community to climate change. As for mitigation, you have to measure the amount of emissions reduced. But the most important aspect is to measure co-benefits that a project or activity can generate: if it creates jobs, improves people’s quality of life, etc. This is because the Green Climate Fund aims to contribute to a paradigm shift that promotes sustainable development. Helping to improve quality of life is a change of this nature. Many times, projects that have positive climate benefits generate social, environmental, and economic problems. So it is essential that additional benefits are evident in social, environmental, and economic terms.
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Can COP19 move the Green Climate Fund closer to reality?
By Andrea Rodríguez, AIDA's legal advisor, and Marcus Pearson, AIDA's volunteer (article published in Respond/RTCC Magazine) The Green Climate Fund was created as an effective response to the impacts of climate change by channeling financial resources from developed to developing countries. Will this happen? The Conference of the Parties in November will provide an opportunity for developing countries to lobby for significant financial commitments from the developed world to ensure the long-term viability of the GCF. The Green Climate Fund (GCF) was created in 2010 at the 16th Conference of the Parties (COP16) to the United Nations Framework Convention on Climate Change (UNFCCC). Its mission is to channel public and private financial resources to developing countries to help them mitigate and adapt to the impacts of climate change through low-emission and climate-resilient programs. But nearly four years later, the GCF has yet to disburse any funds. The GCF board has held four meetings with only limited results. At the first meeting in Geneva in August 2012, the board selected two interim co-chairs: Mr. Zaheer Fakir of South Africa and Mr. Ewen McDonald of Australia. It also formed committees, designated the World Bank as Interim Trustee, and agreed to invite observer organizations to participate, albeit in a restricted capacity. A lack of consensus stalled decisions at the October 2012 meeting in South Korea, where the only notable motion was making Songdo, South Korea the GCF’s headquarters. More advances came at the February 2013 meeting in Berlin. The board adopted procedural rules to govern its actions, regulate board member selection and define the participation and role of civil society observers. This laid the groundwork for the GCF to carry out its mission. At the June 2013 meeting in South Korea, the board then discussed the GCF’s business model framework (BMF) and the policies, guidelines and organizational structures needed to commence operations. The board also chose the governance structure of the private sector facility (PSF) [i] and appointed Ms. Hela Cheikhrouhou of Tunisia as executive director of the GCF Secretariat. The fifth meeting in Paris could address the many outstanding issues still needed to bring the GCF into effective operation. To do so, the Board must overcome its perceived ineffectiveness. Civil society concerns Civil society organizations (CSOs) are concerned about the GCF’s decision-making process and future. Perhaps the greatest issue is the uncertainty of funding. The GCF board has started to identify project areas and define criteria to allocate resources, but developed countries have yet to pledge meaningful funds. Concrete commitments are essential to ensuring the availability of predictable resources needed to achieve long-term results to mitigate and protect against the impacts of climate change. CSOs also fear that a lack of transparency and accountability will hamstring the GCF. Transparency does not seem to be a priority for the board. For example, the board has decided against webcasting its meetings even though the UNFCCC commonly does so, helping to cut costs and carbon emissions associated with travel. If the GCF already broadcasts meetings to observers in an overflow room, why not webcast? CSOs fear the board does not want to make its meetings open to the public. Lack of public accountability remains a concern particularly because of the small opportunity given to civil society to participate in the decision- making process. The GCF will mobilize financial resources from both public and private sectors, and civil society oversight is needed to ensure that policies do not respond to the investment interests of the private sector but to the needs of the most vulnerable. Moreover, the board is not granting CSOs meaningful opportunities for participation. The GCF publishes documents before meetings without sufficient time for many CSOs to review and comment on proposals[ii]. Meanwhile, only two CSO representatives may actively participate at board meetings in person and even so may not be allowed to talk or approach board members[iii]. These practices call into question the GCF’s legitimacy. Globally, CSOs play a vital role in developing climate change policy by informing decision makers about local issues and needs, and by providing examples of best practices for resource allocation. Given that the GCF stresses accountability in its mandate, CSOs should have access to government representatives and information in open and transparent meetings. COP19: An opportunity for the GCF? The COP19 this November in Warsaw will show the world whether the GCF can become an effective engine for climate change funding in developing countries. At this conference, developing countries must seek firm financial commitments for climate adaptation and mitigation. Only guaranteed funding will enable the board to make effective decisions regarding resource distribution or provide developing nations with a clear picture of how much funding is available. The GCF Board must also seek -- and receive -- guidance because many COP attendees will benefit from GCF resources. Countries can use the COP to provide advice on GCF policies, share their priority needs for funding, and recommend criteria to guarantee access to resources. The COP will also give CSO representatives a chance to raise questions and highlight counterproductive practices. Conclusions The COP presents a prime opportunity for developed nations to commit to the GCF’s stated goals and pledge desperately needed financing. Parties and CSOs must use the COP – GCF’s monitoring body – as a tool to improve GCF accountability, inclusivity and transparency so that the GCF can truly work to benefit vulnerable populations in developing countries. The COP should be a benchmark for advancing the GCF rather than just another event for developed countries to congratulate themselves on timorous steps forward. [i] The PSF will enable the GCF to directly and indirectly finance private sector mitigation and adaptation activities at the national, regional and international level. [ii] For the June meeting in South Korea, documents were published less than two weeks before the meeting, rather than 21 days as outlined in the additional rules of procedure decision taken in Berlin. [iii] As was the case on the last day of the meeting in Songdo.
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