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— CH. 1 · FOUNDING AND ESTABLISHMENT —

Green Climate Fund

~3 min read · Ch. 1 of 6
6 sections

  • The 2009 United Nations Climate Change Conference in Copenhagen marked the first mention of a "Copenhagen Green Climate Fund". Wealthier nations had agreed to mobilize $100 billion annually by 2020, yet uncertainty lingered over how this money would be raised. The fund formally took shape during the 2010 United Nations Climate Change Conference held in Cancun as an entity within the UNFCCC framework. Its governing instrument was finally adopted at the 2011 conference in Durban, South Africa. Researchers from the Overseas Development Institute noted that without this last-minute agreement on a governing document, the African COP might have been deemed a failure. Developing countries like South Africa subsequently began integrated planning to avoid lock-in to unsustainable development pathways.

  • Mafalda Duarte, a Portuguese development economist, serves as the Executive Director of the Green Climate Fund. The organization is governed by a Board composed of twenty-four members representing both developed and developing nations. A permanent secretariat supports the board's work and is located in Songdo, Incheon, South Korea. The World Bank initially acted as the temporary trustee while rules for disbursement were being written. The board was tasked with establishing an independent secretariat and selecting a permanent trustee to manage operations. This structure ensures accountability to the Conference of the Parties under the guidance of the COP.

  • As of December 2023, the GCF managed a portfolio valued at $13.5 billion USD. Including co-financing, the total reached $51.9 billion USD. By February 2020, pledges totaled $10.3 billion USD with $8.24 billion confirmed during the Initial Resource Mobilization period. U.S. President Obama committed $3 billion to the fund but left $2 billion owing after initiating a second $500 million transfer in January 2017. Former President Donald Trump criticized the initiative on the 1st of June 2017, calling it a scheme to redistribute wealth from rich countries to poor ones. Japan pledged $1.5 billion while the United Kingdom contributed $1.211 billion to the initial pool.

  • The fund partners with eighty-four organizations including commercial banks, state agencies, and civil society groups. These entities pilot innovative approaches to climate programs across developing nations. The board develops rules ensuring disbursement aligns with national objectives of recipient countries. Projects range from off-grid solar energy plans incorporating consumer protection to community-led adaptation strategies. Ghana received seven projects totaling $103.7 million by July 2023. Bangladesh secured seven projects worth $374 million over the same period. The fund aims to balance support between mitigation activities and adaptation measures despite lacking universal metrics for adaptation.

  • A debate emerged regarding the creation of the Private Sector Facility designed to appeal to capital markets. Developed countries advocated using financial instruments to attract trillions of dollars held by pension funds and institutional investors. Developing nations and NGOs argued the facility should instead focus on pro-poor climate finance for micro-enterprises. This emphasis on encouraging domestic private sectors is written into the GCF's founding document. Critics worry that reliance on leveraging private sector finance might reduce funding available for adaptation in vulnerable regions. The tension remains unresolved as the fund attempts to balance market mechanisms with grassroots needs.

  • During a March 2015 board meeting in South Korea, the GCF refused an explicit ban on fossil fuel projects. Japan, China, and Saudi Arabia opposed the proposed restriction allowing coal plants to receive funding. Former director Héla Cheikhrouhou complained in 2016 that the fund backed too many business-as-usual investment proposals. Civil society organizations echoed her concerns about the lack of restrictions on traditional energy sources. The refusal to ban such projects highlights ongoing struggles within the portfolio between immediate economic interests and long-term climate goals.

Common questions

When was the Green Climate Fund formally established?

The Green Climate Fund formally took shape during the 2010 United Nations Climate Change Conference held in Cancun. Its governing instrument was finally adopted at the 2011 conference in Durban, South Africa.

Who is the Executive Director of the Green Climate Fund as of December 2023?

Mafalda Duarte serves as the Executive Director of the Green Climate Fund. She is a Portuguese development economist leading the organization governed by a Board composed of twenty-four members representing both developed and developing nations.

Where is the permanent secretariat of the Green Climate Fund located?

A permanent secretariat supports the board's work and is located in Songdo, Incheon, South Korea. The World Bank initially acted as the temporary trustee while rules for disbursement were being written before this location was finalized.

How much money did the Green Climate Fund manage as of December 2023?

As of December 2023, the GCF managed a portfolio valued at $13.5 billion USD. Including co-financing, the total reached $51.9 billion USD with pledges totaling $10.3 billion USD by February 2020.

Which countries received projects from the Green Climate Fund by July 2023?

Ghana received seven projects totaling $103.7 million by July 2023. Bangladesh secured seven projects worth $374 million over the same period to support community-led adaptation strategies.

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All sources

40 references cited across the entry

  1. 1webU.S. Delivers for the Green Climate Fund and the World's Most Vulnerable20 April 2023
  2. 2webExecutive Director, Green Climate Fund25 September 2024
  3. 3webTransitional Committee for the design of the Green Climate FundUNFCCC
  4. 4webCOP28: Green Climate Fund reaches record funding levelGreen Climate Fund — 2023-12-03
  5. 5webExecutive Director unveils "50by30" blueprint for reform, targeting USD 50 billion by 203022 September 2023
  6. 6inlineCenter for Global Development, 15 Aug. 2015 "Developed Countries Are Responsible for 79 Percent of Historical Carbon Emissions"
  7. 7inlineRapid Transition Alliance, 13 Apr. 2021 "Cambridge Sustainability Commission Report on Scaling Behaviour Change"
  8. 8inlineThe Guardian, 23 Nov. 2015 "Paris Climate Talks: Developed Countries Must Do More than Reduce Emissions"
  9. 9inlineLos Angeles Times, 15 Sept. 2019 "Editorial: Wealthy Countries Are Responsible for Climate Change, But It’s The Poor Who Will Suffer Most"
  10. 10inlineCSO Equity Review (2019) "Can Climate Change Fuelled Loss and Damage Ever be Fair?" Manila, London, Cape Town, Washington, et al.: CSO Equity Review Coalition.
  11. 11inlineThe New Republic, 8 Dec. 2015 "Who’s Most Responsible for Climate Change?"
  12. 12webReport of the Conference of the Parties on its sixteenth session, held in Cancun from 29 November to 10 December 2010UNFCCC
  13. 13webGreen Climate Fund - report of the Transitional CommitteeUNFCCC
  14. 14webGreen Climate Fund names Mafalda Duarte as new Executive DirectorGreen Climate Fund — March 14, 2023
  15. 15journalSummary of the Durban Climate Change Conference: 28 November - 11 December 2011IISD — 13 December 2011
  16. 16inlineSchalatek, L., Stiftung, H., Nakhooda, S. and Bird, N., February 2011, The design of the Green Climate Fund , Overseas Development Institute. Retrieved 7 April 2012
  17. 17webGreening of the economy to spur job creationI4Dn3Cr@an — 2011-11-25
  18. 18newsGreen Climate Fund must take risks in warming fight, says new headMeghan Rowling — 2019-05-03
  19. 19webClimate Finance UNFCCC
  20. 20webClimate Finance: Essential Components, Existing Challenges, and On-going InitiativesIndraStra Global
  21. 21webUN Secretary-General's High-level Advisory Group on Climate Change Financing (AGF)UN
  22. 22inlineInstitute for Policy Studies (2013), Green Climate Fund, A Glossary of Climate Finance Terms. Retrieved 23 July 2013
  23. 23inlineGreen Climate Fund, Status of Pledges. Retrieved 22 March 2020
  24. 24newsA green climate fund but no money at DurbanNitin Sethi — 6 December 2011
  25. 25newsAs Trump Exits Paris Agreement, Other Nations Are DefiantSomini Sengupta, Melissa Eddy et al. — 1 June 2017
  26. 26webResource mobilizationGreen Climate Fund — 5 November 2020
  27. 27webCountriesGreen Climate Fund — 2022-07-29
  28. 28webWhere's the Money? The Elephant in the BoardroomBrandon Wu — Huffington Post — 2013
  29. 29webSongdo Fallout: is green finance a red herring?Oscar Reyes — Foreign Policy in Focus — 2013
  30. 30web3 ways country ownership is being put to the test with climate change fundingAnnaka Peterson Carvalho — Oxfam America
  31. 31webCivil Society Pushes for More Active Participation in Green Climate FundEmilio Godoy — Inter Press Service — 2013
  32. 32newsWhy We Should Kill The Green Climate FundAssaad W. Razzouk — 8 November 2013
  33. 33webThe Little-Known Fund at the Heart of the Paris Climate AgreementOscar Reyes — Foreign Policy in Focus — 2016
  34. 35inlineFriends of the Earth USA (2013), Pro-poor Climate Finance: Is There a Role for Private Finance in the Green Climate Fund?, Friends of the Earth USA. Retrieved 24 July 2013
  35. 36journalA Realistic Policy on International Carbon OffsetsM. W. Wara — April 2008
  36. 37webFailed Mechanism: Hundreds of Hydros Expose Serious Flaws in the CDMInternational Rivers — Internationalrivers.org
  37. 38newsUN green climate fund can be spent on coal-fired power
  38. 39webGreen Climate Fund Can Be Spent To Subsidise Dirty CoalCleantechnica — 7 April 2015
  39. 40newsGreen fund investing in the wrong projects, says former chiefPilita Clark — 6 September 2016
  40. 41journalThe Green Climate Fund and the Future of Environmental GovernanceAbbott, K.W., Gartner, D. — 2011