·       Established in 2010 under the Cancún Agreements, the Green Climate Fund (GCF) represents the world’s largest dedicated climate finance mechanism, aiming to mobilize resources for climate action in developing countries.

·       GCF operates as the financial arm of the United Nations Framework Convention on Climate Change (UNFCCC), with a core mandate to catalyse a transition towards low-emission and climate-resilient development pathways.

·       The fund’s Secretariat is headquartered in Incheon, South Korea, overseeing the implementation and management of climate finance initiatives.

Key Features and Principles:

·       GCF prioritizes the leadership of developing countries in determining climate finance priorities and implementing projects.

·       GCF allocates its financial resources equally between mitigation and adaptation efforts, ensuring a comprehensive approach to addressing climate change challenges.

·       GCF provides support through a range of financial instruments, including grants, concessional loans, guarantees, and equity investments, tailored to meet the diverse needs of recipient countries and projects.

Other Significant Climate Finance Mechanisms

·       Global Environment Facility (GEF): Established in 1992, GEF focuses on financing projects targeting global environmental issues, including climate change mitigation and adaptation.

·       Adaptation Fund: Founded in 2001, the Adaptation Fund provides financial assistance for concrete adaptation projects and programs in developing countries, particularly those vulnerable to climate impacts.

·       Climate Investment Funds (CIFs): CIFs, launched in 2008, operate as a multilateral financing mechanism supporting climate-resilient and low-carbon development initiatives across various sectors and regions.