GCF Makes Progress Towards Initial Resource Mobilization
22 February 2014: At its 6th meeting, the Board of the Green Climate Fund (GCF) adopted a number of key decisions that will shape the GCF's work streams and activities as it moves forward in its operations.
The meeting, which convened from 19-21 February 2014, in Bali, Indonesia, discussed parameters and guidelines for allocating resources during the GCF's initial phase, including: equally balancing mitigation and adaptation funding over time; allocating 50% of adaptation funding to particularly vulnerable countries, such as least developed countries (LDCs), small island developing States (SIDS) and African countries; maximizing engagement with the private sector and providing incentives to shift to low-carbon development; and mainstreaming gender and defining a gender action plan by October 2014.
More specifically, in making progress on the requirements that were identified for initial resource mobilization, the Board addressed: issues related to support for low-carbon and climate-resilient development, including the result management, risk management, investment and accreditation frameworks; the approval process of proposals; the structure of the Private Sector Facility; and terms of reference for the Fund's independent evaluation and integrity units and redress mechanism.
The Board also: mandated the Secretariat to develop a comprehensive work programme on readiness and preparatory support, which will help developing countries reap benefits from the GCF; and decided the Fund would manage access to resources based on geographical balance and allocation across a broad range of countries, while maximizing the scale and transformational impact of the Fund's activities. At its next meeting, in May 2014, the Board is expected to take key decisions on the remaining essential requirements that will enable the Fund to receive, manage, programme and disburse funds.
Speaking during the event, Indonesian Vice-Minister of Finance Bambang Brodjonegoro expressed the hope that his country's contribution to the Fund of US$250,000 would support developing countries to prepare and finance emission reduction and adaptation programmes, and encouraged “more capable countries to consider making or adding to their pledges.”
The Board meeting follows the opening ceremony of the Fund's headquarters in Songdo, Republic of Korea, held in December 2013. The Fund, agreed to by the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC) in Cancun, Mexico, in 2010, aims to promote a shift towards low-emission and climate-resilient development pathways by providing support to developing countries to help limit or reduce emissions and to adapt to the impacts of climate change. [GCF Press Release, 18 February 2014] [GCF Press Release, 22 February 2014] [GCF Website] [6th Meeting of the Board's Agenda] [Meeting Website]