The Green Climate Fund (GCF) is the world’s largest dedicated fund for climate action serving the 2015 Paris Agreement. It is a global fund that aims to respond to climate change by investing in low-emission and climate-resilient projects and programs developed by the public and private sectors to contribute to countries’ climate change priorities.

 

The fund was established by 194 governments at the 16th Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC) in 2010 under the Cancun Agreement to limit or reduce greenhouse gas (GHG) emissions in developing countries (mitigation), to help vulnerable societies adapt to the impacts of climate change (adaptation) or to contribute to cross-cutting scenarios that deliver both mitigation and adaptation. Please visit: Green Climate Fund

 

The GCF finances low-emissions and climate-resilient projects and programs under eight strategic impact areas:

 

 

GCF Financing

What size of projects are financed by the GCF?

The proposed project or program submitted will fall into one of the four GCF project size categories.

US$0-10 million

Micro

US$10-50 million

Small

US$50-250

Medium

US$>250 million

Large

 

GCF deploys climate finance through diversified financial instruments, including soft loans for seniors and subordinated loans, equity, guarantees, and grants. These financial instruments allow GCF to tailor its financial support to the needs of public, private, and non-governmental projects. 

 

The cards below highlight the various types of financing offered by the fund.

Readiness and Preparatory Support

DESCRIPTION/ OBJECTIVE

To strengthen institutional capacities of the NDA and national entities

BENEFICIARIES

The NDA can select a Delivery Partner to implement activities approved under the Readiness and Preparatory Support Programme.

AMOUNT

 Up to USD 1 million per year per country (grant).

 Up to USD 3 million for the formulation of adaptation plans (USD 3 million and no further replenishment) (grant).

 Up to USD 1 million per year per country (grant).

 Up to USD 3 million for the formulation of adaptation plans (USD 3 million and no further replenishment) (grant).

Project Preparation Facilities (PPF)

DESCRIPTION/ OBJECTIVE

To support project and program preparations, from the initial stages, consisting of project identification, conceptualization and development, and establishment of the enabling environment, to mid and late stages, including project due diligence and project structuring.

BENEFICIARIES

Accredited Entities: The funding window is open to request from all Accredited Entities. However, it is especially targeted at supporting DAEs and micro- to small-sized category projects.

AMOUNT

 Up to USD 1.5 million available from each request in the form of grants and repayable for private sector projects.

Program or Project Funding

DESCRIPTION/ OBJECTIVE

To support climate change mitigation and adaptation projects.

BENEFICIARIES

Accredited Entities

AMOUNT

 In accordance with the AE’s project size category.

Simplified Approval Process

DESCRIPTION/ OBJECTIVE

Small-scale and low-risk projects or programs. They should be ready to scale-up and have the potentials to transform, adapt, and/or mitigate the impacts of climate change.

BENEFICIARIES

National Designated Agency and Accredited Entities: DAEs and NDAs are especially encouraged to submit Concept Notes.

AMOUNT

 Up to USD 10 million (fund requested to the GCF)

Private Sector Facility

DESCRIPTION/ OBJECTIVE

To unlock private sector investment in climate finance.

BENEFICIARIES

Private sector players and intermediaries: Entities should have accreditation or should work with Accredited Entities.

AMOUNT

 In accordance with the AE’s project size category.

REDD+ Result-Based Payments Pilot Program (Jordan ineligible)

DESCRIPTION/ OBJECTIVE

Countries that have completed the first two phases of REDD+ for results generated from the end of 2013 to the end of 2018 are eligible to apply for phase 3 funding through this pilot facility.

BENEFICIARIES

Accredited Entities: in close consultation with NDA and REDD+ entity/focal point.

AMOUNT

 In accordance with the AE’s project size category Allocation of USD 500 million, until the last GCF Board Meeting in 2022.

Enhancing Direct Access

DESCRIPTION/ OBJECTIVE

Country driven programmatic approach. There will be no submission of individual projects/programs to GCF because decision making will be devolved to the country level.

BENEFICIARIES

DAEs or prospective DAEs nominated by the NDA to implement the program. Entities are requested to first submit a Concept Note to get feedback and further guidance before working on a full proposal. In addition, applicants will need to be accredited before being able to access the fund.

AMOUNT

 In accordance with the AE’s project size categoryAllocation of USD 200 million.