Green Climate Fund is the largest climate fund in the world. GCF launched its initial resource mobilization in 2014, and gathered pledges worth USD 10.3 billion. Starting from 2020 the total funding will be about 100 billion USD. It is also a financial mechanism, established under the United Nations Framework Convention on Climate Change.
The GCF was established by 194 governments at the Sixteenth Conference of Parties of the United Nations Framework Convention on Climate Change in Cancun in 2010. Its goal is to reduce greenhouse gas emissions in developing countries, and to help adapt vulnerable societies to the unavoidable impacts of climate change.
It is headquartered in Songdo, South Korea.
Key bodies of the GCF are the Secretariat and the Board. Secretariat is as fully independent body which is responsible for executing the day-to-day operations of the Fund. It services and is accountable to the Board. The Board is charged with the governance and oversight of the Fund's management. It takes decisions on financing climate projects. It consists of 24 members equally representing developed and developing countries. It normally meets three times per year.
The projects, financed by the Green Climate Fund can be directed at:
- Mitigation of climate change by reducing or preventing greenhouse gas emissions;
- Adaptation to climate change by adapting to current or expected negative climatic impacts and conditions;
- Mitigation and adaptation to climate change.
GCF strives towards a 50:50 balance between mitigation and adaptation in financing.
Depending on the size and scale, the following are financed by the Fund:
- Micro projects – up to 10 million USD;
- Small projects – from 10 to 50 million USD;
- Medium projects – from 50 to 250 million USD;
- Large projects – from 250 million USD.
The GCF financing can be in the form of grants, loans, equities and guarantees.
There are three major actors, who play significant role in interacting with the GCF. These are National Designated Authority or Focal Point, Accredited Entity and Implementing Entity.
1. National Designated Authority (NDA):
- is a national coordinating authority, which is entitled to interact with the GCF;
- provides strategic oversight of implementation of projects/programmes in accordance with country's priorities;
- submits nomination letters to the GCF for accreditation of national organization to receive direct access to the resources of the GCF;
- convenes stakeholders on the national level;
- approves readiness support programme;
- provides no-objection letters for projects and programmes.
National Designated Authority in Uzbekistan is the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan.
2. Accredited entity:
- develops and submits funding proposals for projects and programmes;
- oversees project and programme management and implementation, presents financial and technical reports required by the GCF;
- mobilizes private sector capital and/or own resources for blending with the GCF;
- deploys and administers a range of financial instruments.
3. Implementing Entity:
- implements projects supported by the GCF under supervision and overall management of an accredited entity;
- develops and submits funding proposals for projects and programmes through an accredited entity.