Current Affairs 2022: Green Climate Fund

The GCF aspires to finance both adaptation and mitigation equally, with the least developed nations and emerging economies receiving 25% of the total funding.

Green Climate Fund

Green Climate Fund (GCF) is a distinctive global platform that invests in reduced emissions and is resilient to weather pattern development to tackle climate change. GCF was established by 194 countries (that are parties to the United Nations) to help underprivileged communities manage the inevitable impacts of climate change by limiting or reducing greenhouse gas (GHG) emissions in emerging countries. Aware of the severity and complexity of the situation, the GCF has been tasked with making a significant contribution to a coordinated global climate change impact.

The objective of the Green Climate Fund

The GCF intends to guide developing nations in achieving their climate goals. The fundamental concept is to ensure that global prosperity remains consistent with climate change. Developing nations want a demand-driven funding vehicle, in which initiatives and operations are chosen based on requirements.

Developing nations are responsible for determining the necessities of administration and management of the GCF. Developed and developing nations make the decisions together. The GCF aspires to finance both adaptation and mitigation equally, with the least developed nations and emerging economies receiving 25% of the total funding.

GCF Board

The GCF Board puts in place standard operating procedures and policies, such as scheduling, project cycle, management, and financial planning, as part of its mission. The Board also establishes strategies that steer the Fund's overall operations. These procedures and policies come together to produce and create the foundation for implementing the GCF's Regulatory Structure.

The Board of Directors has approved the GCF Strategic Vision, which outlines the Foundation's long-term objectives, priorities of the foundation and operational priorities for the present operating phase. The preliminary initiative for the Initial Resource Mobilisation phase was established in 2014. ). 

GCF national policies typically consist of a combination of top-level initiatives approved by the Board to regulate a specific subject issue, related decisions of the board that accept the policies and it may include other additional policy provisions, as well as other regulatory frameworks (such as standards and recommendations) that give more detail on how guidelines should be successfully implemented.

Green Climate Fund’s Utility in International Parlance

• Because of its regulatory framework, the GCF plays an important role in facilitating emerging countries in obtaining funds for high-impact projects.
• Organising funds at scale to integrate economic development goals that come under the Paris Agreement, adaptation & mitigation plans, and other national sustainable development planning.
• Since the start of the lockdown crisis, the GCF has allocated more than approximately three billion dollars to global climate-related initiatives. 
• The industry-specific programming methodology of the Climate Investment Funds (CIF) is a crucial and complementary role to the GCF. The CIF distributes funds rapidly, operates efficiently and has a proven record of accomplishment in integrated financial management.
• Between 2021 and 2025, the United Kingdom has planned to increase its very own environmental expenditure to 16 billion dollars, with the ratio of climate change adaptation and mitigation strategies.
• Climate financing is critical for maintaining global development progress accomplished over the last few decades.
• The United States has agreed to provide 100 billion dollars per year for climate financing. Countries decided at COP21 in Paris to continue raising 100 billion dollars every year through 2025. 
• The agreement includes a statement that funds can emerge from a variety of places. To put things in perspective, 100 billion dollars is just 0.7 % of the 15 trillion dollars in stimulus measures proposed by industrialised countries in response to Coronavirus pandemic.
• NDCs, or Nationally Determined Contributions, are the declarations of countries' efforts to reduce their emissions and respond to the effects of climate change. NDCs are important to the Paris Agreement and in achieving these long-term objectives. 
• NDCs represent each country's attempts to eliminate its emissions and respond to climate change consequences. Each participant is entitled by the Paris Agreement to establish and announce the NDCs that they expect to attain. NDCs are received and recorded by the UNFCCC in a public register.
• GCF investments are guided by the concept of country ownership, which helps developing countries achieve their NDC goals by supporting their own aspirations for low-emission, climate-resilient development.

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About the Author

Ponnila SM is pursuing MBA from Thiagarajar School of Management. Writing is her passion, and she feels it allows her to explore different words and put them together to form meaningful sentences.

 

 

 

 

 

 

 

 

 

Note: The views expressed in this article are solely the author’s own and do not reflect/represent those of Shiksha.