The Global Environment Facility (GEF) is the financial mechanism for the United Nations Framework Convention on Climate Change and provides funding to cover the "incremental" or additional costs associated with transforming climate protection projects in developing countries into ones with global environmental benefits. It also provides funding for actions to protect bio­diver­sity, international waters and the ozone layer, as well as actions on harmful chemicals and land degradation. Germany sits on and has one vote in the Council, the main governing body of the GEF.

In the fourth replenishment (GEF-4) (2006-2010), Germany committed 295 million US dollars, with around one third of this figure earmarked for climate protection.

Germany is the third largest donor to the GEF after the USA and Japan, with a share of about 12 per cent (2006-2010).

In addition, the GEF has set up two funds which support adaptation to climate change in developing countries: the Least Developed Countries Fund (LDCF), with a current total funding volume of around 170 million US dollars, and the Special Climate Change Fund (SCCF) with total funding of 100 million US dollars. The German government is one of the main contributors to these Funds.