Climate finance Global Environment Facility

Logo: Global Environment Facility (GEF)
Logo: Global Environment Facility

The Global Environment Facility (External link) (GEF) was established in 1991 and is one the main multilateral funds for protecting the global environment. It serves as financing instrument for six United Nations environmental conventions and agreements, including the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD).

The GEF is based on a partnership with 18 implementing organisations. The World Bank, UNDP and UNEP have been involved from the outset and have since been joined successively by 15 other organisations: ADB, AfDB, BOaD, CAF, Conservation International, DBSA, EBRD, FAO, FECO, FUNBIO, IDB, IFAD, IUCN, UNIDO und WWF. Other non-governmental organisations and national and bilateral implementing organisations are engaged in implementing GEF projects.

In the 8th replenishment period (July 2022 to June 2026), the GEF has available funding of 5.33 billion US dollars for new projects and programmes. With a contribution of 700 million euros, Germany is the largest donor for this replenishment period, followed by Japan, the USA and Sweden. Within the German government, the BMZ has lead responsibility for the GEF and represents Germany on the GEF Council.

The GEF finances global environmental protection measures in developing countries in the areas of:

  • biodiversity
  • climate
  • land degradation
  • international waters
  • chemicals (protection of the ozone layer and protection against persistent organic pollutants)

Least Developed Countries Fund (LDCF)

The Least Developed Countries Fund (External link) (LDCF) was established at COP7 in 2001 and is under the authority of the GEF. Its initial purpose was to assist least developed countries in preparing their National Adaptation Programmes of Action (NAPAs).

Since 2009 the Fund promotes concrete adaptation projects guided by National Adaptation Plans (NAPs). Germany made a fresh pledge of nine million euros at COP27, bringing its total commitment to the Fund from BMZ resources up to 424 million euros and making it the largest donor to the LDCF followed by Great Britain and Sweden.

Special Climate Change Fund (SCCF)

The Special Climate Change Fund (External link) (SCCF) was established at COP7 2001, in parallel with the LDCF. It focuses on adaptation, technology transfer and capacity-building. At COP27 overall pledges to the Fund totalled 35 million US dollars. Germany is contributing ten million euros from the BMZ budget for 2023.

Together, both funds have deployed more than two billion US dollars in grants for some 500 projects benefitting more than 65 million vulnerable people. Furthermore, the two funds have contributed to improving the climate resilience of more than 14 million hectares of land.

As at: 29/09/2023