Climate finance Green Climate Fund

Logo: Green Climate Fund
Logo: Green Climate Fund

The central pillar of multilateral climate finance is the Green Climate Fund (External link) (GCF). The decision to set up the fund was taken at the Cancún Climate Conference (COP16) in 2010. Its aim is to catalyse the transition to low-emission, sustainable development. It offers grant, loans, guarantees and equity for programmes that promote low-carbon economic development or substantially contribute to climate change adaptation. The GCF also partners with the private sector to mobilise further funding for mitigation and adaptation measures.

Development Minister Svenja Schulze speaks at the replenishment conference for the Green Climate Fund in Bonn.

Some 50 countries paid 19 billion US dollars into the GCF for its first two replenishment rounds in 2014 and 2019. Developing countries can use these resources to finance mitigation projects, adapt to climate change and build a low-carbon economy. Up to now, 228 projects have received funding – going in roughly equal measure to mitigation and adaptation activities. GCF projects shall help to reduce or prevent 2.9 billion tonnes CO2-equivalent emissions. Furthermore, GCF support is expected to boost the resilience of one billion people to the adverse effects of climate change.

The BMZ and the Foreign Office share responsibility for the GCF within the German government. Germany contributed 750 billion euros to the Fund's initial capitalisation. When it came to the first replenishment (External link) of the Fund (see this video (External link) from UN Secretary-General António Guterres) for the period 2020 to 2023, Germany doubled its contribution to 1.5 billion euros, making it one of the GCF’s biggest donors. Germany increased its contribution again for the ongoing second replenishment (External link) of the Fund for the period 2024 to 2027. Pledging up to two billion euros in May 2023, Germany was the first major donor to announce its contribution. Germany’s contribution to the GCF comes entirely from the BMZ’s budget.

On 5 October 2023, Germany hosted a high-level international replenishment conference in Bonn chaired by Development Minister Svenja Schulze. The conference’s aim was to generate attention for international climate action and mobilise commitments for the Green Climate Fund for the period 2024 to 2027.

As at: 29/09/2023