Green Climate Fund

The Green Climate Fund (GCF) was established in 2010 during the 16th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) as an entity within the financial mechanism of the Convention.

In this context, the GCF serves as the primary multilateral fund for "climate finance," focusing on both mitigation and adaptation to climate change.

Its goal is to support the efforts of developing countries in addressing the challenge of global warming, either by reducing greenhouse gas emissions or promoting adaptation strategies.

In particular, within the framework of the UNFCCC financial mechanism, the GCF plays an innovative key role in leveraging public investments and stimulating the mobilization of resources, including from the private sector, towards investments in low-carbon and climate-resilient development.

Since 2015, the GCF has been periodically refinanced by donor countries, including Italy, specifically:

• Initial Funding Period (2015-2019) – (Initial Resource Mobilization): 9.3 billion US dollars from 49 donor countries and sub-national entities. Italy contributed 250 million euros.
• First Refinancing Period 2020-2023 (GCF-1): 9.9 billion US dollars from 31 donors. Italy contributes 300 million euros.
• Second Refinancing Period (2024-2027) ( GCF-2): 12.8 billion US dollars from 31 donors. Italy, through the intervention of Prime Minister Hon. Giorgia Meloni during COP28 in Dubai in December 2023, announced its intention to continue contributing to GCF-2 with a commitment of 300 million euros

The GCF aims to support developing countries in implementing strategic projects or programs aligned with their national climate plans and strategies under the Paris Agreement. Specifically, it focuses on the initiatives identified in their respective Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs), Nationally Appropriate Mitigation Actions (NAMAs), and National Adaptation Programmes of Action (NAPAs). To achieve this, the GCF may finance the full or incremental costs of such mitigation and adaptation activities and facilitate technology transfer, capacity building, and the preparation of national reports by developing countries.

The GCF funds projects through two funding windows: a) mitigation and b) adaptation activities, encouraging "cross-cutting" projects. For each thematic window, the following four specific result areas are identified.

• Mitigation: a) generation and access to energy; b) transportation; c) forests and land use; d) buildings, cities, industries, and equipment.
• Adaptation: a) health, water, and food security; b) living conditions of populations and communities; c) infrastructure and the built environment; d) ecosystems and ecosystem services.

GCF resources are provided through various financial instruments, including grants or mixed concessional instruments such as subsidized loans, private equity, and guarantees. Additionally, the GCF promotes further public and private co-financing for the activities it supports.

Project activities and operational policies are managed by the GCF Board, which consists of 24 members: 12 from developed countries (including Italy) and 12 from the various regional groups of developing countries.

The GCF Secretariat, based in Songdo (South Korea), oversees the technical management, operational monitoring of policies, programs, and projects, as well as ensuring compliance with environmental, social, and financial protection rules and managing risks.

For more general information, inquiries can be directed to the GCF Secretariat staff by writing to info@gcfund.org.

To date, the total value of the GCF project portfolio includes 297 approved projects in 133 developing countries, amounting to 16.6 billion US dollars in GCF resources and 62.7 billion US dollars in total, including co-financing. The expected impact of the GCF project portfolio is estimated to reduce and/or avoid 3.1 billion tonnes of CO2 equivalent emissions in terms of climate change mitigation and to benefit approximately 1.3 billion people, both directly and indirectly, through measures aimed at improving resilience to climate change as a result of the financed adaptation interventions.

Here, you can find more information about GCF projects and the evolution of its project portfolio.

The Governing Instrument of the Green Climate Fund (GCF) stipulates that access to the Fund’s resources must be through national, regional, and international entities (Accredited Entities – AEs) accredited by the Board. Accredited Entities, whether public or private, are considered legal entities accredited to the Fund by a decision of the Board, following a verification by the Secretariat of their institutional capacities with respect to the environmental, social, and financial safeguards outlined in the GCF policies. These safeguards ensure the entity’s capacity to submit financing proposals for specific projects to be funded by the GCF.

Accredited Entities thus play the role of managing the entire project cycle, from preparation to completion. They can also carry out these activities through specific Executing Entities (EEs) defined at the project proposal level.

To date, the GCF global partnership consists of approximately 140 Accredited Entities (see the list of all AEs).  

For Italy, Cassa Depositi e Prestiti S.p.A. is accredited to the GCF.

There are two ways to access funding, depending on the following two categories of Accredited Entities:

• Direct access: Recipient countries may nominate national, regional, and subnational implementing bodies for accreditation to receive funding. These bodies must be nominated by the Country Designated National Authority (NDA) or the Focal Point.
• International access: Recipient countries can also access the Fund through accredited international bodies, including United Nations agencies, multilateral development banks, international financial institutions, and regional institutions.

Additionally, the GCF Secretariat maintains a specific portal that provides updates on procurement and purchasing procedures for all goods and services needed for its operations. These procedures vary depending on the value and type of goods and services requested. Starting in August 2024, it will be possible to register on the GCF supplier portal.