CLIMATE & DEVELOPMENT FINANCE | Global Development Policy Center (2024)

FAQs

How does GCF funding work? ›

A range of financing instruments

GCF can structure its financial support through a flexible combination of grant, concessional debt, guarantees or equity instruments to leverage blended finance and crowd-in private investment for climate action in developing countries.

Climate financing serves as a critical pathway to invest in the climate adaptation and resilience efforts of conflict-affected and climate-vulnerable countries. Without adequate climate action, communities become increasingly vulnerable to climate shocks like floods and droughts.

The GCF is currently the world's largest dedicated multilateral climate fund and the main multilateral financing mechanism to support developing countries in achieving a reduction of their greenhouse gas emissions and an enhancement of their ability to respond to climate change.

The Green Climate Fund was established by 194 countries party to the UN Framework Convention on Climate Change in 2010. It is designed as an operating entity of the Convention's financial mechanism and is headquartered in the Republic of Korea.

GCF's mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF has a portfolio of USD 13.5 billion (USD 51.9 billion including co-financing) delivering transformative climate action in more than 120 countries.

These are loans for climate change mitigation and adaptation activities that differ from traditional loans in that they have longer repayment periods and lower interest rates, among other preferential conditions. Grants and donations.

At the UNFCCC COP21 in 2015, Parties decided to set a New Collective Quantified Goal (NCQG) on climate finance prior to 2025, amounting to at least USD 100 billion per year and taking into account the needs and priorities of developing countries.

70+ Countries

A global leader in climate finance, the Climate Investment Funds (CIF) is the largest multilateral climate fund focused on transformational climate innovation in 72 middle- and low-income countries.

The greatest common factor (GCF) is the largest whole number which is shared by given numbers. For example, common factors of 10 and 20 are 1, 2, 5 and 10, but the highest of those is 10; therefore, the greatest common factor of 10 and 20 is 10.

The greatest common factor (GCF) of a set of numbers is the largest factor that all the numbers share. For example, 12, 20, and 24 have two common factors: 2 and 4. The largest is 4, so we say that the GCF of 12, 20, and 24 is 4. GCF is often used to find common denominators.

What is the GCF useful for? ›

Hint: The greatest common factor, or GCF, is the greatest factor that divides two numbers. We use the greatest common factor many times in real life. We can simplify the given fraction to its simplest form or ratio by finding the greatest common factor of the numerator and the denominator.

GCF is a main operating entity under the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC).

Mafalda Duarte, Executive Director. Mafalda Duarte is the Executive Director of the Green Climate Fund, the world's largest multilateral climate fund, since August 1, 2023.

GCF Global Learning, doing business as Goodwill Community Foundation, operates as a non-profit organization. The Organization offers jobs, training, flood relief materials, serving children and adults with disabilities, and related services.

Types of Startup Funding

Equity financing involves selling a portion of a company's equity in return for capital. Debt financing involves the borrowing of money and paying it back with interest. A grant is an award, usually financial, given by an entity to a company to facilitate a goal or incentivize performance.

The Readiness and Preparatory Support Programme (the Readiness Programme) is a funding modality designed to assist developing countries to enhance their weaknesses, challenges, and gaps in the areas of institutional capacities, governance mechanisms, and planning and programming frameworks so that they may effectively ...

The Investment Framework establishes the Fund's investment policies, investment strategy and portfolio targets, and investment guidelines, establishing the definitions of and metrics for applying GCF's 6 investment criteria: Impact potential, Paradigm-shift potential, Sustainable Development potential, Needs of the ...

Adaptation Fund: a pioneer in climate

With over US$ 1.1 billion allocated, the Adaptation Fund gives developing countries full ownership of adaptation projects, from planning through implementation, while ensuring monitoring and transparency at every step.