The Green Climate Fund (GCF) is the world’s largest climate fund, mandated by the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) to support developing countries to raise and realize their Nationally Determined Contributions (NDC) ambitions toward low-emissions, climate-resilient pathways. The GCF Special Fund was established by AIIB to manage and deploy the concessional funds that the Bank receives as an International Access Entity of the GCF.
GCF provides concessional financial support through a flexible combination of grants, debt, guarantees, and equity instruments to finance impactful climate-aligned (mitigation and adaptation) projects in developing countries.
GCF’s mitigation projects seek to reduce the release of greenhouse gas emissions, or to increase the capacity of carbon sinks, while GCF’s adaptation projects invest in adaptation and resilience activities, prioritizing funding for particularly vulnerable people and communities who suffer the most from climate change impacts.
GCF aims for a 50:50 balance between mitigation and adaptation investments, which cover eight result areas. The eight result areas can be found here.
In addition, the GCF supports the provision of technical assistance for project and programme preparation through its Project Preparation Facility (PPF).
Funding from the GCF is available to AIIB Members that have designated a National Designated Authority (NDA) or Focal Point (FP). For project and programme proposal submission, the GCF has six main investment criteria following their Investment Framework that focuses on impact potential, paradigm shift potential, sustainable development potential, needs of the recipient, country ownership, and efficiency and effectiveness.
