- The Green Climate Fund (GCF) was adopted as a financial mechanism of the UN Framework Convention on Climate Change (UNFCCC) at the end of 2011 in CoP 16.
- The GCF is intended to support projects, programs, policies and other activities in developing country for combating climate change.
- The GCF finances activities to both enable and support adaptation, mitigation (including REDD+), technology development and transfer (including CCS), capacity-building and the preparation of national reports.
- The important distinction of GCF is that it has an independent legal status and personality and nationally designated authorities have a paramount role to play. This has been achieved after many rounds of different negotiations.
- The GCF follows a ‘country-driven approach’, which envisages effective involvement of various stakeholders at all levels and also enables the developing countries to evolve their climate policy keeping in consideration their immediate development priorities like poverty reduction and improving standards of living for a large proportion of their population. The effectiveness with which a country is able to tap the resources from the GCF and use them effectively is dependent on how well the country’s government and its various institutions have prepared themselves to access the Fund.
- India has moved forward in this regard by selecting the Ministry of Environment, Forests and Climate Change as India’s Nationally Designated Authority (NDA) for the GCF, which will recommend to the Board of the GCF funding proposals in the context of national climate strategies.
- Further NABARD has been accredited by Green Climate Fund (GCF) Board as one of the National Implementing Entity (NIE) for GCF in India.
- NABARD will be responsible for management and oversight of project implementation, which includes the origination and preparation of a funding proposal, the subsequent management of the necessary stages of the implementation process until its conclusion (project management) on behalf of GCF, and reporting obligations.
- It is based in South Korea and governed by a Board of 24 members and initially supported by a Secretariat.
- The World Bank serves as the interim trustee of the GCF, and the Fund functions under the guidance of and remains accountable to the UNFCCC Conference of Parties.
- The Fund will promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, taking into account the needs of those developing countries particularly vulnerable to the adverse effects of climate change.
- It is an international environmental treaty negotiated at the Earth Summit in Rio de Janeiro.
- The framework set no binding limits on greenhouse gas emissions for individual countries and contains no enforcement mechanisms. instead, the framework outlines how specific international treaties (called or “Agreements”) may be negotiated to set binding limits on greenhouse gases.
- Implementing entities are the national, regional and multilateral institutions accredited by the Adaptation Fund Board to receive direct financial transfers from the Fund in order to carry out adaptation projects and programs.
- Reducing Emissions from Deforestation and Forest Degradation (REDD) is an effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. “REDD+” goes beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks.