Green Climate Fund urges nations to accelerate signing of contributions
With 42 per cent of climate pledges converted into contribution agreements as of April 30, 2015, the Green Climate Fund is now urging nations to urgently finalise their agreements so as to ensure that fund allocation for low-emission and climate-resilient projects and programmes can be allocated before the 21st Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) in Paris to be held later this year.
The Green Climate Fund has signed US$ 4 billion equivalent in contributions as of end of last month – an amount that represents 42 per cent of the amount that was committed during the Fund’s initial pledging conference in 2014. The GCF is authorised to allocate resources once at least 50 percent ($4.7 billion) of the total amount pledged at GCF’s High?Level Pledging Conference in Berlin in November 2014 has been made available.
A total of 33 governments made a pledge to the Green Climate Fund (GCF) to date, including 8 representing developing countries. The objective is for all pledges to be converted into contribution agreements within one year from the time at which they are made. The status as of April 30 can be found here.
Héla Cheikhrouhou, Executive Director of the GCF expressed her views on the progress and thanked all the governments that have been able to conclude their contribution agreements on time. Cheikhrouhou has now called upon all other governments who are yet to conclude their contribution agreements and has urged them to urgently finalize their agreements to ensure that fund allocation can happen as planned.
Following countries have either in part or in full concluded their agreements: Austria, Belgium, Chile, Czech Republic, Denmark, France, Germany, Iceland, Latvia, Lichtenstein, Luxemburg, Netherlands, New Zealand, Norway, Panama, Poland, Sweden, Switzerland and the United Kingdom.
Contributions per capita vary significantly among contributing countries, with Sweden providing the largest contribution to GCF per capita.
In 2010, countries agreed at COP 16 in Cancun, Mexico, that a Green Climate Fund would be established to scale up new and additional, predictable and adequate climate financing to developing countries. The Cancun Agreements specified that a significant share of new multilateral funding for climate action should flow through this Fund, in quantities considerably larger than the initial pledges made to GCF to date, which account to US$ 10.2 billion equivalent.
As the designated financial mechanism of UNFCCC, the Fund has a central role to play in mobilizing the financial resources required to enable a paradigm shift towards low?emission and climate? resilient pathways in developing countries, to achieve the goal of keeping a global temperature rise under 2 degrees Celsius.
“GCF is a key indicator for new climate finance resources, making them visible and possible to track,” said Ms. Cheikhrouhou. “This is a test for governments to deliver on their vision to establish GCF as the primary global investment vehicle on climate finance under the UNFCCC,” she explained. “Climate finance and the Green Climate Fund are a decisive building block of the Paris universal climate agreement,” emphasized Ms. Cheikhrouhou, adding that “the success of the Fund is an incentive for the outcome of the Paris agreement.”