To tackle the climate crisis, the Green Climate Fund needs serious money
(Context, 24 Oct 2023) Rich countries must step up with more investment in climate action to achieve a safe and prosperous future for all.
Confronting the climate crisis requires a coordinated global response, with funding playing a pivotal role. Within the complex landscape of institutions delivering climate finance, the Green Climate Fund (GCF) is the largest international fund dedicated to tackling climate change.
With $18.6 billion of capital, it supports developing countries in reducing greenhouse gas emissions and adapting to the increasingly severe impacts of a heating world. This year, 25 countries have pledged a further $9.3 billion to the Fund’s second replenishment.
Unfortunately, commitments are falling short. This year’s GCF pledges are less than the $10 billion committed in 2014 and 2019, with fewer countries stepping up. Furthermore, funding is not keeping up with surging inflation. To keep up with rising prices, countries would need to pledge 25% more than they did in 2019.
The GCF represents strong value for money. For every dollar it provides, it raises nearly $3 from private and public sources. Since 2015, the GCF has financed 228 projects in 129 countries, which are projected to increase the climate resilience of 1 billion people and reduce greenhouse gas emissions by 2.9 billion tonnes—equivalent to the annual emissions of 776 coal power plants.