31 January 2022.
The Green Climate Fund is invested in developing countries. It helps the countries to fight against climate change.
What are the issues around GCF?
- The countries are not receiving Green Climate Fund, especially those in Africa. This is due to the lengthy and complicated process of accessing the fund.
- The issue of GCF has been in the forefront in almost every international climate meet. During the COP26 held in Glasgow in 2021, the developing countries roared their concerns around the issue. The developing countries called out that the developed nations failed to deliver the promise of 100 billion USD goal.
About Green Climate Fund
- It is based in Incheon, South Korea. The main aim of the fund is to support programmes, policies and other climate activities in developing countries. It was established within the United Nations Framework Convention on Climate Change (UNFCCC).
- US and European Union contribute to the fund largely. 54% of the climate mitigation cost comes from these countries.
- The World Bank was chosen as a temporary trustee in the initial stages of the fund.
- In 2015 board meet, the GCF failed to cut the fund allocated for the fossil fuel projects.
- This included the projects in China, Japan and Saudi Arabia.
- Around 154 countries are eligible to receive the fund.
- Between 2015 and 2019, countries received 2.5 billion USD.
- Of this 54% went to the Small Island Developing States, African countries and Least Developing Countries. But still 16 out of 37 eligible countries did not receive the funding.
Why are some countries not receiving GCF?
- Poor institutional capacity. Some countries suffer from poor governance and human capacities in their administrations.
- For instance, Somalia, Eritrea and Yemen.
- Some others like Afghanistan are facing violent conflicts. Such countries did not receive GCF.
- The GCF board is of the view that the allocated funds in these countries are not reaching the people.