At COP 16, Parties, in decision 1/CP.16 established a Green Climate Fund
(GCF) as an operating entity of the Financial Mechanism of the Convention under Article 11. The GCF
will support projects, programmes, policies and other activities in developing country Parties. The
Fund is governed by the GCF Board.
The assets of the GCF will be administered by a trustee only for the purpose of, and in accordance
with, the relevant decisions of the GCF Board. The World Bank was invited by the COP to serve as the
interim trustee of the GCF, subject to a review three years after operationalization of the Fund. The
COP also decided that the GCF was to be designed by the Transitional Committee
(TC). At COP 17 held in Durban, the COP adopted decision 3/CP.17,
in which Parties welcomed the report of the TC ( FCCC/CP/2011/6 and
Add.1) and approved the Governing Instrument for the GCF. Parties, at COP 18, endorsed the consensus decision of
the GCF Board to select Songdo, Incheon, Republic of Korea as the host of the GCF. At COP 19, Parties
welcomed the establishment of the independent GCF secretariat and the selection of the Executive
Director of the GCF by the GCF Board. Furthermore, Parties provided initial guidance to the GCF.
At COP 20, Parties welcomed with appreciation the successful and timely initial resource mobilization
process of the GCF that led to the mobilization of USD 10.2 billion to date by contributing Parties,
enabling the GCF to start its activities in supporting developing country Parties of the Convention,
and making it the largest dedicated climate fund. Parties further requested the GCF to ensure that
the ongoing resource mobilization efforts are commensurate with the ambitions of the Fund, and called
for contributions by other developed country Parties, as well as invites financial inputs from a
variety of other sources, public and private, including alternative sources, throughout the initial
resource mobilization process. Parties urged the GCF, the Interim Trustee, and contributors to
confirm the pledges in the form of fully executed contribution agreements/arrangements, and took note
of GCF Board decisions regarding the formal replenishment process for the Fund.
COP 20 also requested the Board to accelerate the operationalization of the adaptation and mitigation
windows, and to ensure adequate resources for capacity-building and technology development and
transfer, consistent with paragraph 38 of the Governing Instrument. Furthermore, the COP requested
the Board to accelerate the operationalization of the private sector facility, and to complete its
work related to policies and procedures to accept financial inputs from non-public and alternative
sources, the investment and risk management frameworks of the GCF, the impact analysis on its initial
results areas, including options for determining Board level investment portfolios across the
structure of the Fund, and the approval process of the Fund, including methodologies for selecting
programmes and projects that best achieve the objectives of the Fund.
Additionally, the Board was requested to, among other things, accelerate the implementation of its
work programme on readiness and preparatory support, ensuring that adequate resources are provided
for its execution, including from the initial resource mobilization process, providing urgent support
to developing countries, in particular the least developed countries, small island developing States
and African States, led by their national designated authorities or focal points to build
institutional capacities. Furthermore, the COP requested the Board to, in the implementation of the
accreditation framework, to pay adequate attention to the priorities and needs of developing country
Parties, including the least developed countries, small island developing States and African States,
emphasizing the need to provide readiness support to those national and regional entities eligible
for fast-tracking that request it.
The GCF, as operating entity of the Financial Mechanism, was also encouraged to adress, as
appropriate, the recommendations contained in the annex to decision 9/CP.20
in its future work, particularly with regard to the complementarity between the operating entities of
the Financial Mechanism. Furthermore, the GCF was requested, as operating entity of the Financial
Mechanism, to consider the recommendations contained in the annex to decision 4/CP.20
in the context of its work on adaptation. COP 20 also requested the Adaptation Committee and the Least
Developed Countries Expert Group, in collaboration with the GCF, to consider how to best support
developing countries Parties in accessing funding from the GCF for the process to formulate and
implement national adaptation plans, and to report thereon to the Subsidiary Body for Implementation at
its forty-second session ( decision 3/CP.20).
Arrangements between the Conference of the Parties and the Green Climate Fund
At COP 18 held in Doha, Parties recognized that the provisions contained in Article 11, paragraph 3,
and decision 3/CP.17 and the governing instrument of the GCF contained in the annex to 3/CP.17 form the basis for
the arrangements between the COP and the GCF. The COP requested the Standing
Committee on Finance and the GCF Board to develop arrangements between the COP and the GCF for
agreement by the Board and subsequent agreement by COP 19.
At COP 19, Parties agreed to the arrangements between
the COP and the GCF to ensure that the GCF is accountable to and functions under the guidance of
the COP to support projects, programmes, policies and other activities in developing country Parties
using thematic funding windows, which were approved by the GCF Board at its fifth meeting.