The contribution of countries to climate change, and their capacity to prevent and cope with its
consequences, varies enormously. The Convention and the Protocol therefore foresee financial
assistance from Parties with more resources to those less endowed and more vulnerable. Developed
country Parties (Annex II Parties) shall provide financial resources to assist developing country
Parties in implementing the Convention. To facilitate this, the Convention established a Financial
Mechanism to provide funds to developing country Parties.
The Convention, under its Article 11, states that the operation of the Financial Mechanism is
entrusted to one or more existing international entities. The operation of the Financial Mechanism is
partly entrusted to the Global Environment Facility (GEF). At COP 17
Parties decided to designate the Green Climate Fund (GCF)
as an operating entity of the Financial Mechanism of the Convention, in accordance with Article 11 of
the Convention. The Financial Mechanism is accountable to the COP, which decides on its climate
change policies, programme priorities and eligibility criteria for funding.
The Kyoto Protocol also recognizes, under its Article 11, the need for the Financial Mechanism to
fund activities by developing country Parties.
In addition to providing guidance to the GEF, Parties have established four special funds: the
Climate Change Fund (SCCF), the Least
Developed Countries Fund (LDCF), both managed by the GEF, and the GCF under the Convention; and the Adaptation Fund
(AF) under the Kyoto Protocol.
At COP 16 Parties decided to establish the Standing
Committee on Finance to assist the COP in exercising its functions in relation to the Financial
Mechanism of the Convention.
Launched at COP 17 and extended for one year at COP 18, the work programme on long-term finance
concluded its work at COP 19 in Warsaw. COP 19, in decision 3/CP.19, included activities on long-term
climate finance for the period 2014-2020. These include biennial submissions by developed country
Parties on their strategies and approaches for scaling up climate finance from 2014 to 2020,
in-session workshops to facilitate deliberations on long-term climate finance and biennial high level
ministerial dialogues on climate finance starting in 2014. More information here.
Funding to climate change actvities is also available through bilateral,
regional and multilateral channels. More information on funding is available here.