At COP 16 held in Cancun, by decision 1/CP.16, Parties established the Green Climate Fund (GCF) as an operating entity of the Financial Mechanism of the Convention under Article 11. The Fund is governed by the GCF Board and it 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.
The GCF was designed by the Transitional Committee (TC) as per decision 1/CP.16, paragraph 109. Based on the report of the TC (FCCC/CP/2011/6 and Add.1), at COP 17 held in Durban, Parties adopted decision 3/CP.17 and approved the Governing Instrument for the GCF.
The Governing Instrument for the GCF stipulates that 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. In 2015, the GCF Board invited the World Bank to continue serving as the Interim Trustee until a permanent Trustee is appointed (Board decision B.08/22). The process to appoint the permanent Trustee should be finalized no later than the end of 2017.
Guidance was provided by COP 23 to the GCF, as contained in the following decision: decision X/CP.24 Report of the GCF to the COP and guidance to the GCF.
Updated: 23 January 2019