The green climate fund: A unique financing vehicle among international organizations

Global efforts to prevent catastrophic climate change have given rise to international collaboration, including between developed and developing countries. However, contentious issues around accountability for and financing of climate action remain. Within this context, this chapter explores how the Green Climate Fund (GCF) has navigated these issues to build collaboration and to effectively fulfill its mandate to accelerate low-emission and climate-resilient development in developing countries. The first section of this chapter outlines where GCF fits within the international climate change regime, including underlying principles. Section 1.2 then reviews key provisions of GCF’s Governing Instrument, including the composition of its Board and its financing sources. Section 2 of this chapter analyses the development of GCF’s capital raising processes, from the initial resource mobilization to the transition to a formal replenishment process. This section also examines how the organization has sought to balance diverse needs, including the need for oversight with accessibility of funding. The third section examines GCF’s resource mobilization policies in detail, to provide insight into how its unique mandate, governing structure and fundraising modalities are functionally supported and made operational. The fourth and final section concludes the analysis of GCF’s financing modalities and provides an indication of potential future directions for GCF.