Climate finance

Rightly or wrongly, developing countries may see themselves in competition for financing from the $10 billion Green Climate Fund (GCF)—the flagship fund for adaptation and mitigation investment under the UN Framework Convention on Climate Change.

Some countries have been particularly successful in tapping GCF funds; for instance, Small Island states in the Caribbean and Asia-Pacific have to date received roughly $380 million in GCF approvals, equivalent to around $130 per capita.

For other countries, it has been more challenging. To meet the GCF Board’s increasingly stringent eye, projects must demonstrate a robust climate rationale, including establishing the climate investment need and justifying the proposed activities.

Business-as-usual projects are being increasingly rejected. A country’s success in attracting climate finance will likely depend on the enabling environment it has in place to facilitate climate projects. —