A poster at the Delegation Pavilion at COP29 highlighting the urgency of fulfilling financial commitments to drive impactful climate actions. Picture Credit: Aishwarya Bajpai/IPS
By Aishwarya Bajpai
BAKU, Nov 22 2024 (IPS)
The Green Climate Fund (GCF) negotiations brought attention to the progress, challenges, and future strategies for enhancing its effectiveness in fostering a just and sustainable energy transition.
The draft negotiations acknowledged significant milestones achieved by the GCF.
With a total approved funding of USD 15.9 billion across 286 projects in 133 developing countries, the GCF continues to be a critical source of adaptation and mitigation financing.
Efforts to boost inclusivity have led to 139 entities being accredited, 89 of which are direct access entities. This demonstrates the GCF’s commitment to ensuring that resources are accessible to nations and organizations that need them most.
Additionally, the approval of 115 grants for readiness support, including national adaptation plans, underscores the Fund’s focus on bolstering countries’ capacity to plan and implement climate-resilient policies. These developments reflect the growing momentum to scale up finance for climate action.
One of the notable highlights of the draft negotiations was the emphasis on mobilizing private sector investments.
The GCF’s 2023 portfolio commitments saw a USD 2.1 billion growth, including USD 917.4 million allocated to 10 new private sector projects. These efforts have expanded the private sector portfolio to USD 5 billion, which has mobilized an additional USD 17.5 billion.
Innovative financial instruments, such as private equity, have proven effective in leveraging funds. For instance, every dollar invested by the GCF in certain mitigation sectors is expected to mobilize six times the committed capital.
Such strategies are pivotal in bridging the financing gap for developing countries, enabling them to transition to low-carbon pathways.
The negotiations also highlighted the need to ensure a geographically balanced distribution of GCF resources. Exploring regional presence in all developing country regions was a key recommendation.
This approach aims to enhance accessibility and foster stronger regional partnerships, particularly in underserved areas.
Furthermore, the Indigenous Peoples Advisory Group has played an instrumental role in enhancing engagement with Indigenous communities, ensuring their inclusion in GCF operations.
The Fund is also committed to supporting adaptation initiatives, with a focus on implementing national adaptation plans in alignment with its Strategic Plan for 2024–2027.
Despite the progress, challenges remain in streamlining access to funds and ensuring timely disbursements. The negotiations called for measures such as clear project approval timelines, transparent guidelines, and tailored support for Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
Simplifying funding mechanisms and addressing capacity gaps are essential to make climate finance more equitable and impactful.
Another critical focus area was enhancing gender responsiveness. The draft emphasized updating the GCF’s Gender Action Plan and aligning it with the UNFCCC’s broader gender framework. Incorporating Indigenous knowledge and respecting their rights were also highlighted as priorities for the Fund’s decision-making processes.
IPS UN Bureau Report
IPS UN Bureau, IPS UN Bureau Report, COP29, Baku, Azerbaijan,
