The window of opportunity to tackle the climate crisis is steadily shrinking. It is still just about possible to limit global warming to 1.5°C – depending on the decisions we take today. The Green Climate Fund (GCF) is a crucial element of the historic Paris Agreement. Establishing the fund was an important concern of the developing countries; they have an equal say in deciding how the money is invested in climate change mitigation and adaptation projects in the Global South.
Solidarity with countries particularly affected by climate change
The GCF’s aim is to support developing countries, in particular, in realising their ambitions for a low-emission future. It also seeks to support regions and communities particularly affected by climate change in improving their response to the consequences of global warming.
To this end, the GCF provides grants, loans, guarantees and equity for specific programmes and projects. In Panama, Paraguay and Uruguay, it is investing in large-scale e‑bus fleets, the use of light commercial electric vehicles, and rapid charging infrastructure in order to reduce greenhouse gas emissions and create clean, reliable transport links between communities. In Bangladesh, affordable loans are provided to help households and SMEs finance solar installations. In other countries, the GCF is supporting the development of water recycling programmes to address water shortages.
In total, the measures supported by the GCF have so far made it possible to reduce carbon emissions by over 2.5 billion tonnes – more than three times the amount produced by Germany in a year. More than 200 projects have already been financed.
Germany’s responsibility for global climate action
Germany sits on the Board of the Green Climate Fund. Within the German Government, responsibility is shared between the Federal Foreign Office and the Federal Ministry for Economic Cooperation and Development. For the period from 2020 to 2023, Germany doubled its contribution to the GCF to 1.5 billion euro, putting it among the leading donors. It will increase its contribution again for the second replenishment of the GCF, which is currently underway to gather funding for the period from 2024 to 2027. Federal Chancellor Olaf Scholz has announced a sum of 2 billion euro.
More information can be found on the website of the Green Climate Fund