The Green Climate Fund (GCF) is the world’s largest dedicated fund helping developing countries respond to climate change. It was set up by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010. The GCF’s Initial Resource Mobilisation (IRM) in 2014 raised $10.3 billion in pledges, of which $8.2 billion were confirmed through contribution arrangements and after accounting for variations in exchanges rates, $7.2 billion have been available for commitment. In December 2019 GCF concluded the first replenishment process with an additional $9.9 billion in pledges (as of August 2020).
Only Accredited Entities to GCF can access funding from GCF. IFC signed the Accreditation Master Agreement (AMA) with GCF on November 22, 2017, which means that IFC can seek GCF funding for programs and projects for blending for its investment operations.
The GCF seeks to have an impact within eight mitigation and adaptation results areas: Agriculture, Forestry and Other Land Use; Buildings, cities, industries and appliances; Ecosystems and ecosystem services; Energy; Health, food and water security; Infrastructure; Livelihoods of vulnerable communities; and Transport.
The partnership with GCF can enable IFC to develop transformative projects that can deliver climate impact on scale, blending scarce concessional funds to leverage significantly larger private sector resources to scale up climate-smart investments. IFC’s disciplined approach and strong governance for blended concessional finance can ensure GCF funding is utilized for private sector activities in a targeted and impactful manner