Climate Finance | Environment for UPSC 2024 (Pre & Mains) PDF Download

 Page 1


CLIMATE FINANCE 
Page 2


CLIMATE FINANCE 
INTRODUCTION 
The contribution of countries to climate change, and their 
capacity to prevent and cope with its consequences, 
varies enormously.  
The Convention and the Protocol therefore foresee financial 
assistance from Parties with more resources to those less 
endowed and more vulnerable.  
Developed country Parties (Annex II Parties) shall provide 
financial resources to assist developing country Parties in 
implementing the Convention. 
 To facilitate this, the Convention established a Financial 
Mechanism to provide funds to developing country 
Parties. 
Page 3


CLIMATE FINANCE 
INTRODUCTION 
The contribution of countries to climate change, and their 
capacity to prevent and cope with its consequences, 
varies enormously.  
The Convention and the Protocol therefore foresee financial 
assistance from Parties with more resources to those less 
endowed and more vulnerable.  
Developed country Parties (Annex II Parties) shall provide 
financial resources to assist developing country Parties in 
implementing the Convention. 
 To facilitate this, the Convention established a Financial 
Mechanism to provide funds to developing country 
Parties. 
INTRODUCTION 
The Convention, under its Article 11, states that the 
operation of the Financial Mechanism is entrusted 
to one or more existing international entities.  
The operation of the Financial Mechanism is partly 
entrusted to the Global Environment Facility (GEF).  
At COP 17 Parties decided to designate the Green 
Climate Fund (GCF) as an operating entity of the 
Financial Mechanism of the Convention, in 
accordance with Article 11 of the Convention.  
The Financial Mechanism is accountable to the COP, 
which decides on its climate change policies, 
programme priorities and eligibility criteria for 
funding. 
Page 4


CLIMATE FINANCE 
INTRODUCTION 
The contribution of countries to climate change, and their 
capacity to prevent and cope with its consequences, 
varies enormously.  
The Convention and the Protocol therefore foresee financial 
assistance from Parties with more resources to those less 
endowed and more vulnerable.  
Developed country Parties (Annex II Parties) shall provide 
financial resources to assist developing country Parties in 
implementing the Convention. 
 To facilitate this, the Convention established a Financial 
Mechanism to provide funds to developing country 
Parties. 
INTRODUCTION 
The Convention, under its Article 11, states that the 
operation of the Financial Mechanism is entrusted 
to one or more existing international entities.  
The operation of the Financial Mechanism is partly 
entrusted to the Global Environment Facility (GEF).  
At COP 17 Parties decided to designate the Green 
Climate Fund (GCF) as an operating entity of the 
Financial Mechanism of the Convention, in 
accordance with Article 11 of the Convention.  
The Financial Mechanism is accountable to the COP, 
which decides on its climate change policies, 
programme priorities and eligibility criteria for 
funding. 
FUNDS 
In addition to providing guidance to the GEF, 
Parties have established four special funds - 
the Special Climate Change Fund (SCCF), 
the Least Developed Countries Fund (LDCF), 
both managed by the GEF,  
and the GCF under the Convention; and 
the Adaptation Fund (AF) under the Kyoto 
Protocol. 
Page 5


CLIMATE FINANCE 
INTRODUCTION 
The contribution of countries to climate change, and their 
capacity to prevent and cope with its consequences, 
varies enormously.  
The Convention and the Protocol therefore foresee financial 
assistance from Parties with more resources to those less 
endowed and more vulnerable.  
Developed country Parties (Annex II Parties) shall provide 
financial resources to assist developing country Parties in 
implementing the Convention. 
 To facilitate this, the Convention established a Financial 
Mechanism to provide funds to developing country 
Parties. 
INTRODUCTION 
The Convention, under its Article 11, states that the 
operation of the Financial Mechanism is entrusted 
to one or more existing international entities.  
The operation of the Financial Mechanism is partly 
entrusted to the Global Environment Facility (GEF).  
At COP 17 Parties decided to designate the Green 
Climate Fund (GCF) as an operating entity of the 
Financial Mechanism of the Convention, in 
accordance with Article 11 of the Convention.  
The Financial Mechanism is accountable to the COP, 
which decides on its climate change policies, 
programme priorities and eligibility criteria for 
funding. 
FUNDS 
In addition to providing guidance to the GEF, 
Parties have established four special funds - 
the Special Climate Change Fund (SCCF), 
the Least Developed Countries Fund (LDCF), 
both managed by the GEF,  
and the GCF under the Convention; and 
the Adaptation Fund (AF) under the Kyoto 
Protocol. 
SPECIAL CLIMATE CHANGE FUND 
The Special Climate Change Fund (SCCF) was established 
under the Convention in 2001 to finance projects relating 
to: adaptation; technology transfer and capacity building; 
energy, transport, industry, agriculture, forestry and waste 
management; and economic diversification.  
This fund should complement other funding mechanisms for 
the implementation of the Convention. 
The Global Environment Facility (GEF), as an operating entity 
of the Financial Mechanism, has been entrusted to 
operate the SCCF.  
In 2004, the GEF Council approved a programming document 
which provides the operational basis for funding activities 
under the SCCF