Green Climate Fund
A multilateral fund created at COP16 in Cancún in 2010 to finance mitigation and adaptation in developing countries, based in Songdo, South Korea.
Rich countries committed to mobilizing climate finance for developing countries, but a multilateral channel was needed in which recipients would have a say. The Green Climate Fund is that channel: its board is evenly split between developed and developing countries, and it finances through grants, loans, guarantees and equity, aiming for a balance between mitigation and adaptation. Its resources depend on periodic replenishments, and therefore on donors' political will, which can reverse. For insurance, it cofinances climate risk transfer mechanisms in vulnerable countries. Its dependence on pledges leaves it exposed to the political risk of donor states.
Created in Cancún in 2010, the Fund set up its headquarters in Songdo and approved its first eight projects in November 2015. The United States had pledged 3 billion dollars in the first 2014 resource mobilization; one billion was paid before President Trump announced in 2017 that payments would end.
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