Green Climate Fund (GCF)

Why in news?

• Rich countries risk missing their goal to provide $100 billion a-year by 2020 to help poorer nations combat climate change, after funding slowed in the year since President Donald Trump vowed to pull the U.S. out of the global Paris deal.

What is it?

• Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change.
• GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change.
• It aims to deliver equal amounts of funding to mitigation and adaptation.
• GCF is based in Incheon, South Korea.

Formation:

• It was set up by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) in Cancun in 2010, as part of the Convention’s financial mechanism.

Financing:

• The fund has set itself a goal of raising $100 billion a year by 2020, as per the Paris Climate Deal of 2015.
• The World Bank was invited by the COP to serve as the interim trustee of the GCF.
• It receives funding from donor nations that pledge contributions towards the GCF.
• The Fund accepts contributions from developed countries party to the UN Framework Convention on Climate Change (UNFCCC) as well as public, non-public, and alternative sources.

Prelims Question

Consider the following statements regarding Green Climate fund(GCF):
1.It was established after Paris Climate summit of UNFCC
2.World Bank is the interim trustee of the fund.
Which among the above statements is/are correct?
(a)1 only 
(b)2 only 
(c)Both 1 and 2
(d)Neither 1 nor 2

Answer to prelims question