Design Challenges for the Green Climate Fund
Climate Finance Policy Brief No.4
The design of the GCF has to address a large number of concerns, the details of which remain unresolved within the negotiations. Issues relating to what role it will play in providing sustainable finance at scale; how it will fit into the existing development assistance and climate financing architecture; how it will allocate finance to developing countries; and how finance will be delivered effectively, all remain to be clarified. This represents an ambitious agenda and much progress will need to be made quickly if a working proposal is to be put to the delegates at the next COP meeting.
This paper offers an early contribution to the debate by highlighting some of the more pressing design issues and describing the implications of these features. We assess the Fund according to the following three core functions:
Governance: how the funds will be managed
Sourcing: how funds will be raised – who will pay and how
Disbursement: how funds will be delivered and distributed
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