Green Climate Fund

Published purpose

This project represents Canada’s first contribution to the Green Climate Fund (GCF), which is a newly established institution that is the main financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). Canada has pledged $300 million to the GCF’s Initial Resource Mobilization period (2015-2018), comprising $190 million in grants and $110 million in a repayable contribution. Of the grant contribution, $22 million may be used to absorb the risk of financial losses from non-performing loans made from Canada’s repayable contribution (“Canada’s Cushion”). On a grant-equivalent basis, Canada is the tenth largest contributor to the GCF under its Initial Resource Mobilization period. By supporting the GCF, Canada helps to promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, in the context of sustainable development. Through the GCF, Canada supports increasing the impact of both adaptation and mitigation investments, while promoting environmental, social, economic and developmental co-benefits and taking a gender-sensitive approach. As a member of the 24-member GCF Board, Canada works toward helping countries that are the poorest and most vulnerable to the adverse effects of climate change - including least developed countries, small island developing states, and African states - as well as mobilizing private sector resources for climate friendly investments. Canada also works toward promoting the effective and efficient operationalization of the GCF, including the establishment of robust policies and procedures, consistent with international standards, in support of developing countries’ mitigation and adaptation efforts.