Green Climate Fund Core Contribution 2024-2027

The mission of the Green Climate Fund (GCF) is to help developing countries reduce their greenhouse gas emissions (mitigation) and enhance their ability to respond to climate change (adaptation), striving for transformation change at scale. The GCF is the most important global climate fund. It opts for a resource allocation of 50% to mitigation and 50% adaptation, of which minimum 50% to the most vulnerable countries.

The fund can deploy a variety of financial instruments, including grants, concessional loans, debt, equity, and guarantees to maximize private co-investment. It can provide funds directly to accredited national entities which is expected to enhance country ownership and related capacity development.

Adressing climate change and managing natural resources sustainably is one of the top priorities of the Swiss International Cooperation Strategy 2021-2024. The GCF, being one of 16 priority multilateral organizations according to the above mentioned Swiss Strategy, is a key partner to achieve this objective. The GCF has a special focus on the needs of the most vulnerable developing countries. GCF further maximizes its impact by means of a genderresponsive approach – one of the cross-cutting themes in the Swiss Strategy.

Through GCF’s established corporate priorities on (1) mitigation, (2) adaptation and (3) private sector engagement, the GCF delivers on the priorities of Swiss International Cooperation, namely sustainable economic growth, reducing global risks and strengthing public services, as well as fostering peace and strengthing governance.

To date, the GCF has approved 228 projects totalling $12.7 billion, benefitting an anticipated 638 million people with increased resilience and avoiding 2.9 billion tonnes of CO2 equivalents (information based on ex-ante expected results, not ex-post verified).

Swiss contribution to the GCF is managed jointly by SDC, SECO and FOEN through the interdepartmental coordination platform PLAFICO. Achieved results are:

On the Board, Switzerland has been amongst the more active and influential members, focusing on key issues notably the new strategic plan (2024-2027), accreditation strategy and the re-accreditation of MDBs, process improvements, gender mainstreaming, private sector engagement and focus on vulnerable countries/groups.

Switzerland also actively engaged in in the development of the pilot programme for REDD+ result-based payments: A Swiss expert contributed to the development of the second phase of the REDD+ programme.

For the period 2024-27, the GCF will measure impact against three broad metrics at the institutional level:

• Progress on reducing global emissions effectively and efficiently, fostering adaptation and development co-benefits. 
• Progress on enhancing resilience of communities and infrastructure with a particular focus on the most vulnerable countries and people.
• Progress in supporting countries’ institutional, planning and programming  capacities to implement National Determined Contributions and National Adaptation Plans, especially the most vulnerable.

Switzerland will advocate and work formally and informally towards the following three outcomes – as jointly agreed by SDC, SECO and FOEN:

• Improved Governance, Efficiency and Transparency of the Fund: simplification of processes and delegation mechanisms
• A distinct profile and financing modalities: increased ownership, mobilisation of the private sector, climatenature and social-environmental co-benefits
• A portfolio that is results’ oriented: better reporting on impact, systematic inclusion of vulnerable groups and gender in project design

To date, 25 countries co-finance the GCF, with 5 of them pledging more than 1 billion US dollars (UK, FRA, DE, JAP, NOR), and 3 developing countries (KOR, ISR, MNG).

Developed countries closely coordinate formally and informally at and in between Board meetings. Board seat constituency coordination amongst Switzerland, FIN, HUN, MON and LIE (seat composition tbc) for submissions, in preparation and during meetings.