Green Climate Fund Core Contribution 2020-2023 (GCF-1)


The Green Climate Fund (GCF) finances low-emission and climate-resilient development projects and programs with a focus on the most vulnerable countries. The Swiss contribution to GCF’s first formal replenishment period 2020-23 places Switzerland amongst the top ten donors based on per capita contributions. Switzerland advocates in the GCF governing board for impact-oriented projects with maximum development co-benefits, social inclusion and effective private sector engagement. 

Country/region Topic Period Budget
Global
Climate change and environment
Environmental policy
01.09.2020 - 31.12.2023
CHF 150'000'000
Background

The GCF supports developing countries in reducing their greenhouse gas emissions (mitigation) and enhancing their ability to respond to climate change (adaptation), striving for transformation change at scale. The GCF opts for a resource allocation of minimum 50% to adaptation, of which minimum 50% to the most vulnerable countries.

Designed as an operating entity of the United Nations Framework Convention on Climate Change's (UNFCCC) financial mechanism, it is the most important global climate fund. The fund aims at driving a paradigm shift in the global response to climate change.

The GCF is the first climate fund with a dedicated Private Sector Facility, which shall foster high level of private sector engagement, at international and domestic level in recipient countries. The fund can deploy a variety of financial instruments, including grants, concessional loans, debt, equity, and guarantees to maximize private co-investment.  

Objectives

Adressing climate change and managing natural resources sustainably is one of the top priorities of the Strategy for International Cooperation 2021-2024. The GCF, being one of 15 priority multilateral organizations according to the Swiss strategy, is a key partner to achieve this objective. A special focus by GCF is on the needs of the poor and the most vulnerable developing countries. GCF further maximizes its impact by means of a gender-responsive approach – one of the cross-cutting themes in the aboved mentioned Swiss Strategy 2021-24.

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.

Medium-term outcomes

For the period 2020-23, 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.

×     Paradigm shift and long-term sustainability is achieved though enhanced country ownership and focused country programming; including enhanced domestic private sector engagement.

Results

Expected results:  

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

×     Swiss Co-Chair of Private Sector Advisory Group: Switzerland facilitated and co-influenced expert input and strategic guidance on private sector engagement to the Board and the Fund’s Private Sector Facility.

×     Engagement in the development of a pilot programme for REDD+ result-based payments[1]: Two Swiss experts contributed to the development of a REDD+ pilot programme (USD 500 Mio envelop).

×     Gender Policy and Action Plan: Swiss engagement for updated, more ambitious Gender Policy and Action Plan, adopted in 2019. 

Replenishment negotiations and decision-making procedure: During the GCF-1 replenishment negotiations, Switzerland, jointly with other donors, successfully pushed for an enhanced governance mechanisms (voting procedure adopted in 2019) and for focused programming, increased quality of future operations and revision of roles and responsibilities between the Board and the Executive Director/Secretariat.

 

[1] REDD+ (Reducing Emissions from Deforestation and Forest Degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries): A UNFCCC concept to provide financial incentives for the reduction of emissions of greenhouse gases stemming from tropical deforestation and forest degradation as a climate change mitigation measure. More information: redd.unfccc.int


Results from previous phases:   Since its operationalization in 2015, the GCF has approved nearly 130 projects and programmes in more than 100 countries, benefitting an anticipated 350 million people with increased resilience and avoiding 1.6 billion tonnes of CO2-equivalents. Key GCF policies and frameworks have been adopted, such as a decision-making procedure, a results and risk management framework, a gender policy, amongst others. The Secretariat (currently at 300 staff) has considerably improved its capacities after challenging first years due to its location (Songdo, Korea). In October 2019, the first formal replenishment has been conluded successfully.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Other International Organization
  • Green Climate Fund


Other partners

Other donors

Main donors in order of ranking are, based on cumulative contributions since 2014: UK, FRA, DE, JAP, US[1], SWE, NOR.

[1] US did contribute USD 1 billion to the Initial Resource Mobilization (IRM) period of the GCF (2015-18), but did not announce any contribution to GCF-1.

Coordination with other projects and actors Developed countries closely coordinate formally and informally at and in between Board meetings. Board seat constituency coordination amongst Switzerland, FIN, HUN, MON and LIE for submissions, in preparation and during meetings.
Budget Current phase Swiss budget CHF   150'000'000 Swiss disbursement to date CHF   34'350'000
Project phases Phase 2 01.09.2020 - 31.12.2023   (Current phase) Phase 1 01.04.2014 - 31.12.2017   (Completed)