Climate financing and green climate fund: A negotiation perspective

Abstract

The objective of the project is to understand the issues related to climate financing. The report studies the role of UNFCCC in this regard. The convention provides for various financial mechanisms that facilitate the transfer of funds from developed nations to developing nations, in order to combat and reduce the effects of climate change. The project looks, in detail, at two such funds – Green Climate Fund and the Global Environmental Facility. The composition and functioning of these funds has been looked in some detail. This is followed by an analysis of the achievements of the funds so far and the value of resources that have been mobilized in regards of financing projects globally. The study also looks into the current issues with the composition and functioning of the Green Climate Fund. The second part of the project is a comparative analysis of projects funded by the GEF in three nations namely India, China and Philippines. The projects belong to different focal areas. The two focal areas which have been emphasized on are Biodiversity and Climate Change. The extent to which the GEF has been successful in mobilizing funds in these projects has been analyzed by comparing the leverage ratio values of the projects in these countries. It was found that these leverage values vary substantially across these countries, for the same focal areas. The study concludes by comparing this performance of GEF across countries, in the areas of Biodiversity and Climate Change.