Why in the news?

• Thirteen countries announced a plan at the COP30 to set up a national platform for “Climate and Nature Finance” in coordination with the Green Climate Fund.

Green Climate Fund (GCF)

• What is it?:
  • The Green Climate Fund (GCF) is the largest dedicated multilateral climate fund in the world.
  • Serves as the financial mechanism of both the UNFCCC and the Paris Agreement.
• Establishment: Established in 2010 at UNFCCC COP-16 (Cancún)
• Mandate:
  • Support developing countries in:
    • Mitigation – reducing greenhouse gas emissions.
    • Adaptation – building resilience to climate impacts.
  • Promote low-emission, climate-resilient development pathways.
  • Operates on the principle of Common but Differentiated Responsibilities (CBDR)
• Governance Structure:
  • GCF Board: 24 members
    • 12 from among the developed countries
    • 12 from among the developing countries
  • Supported by the GCF Secretariat (based in Songdo, South Korea).
  • Guided by the Conference of Parties (COP).
• Funding Sources:
  • Contributions from developed nations
  • Voluntary contributions from developing nations
  • Private sector participation
  • Alternative instruments (green bonds, results-based payments)
• India and the GCF:
  • India is one among the current board members of GCF.
  • India has multiple National Implementing Entities (NIEs) accredited to access GCF funds, such as NABARD and SIDBI.
  • India accesses GCF financing for:
    • Climate-resilient agriculture
    • Water management
    • Renewable energy
    • Coastal resilience
    • Capacity building and early warning systems
  • India emphasises equity, CBDR, and predictable financing under GCF.
  • India has urged developed nations to meet the USD 100 billion per year commitment and to scale up finance post-2025.