Published: 14 May 2024
Context and Rationale
The Green Climate Fund (GCF) is one of the primary sources of global climate finance. This fund is a crucial component of the historic Paris Agreement and assists developing countries in implementing climate change response activities. The GCF is among the key international funds from which climate-vulnerable countries like Bangladesh mobilize finances to conduct climate change response activities. As climate finance pledged by developed countries is voluntary, the supply of funds is insufficient, and access to climate finance for vulnerable countries, including Bangladesh, is uncertain. Developing countries require USD 1,300 billion annually until 2030 to address the climate crisis, and the GCF is one of the primary channels for delivering funds to climate-affected countries.
The GCF has deemed 154 countries worldwide as 'eligible to receive funding'. Among these, there are a total of 121 accredited entities in 129 countries. These include 63 National Direct Access Entities (DAEs), 14 Regional DAEs, and 44 International Access Entities. From 2015-2023, the GCF approved USD 13.5 billion for 243 projects. Conversely, USD 3.8 billion has been disbursed.
Sustainable Development Goal (13.a) emphasizes the importance of industrialized countries providing USD 100 billion annually to assist affected countries in combating climate change, including mobilizing capital from the GCF. The GCF Global Programming Conference, 2022, emphasized accrediting a greater number of institutions from developing countries as Direct Access Entities to the GCF and accelerating their project acquisition. At the United Nations Climate Ambition Summit, 2023, various reforms for the GCF were announced, including enabling it to manage USD 50 billion, and accelerating the accreditation process, project approval, and fund disbursement.
Among various stakeholders working with climate funds, including national institutions, there is uncertainty and concern regarding accreditation, project approval processes, and fund disbursement for accessing the GCF. According to the GCF Second Performance Review-2023, the process of accessing GCF funds is complex and time-consuming. Although various reports have discussed challenges related to the fund's accreditation process, project approval, and disbursement, there is a lack of comprehensive research on governance in its operations. TIB has ongoing research and advocacy activities related to national and international climate funds and financing, including GCF matters. In continuation of this, this research initiative has been undertaken due to the necessity of observing the overall state of governance concerning access to the GCF for climate-vulnerable developing countries.
Research Objectives
The main objective of this research is to review governance in the process of accessing GCF funds for vulnerable developing countries like Bangladesh. Additionally, the specific objectives of the research are:
- ▪ To analyze the policy framework for the accreditation and financing of national and international institutions for GCF funds;
- ▪ To identify the challenges in accessing GCF funds; and
- ▪ To propose recommendations based on the research findings.
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