The Green Climate Fund now totals $10.14billion, with contributions from 24 countries, after an announcement that they reached the minimum initial funding goal of $10billion at the 20th Conference of the Parties of the UN Framework Convention on Climate Change (COP20) in Lima, Peru.
‘The $10 billion threshold reached here at COP20 is a landmark achievement. I warmly welcome the new pledges from Belgium and Australia and congratulate them for their leadership,’ said Hela Cheikhrouhou, Executive Director of the Fund.
The Fund can now start using the pledged amount to help developing countries tackle the effects of climate change, and also to make investments in low-emission projects, helping those countries develop without a reliance on fossil fuels. The money is seen as key to achieving a meaningful binding agreement on climate action at the 2015 Climate Summit in Paris, France.
‘The Fund is ready to disburse through a network of your highest performing implementation and financing partners, public and private, local, regional and international,’ said Hela Cheikhrouhou, in a speech at COP20.
‘An innovative feature of this Fund is that it enables a range of entities to be accredited, such as government agencies, NGOs and private sector,’ she added. ‘The Fund will disburse through these accredited entities grants, loans, equity and guarantees. These instruments will remove specific bottlenecks faced by climate‐smart investments. This will catalyze a significant multiplier effect. Our savings will at last be put towards building a low emission and climate resilient future.’
The next stage of the Green Climate Fund is to raise $100billion a year, from public and private sources, by 2020.