Green Climate Fund - Initial Resource Mobilization – Grant Contribution

This project represents Canada’s first contribution to the Green Climate Fund (GCF) which is a newly established institution that is the main financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). Canada has pledged $300 million to the GCF’s Initial Resource Mobilization period (2015-2018) comprising $190 million in grants and $110 million in a repayable contribution. Of the grant contribution $22 million may be used to absorb the risk of financial losses from non-performing loans made from Canada’s repayable contribution (“Canada’s Cushion”). On a grant-equivalent basis Canada is the tenth largest contributor to the GCF under its Initial Resource Mobilization period. By supporting the GCF Canada helps to promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change in the context of sustainable development. Through the GCF Canada supports increasing the impact of both adaptation and mitigation investments while promoting environmental social economic and developmental co-benefits and taking a gender-sensitive approach. As a member of the 24-member GCF Board Canada works toward helping countries that are the poorest and most vulnerable to the adverse effects of climate change - including least developed countries small island developing states and African states - as well as mobilizing private sector resources for climate friendly investments. Canada also works toward promoting the effective and efficient operationalization of the GCF including the establishment of robust policies and procedures consistent with international standards in support of developing countries’ mitigation and adaptation efforts.

The expected intermediate outcomes for this project include: (1) strengthened institutional and regulatory systems for low-emission and climate-responsive planning and development; (2) increased number of small medium and large low-emission power suppliers; (3) lower energy intensity of buildings cities industries and appliances; (4) increased use of low-carbon transport; (5) improved management of land or forest areas contributing to emissions reductions; (6) increased generation and use of climate information in decision-making; (7) strengthened adaptive capacity and reduced exposure to climate risks; and (8) strengthened awareness of climate threats and risk-reduction processes.