19.8 ndian onom
(i) sources of funding, terms of funding gcf
and purpose of funding in addition to It was established as an operating entity of the
resources being committed/disbursed/ financial mechanism of the UNFCCC in 2011
new. and is expected to be a major channel for climate
(ii) while defining climate finance, it is also finance from developed to developing countries.
important to define what cannot be It has so far been pledged US$10.2 billion by
counted towards climate finance. 38 governments. These include some developing
(iii) aid money meant for development countries with small contributions. The highest
contribution of US$3 billion has been announced
purpose should not be counted as climate
by the USA, followed by Japan (US$1.5 billion),
finance. With reference to funds provided
the UK (US$1.2 billion), France (US$1.03
for multiple purposes, only the share billion) and Germany (US$1.0 billion). The
provided solely for climate change should initial resource mobilization period extends
be included under climate finance. from 2015 to 2018. At the 11th GCF board
(iv) systems should be in place to check for meeting (November 2015), the board approved
double counting or treatment of ODA as commitment of US$168 million to eight specific
climate finance. projects, subject to certain conditions being
There is an even greater gap in tracking met by the project proponents. The board aims
to approve US$2.5 billion in commitments to
adaptation finance and segregating it from
additional projects in 2016.
development funds as a whole—as a result, very
often the entire amount allocated to a project is gef
erroneously treated as adaptation finance. Any
The GEF (Global Environment Facility) was
climate finance tracking exercise needs to carefully
established as a pilot programme for environmental
account for these problems. protection. The current project cycle is GEF-6 over
the years 2014-18. In 1992, when the Biodiversity
globAl climAte funDs and Climate Change Conventions were adopted at
Depending on the participating countries, global Rio de Janeiro, the GEF was adopted as a financial
climate funds can either be multilateral or bilateral mechanism for helping developing countries meet
depending on. The funds may further be classified their financing needs for achieving their climate
according to their area of focus, namely mitigation, change goals. As of November 2015, the GEF
adaptation or REDD (reducing emissions from has directly invested a total of US$14.5 billion in
deforestation and forest degradation). Currently, 3946 projects in 167 countries.
the Green Climate Fund (GCF) is the largest,
with pledges amounting to US$10.2 billion. The sustaInablE dEvElopmEnt and
second largest is the Clean Technology Fund clImatE chanGE In thE IndIan
(CTF) with pledges amounting to US$5.3 billion. contExt
With the capitalization of the GCF and the sunset In the past two decades, the key environmental
clause of the CTF, there is ambiguity about the challenges in India have been sharper. The State
role of the CTF in the climate finance architecture of the Environment Report by the MoEF clubs the
post-2020. issues under five key challenges faced by India—