At COP 16 held in Cancun, by decision 1/CP.16, Parties established the Green Climate Fund (GCF) as an operating entity of the Financial Mechanism of the Convention under Article 11. The Fund is governed by the GCF Board and it is accountable to and functions under the guidance of the COP to support projects, programmes, policies and other activities in developing country Parties using thematic funding windows.

The GCF was designed by the Transitional Committee (TC) as per decision 1/CP.16, paragraph 109. Based on the report of the TC ( FCCC/CP/2011/6 and Add.1), at COP 17 held in Durban, Parties adopted decision 3/CP.17 and approved the Governing Instrument for the GCF.

The Governing Instrument for the GCF stipulates that the assets of the GCF will be administered by a trustee only for the purpose of, and in accordance with, the relevant decisions of the GCF Board. The World Bank was invited by the COP to serve as the interim trustee of the GCF, subject to a review three years after operationalization of the Fund. In 2015, the GCF Board invited the World Bank to continue serving as the Interim Trustee until a permanent Trustee is appointed ( Board decision B.08/22). The process to appoint the permanent Trustee should be finalized no later than the end of 2017.

At COP 18 held in Doha, Parties requested the Standing Committee on Finance and the GCF Board to develop arrangements between the COP and the GCF for agreement by the Board and subsequent agreement by the COP. Parties recognized that the provisions contained in Article 11, paragraph 3, and decision 3/CP.17 and the governing instrument of the GCF contained in the annex to 3/CP.17 form the basis for the arrangements between the COP and the GCF. At COP 19 held in Warsaw, Parties agreed to the arrangements between the COP and the GCF to ensure that the GCF is accountable to and functions under the guidance of the COP.

Parties, at COP 18, endorsed the consensus decision of the GCF Board to select Songdo, Incheon, Republic of Korea as the host of the GCF. At COP 19, Parties welcomed the establishment of the independent GCF secretariat and provided initial guidance to the GCF.

At COP 21 held in Paris, by decision 1/CP.21, paragraph 58, the COP decided that the GCF shall serve the Paris Agreement. The COP also decided that the guidance to the entities entrusted with the operation of the Financial Mechanism of the Convention in relevant decisions of the COP, including those agreed before adoption of the Paris Agreement, shall apply mutatis mutandis.

Article 9 of the Paris Agreement states that the institutions serving the Agreement, including the operating entities of the Financial Mechanism of the Convention, shall aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support for developing country Parties, in particular for the least developed countries and small island developing States, in the context of their national climate strategies and plans.

Guidance was provided by COP 23 to the GCF, as contained in decision -/CP.23 Report of the GCF to the COP and guidance to the GCF.

Additional guidance to the GCF, as an operating entity of the Financial Mechanism, was provided in the following COP 23 decision: Decision -/CP.23 Sixth review of the Financial Mechanism