Background

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. The relationship between the COP and the GCF is stipulated in the arrangements between the two, as contained in decision 5/CP.19. 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.

Furthermore, the GCF serves the Paris Agreement in accordance with Article 9, paragraph 8, of the Paris Agreement. Guidance to the GCF on the policies, programme priorities and eligibility criteria related to the Paris Agreement is provided by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) and is transmitted by the COP. The COP decided that the guidance to the entities entrusted with the operations 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, paragraph 9, of the Paris Agreement states that the institutions serving this 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 (LDCs) and small island developing States (SIDS), in the context of their national climate strategies and plans.