Background

The Global Environment Facility (GEF) serves as an operating entity of the Financial Mechanism under the Convention. The relationship between the Conference of Parties (COP) to the UNFCCC and the GEF Council was agreed in a memorandum of understanding (MOU) contained in decision 12/CP.2 and decision 12/CP.3. As outlined in the MOU and pursuant to Article 11.1 of the Convention, the COP provides guidance to the GEF, as an entity entrusted with the Financial Mechanism of the Convention, on policies, programme priorities and eligibility criteria for funding. 

Furthermore, the GEF, as well as the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) administered by the GEF, serve the Paris Agreement, in accordance with Article 9, paragraph 8, of the Paris Agreement and decision 3/CMA.1 paragraph 7. Guidance to the GEF 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.