Berlin– The third meeting of the Board of the GreenClimate Fund takes place in Berlin, Germany from 12 to 15 March with discussion of the Fund’s business model high up the agenda.
The Green Climate Fund was established by the United Nations Climate Change Convention to channel support to the developing world to address climate change. The Green Climate Fund is expected to be one of a
range of funding channels to deliver on the long-term goal to mobilize US$ 100 billion per annum in climate finance by 2020 from a range of sources, both public and private. The Fund’s Board, equally composed of representatives of developed and developing countries, is currently in its start-up phase and is focusing its work on establishing the systems and policies to manage financial flows in order to have a global impact on climate change.
‘We need to put systems in place which are robust enough to handle a significant flow of climate funding– and flexible enough to ensure that these funds are spent effectively on adaptation and mitigation throughout the developing world,’ commented Zaheer Fakir, Green Climate Fund Board Co-Chair, on the eve of the Berlin Board meeting. ‘The challenge is to get the Fund up and running as soon as possible with the institutional structures, policies, and safeguards to target funding based on country owned strategies.
‘The impact of climate change in developing countries can limit or even reverse their growth,’ added Ewen McDonald, Green Climate Fund Board Co-Chair. ‘The Fund needs to be innovative to help developing countries undertake action to move their economies onto climate-resilient and low-emission development pathways. A key part of this will be the Fund’s ability to leverage significant funding from both public and private sources. Discussions in Berlin around the design of the Private Sector Facility will be critical in this regard.’
Alongside discussions on a business model framework, the three-day Board meeting is also expected to advance the plans to establish the Fund within its host city of Songdo, Incheon City, Republic of Korea, as well as adopting additional rules of procedure for the Board, and begin discussing how best to mobilize resources for the Fund.