To address the growing need of developing countries vulnerable to climate change in its mitigation and adaptation efforts, multiple channels have been set up through which climate finance flows.
Details about Climate Funds
The table shows some of the available bilateral and multilateral funds, both within and external of the financial mechanisms established by the UNFCCC and the Paris Agreement. The information comes from the OECD Climate Fund Inventory, Climate Funds Update and Financing Options Decision-Guide for Climate Activities in the Caribbean: Identifying financing needs and financing options.
|Funds (in million)
|Information from: (1) OECD Climate Fund Inventory (http://www.oecd.org/environment/cc/database-climate-fund-inventory.htm); (2) Climate Funds Update (https://climatefundsupdate.org/the-funds/); (3) Financing Options Decision-Guide for Climate Activities in the Caribbean: Identifying financing needs and financing options (GIZ, 2015)
|The fund finances projects and programmes that help vulnerable communities in developing countries which are parties to the Kyoto Protocol adapt to climate change effects. The fund is suitable for to the Caribbean because it has ecosystem-based approaches and direct access and access through multilateral channels is possible.
|Clean Technology Fund (CTF)
|One of two multi-donor Trust Funds within the Climate Investment Funds, promoting scaled-up financing for demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings. Suitable for Caribbean countries in a regional context for projects which target a Caribbean specific technical issue.
|Global Environment Facility (GEF6)
|The Global Environment Facility provides funding to developing countries to meet the objectives of the international environment conventions and agreements. The GEF Trust fund was established in 1992 during the Rio Earth Summit. The GEF gets their funding from 39 donor countries including Argentina, Japan, Australia, etc. The GEF has programs that prioritise Small Island Developing States and has a large Caribbean Portfolio.
|Global Climate Change Alliance (GCCA)
|An initiative formed to provide grants to mainly small island developing states (Small Islands Developing States: A distinct group of developing countries facing... More) and Least Developed Countries (LDCs) to increase their resilience against climate change. It does this by mainstreaming climate change into poverty reduction and development efforts, increasing resilience to climate related shocks and stresses, and supporting the creation and implementation of adaptation and mitigation strategies.
Disaster risk reduction
|Global Energy Efficiency and Renewable Energy Fund (GEEREF)
|It invests in private equity funds that specializes in providing equity finance to small and medium sized clean energy projects in developed countries. The funds provided focus on renewable energy and energy efficient projects which use proven technology. It is suitable for Caribbean states with a strong private sector seeking funding for medium to large scale projects.
|Green Climate Fund
|It is the largest global climate fund with the goal to help developing countries in their mitigation and adaptation efforts to promote a paradigm shift to low-emission and climate-resilient development. 50% of its resources is designated for Least Developed Countries, Small Island Developing States and African States. It is currently active in the Caribbean.
|International Climate Initiative (IKI)
|IKI funds projects that focus on mitigating greenhouse gases, adapting to the impacts of climate change, conserving natural carbon sinks, and conserving biodiversity. The initiative is an important component of Germanys climate financing and the funding components in the framework of the Convention on Biological Diversity. Appropriate for pilot projects with the potential for upscaling. Project sizes are suitable for small to medium economies, making IKI relevant for the Caribbean which is already active in the region.
|EUR 120 million annually
|German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)
|Aims to accelerate low carbon development to keep the globally averaged temperature rise below 2 degrees Celsius by financing measures that shift challenging sectors in a country towards a sustainable low carbon pathway. It does this by providing funding to transformational parts of Nationally Appropriate Mitigation Action (NAMA) plans, which are projects, programmes, or policies, that shifts a sector in a country onto a low carbon development.
|USD 205 million
|German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and the Department of Energy and Climate Change (DECC) of the United Kingdom (UK)
|Caribbean Catastrophe Risk Insurance Facility (CCRIF)
|It is a regional catastrophe fund specifically for Caribbean governments to limit the financial impact of natural events such as hurricanes and earthquakes. This is done by the provision of financial liquidity when a policy is triggered.
Disaster risk reduction
|USD 52 Million
|IRENA / Abu Dhabi Fund for Development
|This is a partnership between the two organisations to promote renewable energy projects in developing countries. The facility helps these countries access low cost capital for renewable energy projects to increase energy access, improve livelihoods and advance sustainable development.
|USD 350 million
|International Renewable Energy Agency (IRENA)