The green climate fund (GCF), established as a result of the Durban talks last year for easy access to funds for developing countries tackling climate change, has found interest from six countries?Germany, Switzerland, Namibia, Mexico, Korea and Poland.
The six countries have expressed interest to host the fund referring to the ability to recognise its legal capacity, privileges and immunities along with administrative and logistical support.
The fund was set up to raise $100 billion by 2020 and $30 billion for the period 2010-2012 as part of fasttrack funding to support the adaptation and mitigation activities of developing countries based on thematic funding windows. Initially, the fund will have windows for adaptation and mitigation. Going ahead, an integrated approach to funding mitigation and adaptation will be used to allow for cross-cutting projects and programmes.
It will be governed and supervised by a 24-member board and designated as an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC).
The GCF would channel new, additional, adequate and predictable financial resources to developing countries and catalyse climate finance, both public and private and at the international and national levels.
It will provide financing in the form of grants and concessional lending tailored to cover the identifiable additional costs of the investment necessary to make the project viable.
The fund will support developing countries in pursuing project-based and programmatic approaches in accordance with climate change strategies and plans, such as low-emission development strategies or plans, nationally appropriate mitigation actions (NAMAs), national adaptation plans of action (NAPAs), national adaptation plans (NAPs).
The fund?s start-up operations would need a financing of $6.7 million till 2012.