The U.S. State Department is announcing that it has made an additional $500 million grant to support the Green Climate Fund (GCF). Consistent with last year’s GCF grant, this funding is provided from the fiscal year 2016 Economic Support Fund (ESF) appropriation. U.S. funding for the GCF continues U.S. government support by this and prior Administrations for climate change programs through multilateral funds.
The GCF is the world’s largest multilateral finance institution dedicated to advancing low-emission, climate-resilient development. The GCF was created to help protect vulnerable populations and drive clean energy deployment, all with a special focus on engaging the private sector and mobilizing private capital.
More than 180 countries have set forth their plans to cut emissions; many of them are making important policy and regulatory reforms to promote private sector investment in energy efficient and low-emissions technologies. The GCF supports developing nations in their efforts to achieve those objectives and to become more resilient to climate change – in turn, reducing the global and national security risks associated with inadequate adaptation to and preparedness for extreme weather events and other climate related impacts. With limited public resources, the GCF also directly engages the private sector in new and innovative ways to mobilize greater private investment, sending an unmistakable signal to global markets that the low-emission transition is moving forward.