Green Climate Fund Falls Short From The $100 Billion Target
The Green Climate Fund (GCF), which is a global initiative to address the growing concern on climate change, has an approved budget of $1 billion for its projects for underdeveloped countries. However, it remains largely underfunded despite the multi-billion dollar donations from different nations.
The fund was established in 2010 as part of United Nation's flagship program. It is intended to source funds for adaptation and climate mitigation of poorer countries.
It initially aimed for $100 billion but it is still about $90 billion short. The fund is yet to hand cash for most of its approved projects.
The fund's Interim Executive Director Javier Manzanares acknowledged the presence of problems. He noted that the existing problems have prevented the organization from achieving the projects they have originally planned.
"Our ambition is currently limited by our capacity. We must recruit senior talent to the fund promptly, so we can deliver on our mandate," Manzanares stated in an interview.
"To turn GCF into a driving force for global climate finance, we will need to allocate funds more quickly, and we will need to disburse resources for projects swiftly after they have been approved," he added.
So far, the Green Climate Fund has one funded project which hopes to bring solar powers to homes that have a serious need for it. The beneficiary of the project includes households located in Kenya and Rwanda where it is scheduled to be launched.
GCF has approved $256.6 million fund for nine proposed projects in July. It is followed by $745 million worth of projects after several months.
So far, the fund has a total of $1.17 billion worth of projects approved for funding. It is a little over the 10% pledge by several nations.
Liane Schalatek, a delegate sent by developed countries as a "civil society observer" to the latest board meeting, commented that the path the Green Climate Fund has decided to take is not what people hoped it to be.
"We are very concerned that the fund is simply replicating conventional climate financing mechanisms and that its projects often have insufficient local consultation and transparency," she said.