Question Period Note: Green Climate Fund

Green Climate Fund

• Canada recognizes the importance of meeting its Paris Agreement commitments to helping developing countries in their fight against climate change.

• That is why the Government of Canada was proud to announce, at the last G7 Summit in France, an additional $300 million pledge to the Green Climate Fund, making Canada a top-ten donor. This pledge is part of Canada’s broader climate finance commitment of $2.65 billion over five years.

• During the Green Climate Fund’s five years of operation, over 100 projects were approved, which are expected to reduce CO2 emissions by 1.5 billion tonnes and benefit over 276 million people.

• This goal will be accomplished by helping recipient countries—in particular the poorest and most vulnerable—adapt to and mitigate the effects of climate change.

• Canada was among the first group of donor countries to help operationalize the Green Climate Fund, contributing $300 million for a total of $600 million. Canada will continue to advocate for the Green Climate Fund to play a transformational role in global climate finance.

HIGHLIGHTS
• Canada’s new pledge: In August 2019, at the G7 Leaders’ Biarritz Summit in France, Prime Minister Trudeau pledged $300M to the GCF, making Canada the 8th largest donor*.

• GCF Replenishment: The GCF is expected to conclude its first Replenishment process in November, 2019. To date, it has received pledges totalling approximately USD9.7B from 27 donor countries.

• GCF Board: As a GCF Board member, Canada is committed to using its seat within the GCF to promote: Board governance and institutional strengthening, gender equality, and support for adaptation projects, with an emphasis on least developed countries (LDCs) and Small Island Developing States (SIDS).

• Results: With a portfolio of USD5.23B, GCF climate action is expected to reduce 1.5 billion tonnes of CO2 emissions and benefit over 276 million people in 111 developing countries.

CONTEXT
Established at the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, the GCF has the potential to play a transformational role within the Financial Mechanism for the Convention to address the climate change needs of developing countries.

Headquartered in Sondgo, South Korea, the GCF is governed by a Board of 24 members, with equal representation from developing and developed countries. The Board generally meets three times a year. Decisions are made along a consensus basis. The GCF has also established an independent secretariat which runs the day-to-day operations of the Fund, accountable to the Board lead by an Executive Director.

The GCF projects support the most vulnerable to the effects of climate change. As such, the Fund has set a target for a 50:50 balance between mitigation and adaptation investments, and a floor of 50 percent of adaptation funds allocated to particularly vulnerable regions, including LDCs and SIDS.

CANADA AND THE GCF
Canada joined the GCF in 2014, at the beginning of its first programming period, with the objective of supporting effective delivery of climate finance, leveraging private sector investment, and ensuring oversight of Canadian funds. Canada was among the first group of donor countries to help operationalize the GCF, contributing $300M as part of the Fund’s initial resource mobilization period (2015-2018).

At that time, the GCF received total pledges of USD10.3 billion. However, shortly after the 2016 US election, the US announced that it would “terminate” future US contributions to the GCF. As a result, USD2B of the US pledge of USD3B was never converted into a contribution. In 2018, Australia, a donor country during the initial resource mobilization period (USD141), also announced its decision that it would not take part of the Fund’s first Replenishment process.

Canada holds Board Membership at the GCF, sharing a Constituency with Poland and Belgium. Canada continues to actively pursue improved governance, including through a robust gender policy, and an emphasis on the needs of LDCs and SIDs.

CURRENT STATUS
The GCF is expected to formally conclude its first Replenishment process in November 2019. To date, pledges have generated a total of USD9.7B from 27 donor countries, including Germany (USD1.7B), the UK (USD1.9) and France (USD1.8B).

In August 2019, at the G7 Leaders Summit in Biarritz, France, Prime Minister Trudeau pledged $300M to the GCF, making Canada the 8th largest donor in the replenishment and as a contributor.

Although the US and Australia did not announce a pledge during this process, France and the UK were among several countries, including Germany and Norway, who pledged to double their contribution to the Fund to fill the funding gap created by the US and Australian decisions.

Since the GCF’s inception in 2014, Canada has been a strong and committed supporter of this vital multilateral institution for channeling Canada’s climate finance, contributing a total of $600M to the Fund.

Our commitment to the GCF is part of Canada’s extensive portfolio of climate finance initiatives, both bilateral and multilateral, in support of developing countries’ efforts to adapt and mitigate against the worsening consequences of climate change. Canada’s recent $300M pledge is partly funded via the current $2.65B climate finance commitment, which ends in fiscal year 2020-2021.

Question Period notes as provided by the Department to the Minister’s Office