Responding to the climate challenge requires collective action from all countries, cities, businesses, and private citizens. Among these concerted efforts, advanced economies have formally agreed to jointly mobilise USD 100 billion per year by 2020, from a variety of sources, to address the pressing mitigation and adaptation needs of developing countries.
GCF's Governing Instrument enables the Fund to accept contributions from developed countries party to the UN Framework Convention on Climate Change (UNFCCC) as well as public, non-public, and alternative sources. Such sources include, among others, countries not party to the UNFCCC, entities, and foundations. Contributions from parties to the UNFCCC and other sovereign entities may be made in the form of grants, capital or loans. They may be made in any convertible currency – in cash or, by agreement, via promissory note – and there is no limit to the amount a contributor may contribute.
Governments also agreed that a major share of new multilateral, multi-billion dollar funding should be channeled through the Green Climate Fund. At the Fund's first replenishment conference in October 2019, leaders demonstrated strong and continued confidence in GCF's unique ability to support developing countries to design and deliver ambitious climate action plans known as Nationally Determined Contributions (NDCs). Governments are expected to submit updated plans by 2020.