Climate finance under the UNFCCC
The contribution of countries to climate change, and their capacity to prevent and cope with its consequences, varies enormously. Thereby, the Convention states that developed countries (Annex II Parties) shall provide financial assistance to developing countries to enable them to address climate change and adapt to its adverse effects (Article 4.3 and 4.4). To facilitate the implementation of this component, the Convention established a Financial Mechanism to provide funds to developing country Parties.
The Financial Mechanism of the Convention
Under its Article 11, the Convention states that the operation of the Financial Mechanism is entrusted to one or more existing international entities. The operation of the Financial Mechanism were partly entrusted to the Global Environment Facility (GEF) in 1994.
At its fourth session in 1998, the Conference of Parties (COP), decided to review the Financial Mechanism of the Convention every four years in accordance with Article 11.4 of the Convention. Since that, five reviews of the Financial Mechanism of the Convention have been conducted in the past, with the most recent one at COP 20 in 2014. read more
Climate Finance in the Paris Agreement
The Paris Agreement has handled several aspects related to climate finance, in particular:
A clear signal to continue and increase financial assistanceIn its Article 9, Paris Agreement stipulates that developed country Parties shall provide financial resources to assist developing country Parties with respect to both mitigation and adaptation in continuation of their existing obligations under the Convention. read more