The effects of climate change is all around us, and there is a clear need to build preventative, adaptive, and mitigating solutions for them. This is clear and obvious enough for all to see and recognize. What hasn’t so far been clear and obvious enough is where to get the needed funding to finance the needed projects, solutions, and entrepreneurial initiatives to address these ever-burgeoning climate issues.
Of course, plenty of alternatives exist outside of governments - but a global problem as big and existential as climate change is not one for the private sector to solve alone. Here we explore intergovernmental funding alternatives that climate actors, projects, and solutions may seek funding for. This is not an exhaustive list, but a good place to start.
Green Climate Fund (GCF) This was established by the United Nations Framework Convention on Climate Change (UNFCC) in 2010 and is one of the largest climate-dedicated funds globally. It manages over $100b and was created to help developing countries to build climate mitigation and adaptation projects. “At least half of its adaptation resources must be invested in the most climate vulnerable countries (SIDS, LDCs, and African States)”. Here are its portfolio of projects, and to qualify for funding, you will need to apply through an intermediary.
Adaptation Fund (AF) The Adaptation Fund was established at the Kyoto Protocol in 2001 to help developing countries (that were party members at the time) develop climate adaptive solutions. Since then, they’ve deployed over $1.1b in climate projects that have benefited over 43 million people in the project countries. Here’s how you may apply for funding, and its investment portfolio.
Climate Investment Fund (CIF) Established in 2008, the CIF already has more than $11.1b in pledged assets and have invested in over 400 projects across 72 countries. CIF is one of the world’s largest multilateral funds helping low and middle income countries adapt to and mitigate climate change. They invest across 11 standalone focus programs, some of which include investing in coal transition, energy storage, renewable energy (etc.) solutions
Loss and Damage Fund (LDF) This is a fund still being designed and developed. The decision to establish the Loss and Damage Fund was taken in 2022 by world leaders at the United Nations Climate Change Conference (COP27). The LDF is aimed at providing financial assistance for the rescue and rehabilitation of the communities that have suffered damages and losses due to the climate crisis - such as rising sea levels, prolonged heatwaves, desertification, the acidification of the sea, and extreme events such as bushfires, species extinction, and crop failures.