Green Climate Fund amassed USD 9.3 billion – EUR 80 million from Finland

Press release 2014-11-21 at 11:07

Ministry of the Environment and Ministry for Foreign Affairs

The high-level Pledging Conference of the Green Climate Fund that ended in Berlin on 20 November yielded the considerable sum of 9.3 billion US dollars, or approximately 7.4 billion euros, in funding commitments for the years 2015–2018. The Fund’s objective is, in an equitable manner, to support the measures taken by developing countries to mitigate and adapt to climate change.

At this stage, 21 countries are participating. The largest contributors are the United States (USD 3 billion), Japan (USD 1.5 billion) and the United Kingdom (GBP 720 million). France and Sweden have announced substantial funding commitments earlier. With the exception of France, the countries are providing this funding as donations. Aside from the traditional donor countries, funding commitments were made by a number of emerging economies and developing countries, such as South Korea, Mexico and Panama.

Finland announced that the country’s aim is 80 million euros for the years 2015–2018. The share for the first year totals 34.7 million euros. Finland’s funding contribution in its entirety is donated aid. The first tranche will be financed by revenues from the auctioning of emission allowances.

“The Green Climate Fund is an important way for Finland to participate in the work against climate change. At the same time, it offers the opportunity to promote a low-carbon economy and sustainable development in developing countries, and to make efficient use of emissions trading revenues,” says Development Minister Sirpa Paatero.

Countries that have made funding commitments can still augment their contribution later and new countries can join the ranks of donors. Among others, Canada and several Latin American countries are planning their own pledges in the near future. Private donors can also participate in the Fund’s activities.

“From the perspective of the atmosphere of climate negotiations, it was important for the first capitalization round to be successful. The outcome of the conference in Berlin increases trust between the parties ahead of the Lima Climate Change Conference, thus also boosting confidence in an agreement in Paris,” says Minister of the Environment Sanni Grahn-Laasonen.

The Green Climate Fund was established in 2010 under the agreement of the United Nations Climate Change Conference, and negotiations for the first funding package started in the summer of 2014. The Fund will have a wide selection of various funding instruments, donations and loan assistance. Its mission is also to promote the availability of private investments.

Additional information:

Counsellor Juha Pyykkö, Ministry for Foreign Affairs, tel. +358 295 351 441, Senior Researcher Folke Sundman, Ministry for Foreign Affairs, tel. +358 295 351 035, Sonja Kekkonen, Special Adviser to Minister Paatero, Ministry for Foreign Affairs, mobile tel. +358 50 455 4680, firstname.surname@formin.fi.

Special Adviser Aino Salo, Ministry of the Environment, mobile tel. +358 50 306 9599, Harri Laurikka, Principal Negotiator on Climate Change, Ministry of the Environment, tel. +358 295 250 156, firstname.surname@ymparisto.fi.