UNFCCC & the Paris Agreement
Paris and Beyond
Adopted in 1992, the United Nations Framework Convention on Climate Change (UNFCCC) unites 197 Parties to combat climate change. 195 countries have signed the Paris Agreement (183 countries have ratified the agreement), which establishes an ambitious objective to limit temperature increases to well below 2 degrees C above pre-industrial levels, and pursuing actions to further limit the global temperature increase to 1.5 degrees Celsius. Under this landmark Agreement, the participating countries (“Parties”) commit to develop, implement and periodically update nationally determined contributions that reflect highest possible ambition and include targets they intend to achieve, recognizing differing national circumstances. Developed countries are required to provide progressively higher levels of financial resources to assist developing country Parties with mitigation and adaptation, including through the Green Climate Fund (GCF), which serves as the financial mechanism of the convention. The rules for implementing the Paris Agreement are still being developed, including the guidelines and mechanism being developed to support cooperative approaches and rules for transparency.
On a parallel track, the GCF continues its mission in support of the broad goals of the Paris Agreement. To this end, the Fund has a distinct mandate to effect a paradigm shift to fundamentally lower carbon emissions and support meaningful adaptation. the GCF has committed USD 4.6 billion in its first four years to 93 projects and programs covering mitigation and/or adaptation. With only USD 1.5 billion left to allocate, the Fund has launched a process to solicit a second round of funding commitments (replenishment). As the Fund prepares for replenishment, it is an opportune time to strengthen the Fund’s operations, including measures to support enhanced alignment with developing country mitigation and adaptation goals, make higher risk investments aimed at achieving higher returns and transformational impact, and through improved monitoring, reporting and verification (MRV).
CCAP’s work on this topic
CCAP’s current work includes projects aimed at testing out new approaches for international cooperation under Article 6 of the Paris Agreement, as well as projects that seek to strengthen GCF operations towards impactful, paradigm-shifting investments. Highlights include:
- CCAP’s recent policy papers that look at ways of achieving ambitious outcomes and avoid double counting under future cooperative approaches that make use of carbon markets. In particular, CCAP has advanced a new work program to develop virtual pilot projects to test out the potential for effective and win-win internationally transferred mitigation outcomes.
- Development of a strategic roadmap for maximizing Green Climate Fund’s engagement with the private sector. Key elements of this roadmap are being integrated into the Private Sector Facility’s strategic planning.
- New analysis and recommendations to strengthen the GCF’s approach to MRV, aimed at improving the Fund’s impact and tracking transformational outcomes.
 The Fund’s commitment authority, as reported by the Secretariat at the twentieth first meeting of the Board, leaves approximately USD 1.3 billion to be committed for the remaining GCF initial resource mobilization period. An additional USD 0.5 billion has been set aside for the operation of the Fund.