Global Climate Funds & India’s Climate Finance Architecture: Smart Module

Economy & Environment

Global Climate Funds & India’s Climate Finance Architecture

One-page smart map of major multilateral climate funds + India-specific funds with purpose and administering body.

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1. Core UNFCCC / Paris Agreement Funds

These are the main “operating entities” of the UNFCCC financial mechanism.

Fund Administering Body Intended Purpose / Focus Key Design Features
Green Climate Fund (GCF) Independent GCF Board Under UNFCCC & Paris Agreement World Bank initially as trustee
  • Main multilateral fund to support mitigation + adaptation in developing countries.
  • Mandate: promote a “paradigm shift” towards low-emission, climate-resilient development.
  • Instruments: grants, concessional loans, equity, guarantees.
  • Access: via international institutions & direct access (national entities).
  • Priority for LDCs, SIDS, African countries.
  • Headquarters: Songdo, Incheon, South Korea.
Global Environment Facility (GEF) Trust Fund GEF Council / Secretariat World Bank as trustee Partnership of 18+ agencies
  • Finances incremental costs of projects that yield global environmental benefits.
  • Works across climate, biodiversity, land degradation, chemicals, international waters.
  • Older operating entity of UNFCCC (pre-GCF); now in replenishment cycles (e.g. GEF-8).
  • Provides mainly grants & blended finance.
  • Also manages LDCF & SCCF for UNFCCC.
Least Developed Countries Fund (LDCF) Managed by GEF Guided by UNFCCC COP
  • Only fund fully dedicated to adaptation in LDCs.
  • Finances implementation of National Adaptation Programmes of Action (NAPAs) and adaptation projects.
  • Supports climate-resilient agriculture, water, health, coastal protection, climate information services.
  • Funded by voluntary contributions of developed countries.
  • Feature: restricted to LDCs + adaptation.
Special Climate Change Fund (SCCF) Managed by GEF Guided by UNFCCC COP
  • Supports adaptation in developing countries not covered by LDCF (i.e. non-LDCs).
  • Also finances technology transfer and projects in sectors like energy, industry, transport, waste.
  • Complements LDCF; serves the Paris Agreement along with GCF & GEF.
  • Feature: not limited to LDCs; broader sectoral coverage.
Adaptation Fund (AF) Adaptation Fund Board Secretariat by GEF World Bank as trustee
  • Finances concrete adaptation projects & programmes in developing countries.
  • Initially under Kyoto Protocol; now also serving the Paris Agreement.
  • Originally financed from 2% levy on CDM CERs (share of proceeds).
  • Pioneer of direct access modality (national implementing entities).
  • Projects usually small–medium scale; strong focus on vulnerable communities.
Loss and Damage Fund Board of the Fund World Bank (Interim Trustee)
  • To assist developing countries that are particularly vulnerable to the adverse effects of climate change.
  • Focuses on addressing economic and non-economic loss and damage.
  • Operationalized at COP28 (Dubai).
  • Distinct from adaptation finance (deals with impacts that cannot be adapted to).
  • Accessible directly by developing countries and via international intermediaries.
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2. Climate Investment Funds (CIF) & Sub-Funds

CIF is a major MDB-led climate finance architecture, hosted by the World Bank and implemented via multilateral development banks (MDBs).

Fund / Program Administering Body Focus Key Features
Climate Investment Funds (CIF) – Umbrella CIF Trust Fund Committees World Bank as trustee Implemented via 6 MDBs
  • One of the largest multilateral climate finance instruments (multi-billion USD).
  • Supports low- and middle-income countries in clean energy, resilience, nature, industry decarbonisation etc.
  • Uses concessional loans, guarantees, grants to “crowd-in” private and MDB finance.
  • Recently exploring capital markets / bonds to expand resources.
  • Organised mainly through CTF & SCF.
Clean Technology Fund (CTF) CTF Trust Fund Committee Under CIF
  • Large-scale deployment of low-carbon technologies in power, transport, industry.
  • Focus on mitigation (renewables, energy efficiency, electric mobility, grid upgrades).
  • Blend of concessional MDB lending + private capital.
  • Important for coal transition, industrial decarbonisation, clean energy programmes.
Strategic Climate Fund (SCF) SCF Trust Fund Committee Under CIF
  • Umbrella for thematic programmes that pilot innovative approaches in resilience, forests, renewables, cities, etc.
  • Includes PPCR, FIP, SREP and newer programmes (industry, cities, nature).
  • Focus on scalable pilots that can be replicated with mainstream finance.
Pilot Program for Climate Resilience (PPCR) SCF under CIF
  • Supports developing countries to integrate climate resilience into development planning.
  • Funding for climate-proof infrastructure, early warning systems, climate-resilient agriculture, urban resilience.
  • Links to adaptation and NDC resilience goals.
Forest Investment Program (FIP) SCF under CIF
  • Supports REDD+-related forest & land-use reforms in tropical countries.
  • Finances community forestry, sustainable forest management, climate-smart land use.
  • Complementary to UN-REDD and FCPF (results-based carbon payments).
Scaling Up Renewable Energy Program in Low-Income Countries (SREP) SCF under CIF
  • Demonstrates viability of renewable energy pathways and energy access solutions in low-income countries.
  • Finances mini-grids, off-grid solar, wind, biomass, and enabling policies.
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3. Forest & REDD+ Related Funds

These funds link climate finance with forests, land-use change and REDD+, often combining readiness support and results-based payments.

Fund / Programme Administering Body Main Purpose Important Details
UN-REDD Programme Fund Jointly by FAO, UNDP, UNEP
  • Helps developing countries to prepare and implement REDD+ strategies.
  • Focus on readiness & capacity building (MRV systems, forest monitoring, safeguards).
  • Strong engagement with indigenous peoples and local communities.
Forest Carbon Partnership Facility (FCPF) World Bank–hosted facility
  • Supports countries to get “ready” for REDD+ and provides results-based payments for verified emission reductions.
  • Two windows: Readiness Fund & Carbon Fund.
  • Carbon Fund pays ex-post for reduced deforestation / degradation.
Forest Investment Program (FIP) (also in CIF) SCF under CIF
  • Investments for transformational forest sector reforms and community-based forestry.
  • Supports enabling policies, land rights, livelihood alternatives, climate-smart agriculture.
  • Key link between development finance and REDD+ carbon finance.
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4. Other Multilateral / Thematic Climate Funds

These mechanisms complement the core UNFCCC funds by targeting specific regions, instruments or policy tools.

Fund / Initiative Administering Body Purpose / Niche Useful Points
NAMA Facility
(Nationally Appropriate Mitigation Actions Facility)		 Supported by Germany, UK, EU, Denmark Implemented via GIZ & KfW
  • Supports implementation of ambitious mitigation actions (NAMAs) aligned with NDCs.
  • Focus on sectoral transformation (buildings, transport, waste, energy, etc.).
  • Grants + technical assistance, often to leverage other funds (GCF, MDBs).
Global Climate Change Alliance Plus (GCCA+) European Union (DG INTPA)
  • EU initiative to support climate action and resilience in LDCs and Small Island Developing States (SIDS).
  • Uses budget support, policy dialogue and projects.
  • Links climate finance with development cooperation and EU partnerships.
GEEREF – Global Energy Efficiency and Renewable Energy Fund EU public–private fund of funds Managed by European Investment Bank (EIB)
  • Provides equity to clean energy investment funds operating in developing regions.
  • Example of using equity / private capital for climate goals (not only grants & loans).
  • Focus on smaller, distributed renewable & efficiency projects.
NDC Partnership – Trust Funds & Support Packages NDC Partnership Support Unit Backed by multiple donors & institutions
  • Helps countries design, update and implement Nationally Determined Contributions (NDCs).
  • More of a facilitation + technical assistance platform than a classic project fund.
  • Connects countries with GCF, GEF, CIF and bilateral support.
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5. India-Specific Climate Funds

This section outlines India’s domestic climate funds and how they complement global finance.

Fund / Mechanism Administering Body Purpose / Coverage Key Features
National Adaptation Fund for Climate Change (NAFCC) Ministry of Environment, Forest and Climate Change (MoEFCC) NABARD as National Implementing Entity
  • Central Sector Scheme to support adaptation projects in vulnerable States / UTs.
  • Covers sectors like agriculture, water, forestry, coastal zones, livelihood resilience.
  • 100% grant from Government of India to States/UTs.
  • Helps implement State Action Plans on Climate Change and complements GCF / AF projects.
  • Key example of domestic climate finance.
National Clean Energy & Environment Fund (NCEEF)
(earlier NCEF)		 Govt. of India Inter-Ministerial Group (Finance Secretary as Chair)
  • Uses proceeds of the coal cess / clean environment cess to finance clean energy and environmental projects.
  • Has supported initiatives like Green Energy Corridor, solar mission, river cleaning, Green India Mission.
  • Shows how India uses fiscal instruments (cess) to mobilise climate finance.
CAMPA – Compensatory Afforestation Fund
(related, but not strictly a “climate fund”)		 MoEFCC & State CAMPA bodies
  • Manages funds collected for compensatory afforestation when forest land is diverted.
  • Legally separate from NAFCC/NCEEF, but important for carbon sinks, forest cover and REDD+-type outcomes.
  • Useful to link CAMPA with India’s NDC goal on creating additional carbon sink (e.g. through forests).
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