Which of the following statements regarding 'Green Climate Fund' is/are correct? Select the correct answer using the code given below.

Answer: (a) 1 only

The GCF funds developing countries; it was created by the UNFCCC.

Statement by statement

1. ✓ CORRECT The GCF helps developing countries with adaptation and mitigation.

2. ✗ WRONG It was set up under the UNFCCC (Cancún, 2010) — not by UNEP, OECD, ADB and the World Bank.

The idea

Developed countries promised to raise 100 billion dollars a year by 2020 to help developing countries act on climate change. The Green Climate Fund was created by the UNFCCC parties themselves as the main channel for that money. It answers to the Conference of the Parties, not to any bank or UN agency.

Copenhagen 2009: promise of 100 billion dollars a year → Cancún 2010: Green Climate Fund created → Developed countries contribute → Fund aims for a 50:50 split → Half for mitigation, half for adaptation

The trap

The World Bank was an interim trustee, which makes statement 2 feel partly true.

Elimination technique

Statement 2 is a parentage claim (“founded under the aegis of…”) with four parents. Such claims are usually false in Environment PYQs. Dropping it leaves only option (a).

Also know

Head office: Songdo, South Korea. In India the nodal authority is the Environment Ministry, and NABARD and SIDBI are accredited to take projects to the fund. Other climate funds: the Adaptation Fund (from the Kyoto Protocol), the Least Developed Countries Fund (run by the GEF), and the Loss and Damage Fund (agreed at COP27, 2022). At COP29 in Baku the new goal became 300 billion dollars a year by 2035.