07/06/2021
#42
Answer: B
Explanation
Green Climate Fund (GCF)
● It does this by channelling climate finance to developing countries, which have joined other nations in committing to climate action.
● GCF’s activities are aligned with the priorities of developing countries through the principle of country ownership and the Fund has established a direct access modality so that national and sub-national organisations can receive funding directly rather than only via international intermediaries
● GCF aims to catalyse a flow of climate finance to invest in low-emission and climate-resilient development, driving a paradigm shift in the global response to climate change
GCF’s approach is marked by several distinct features
● Balanced portfolio: GCF’s investments are aimed at achieving maximum impact in the developing world, supporting paradigm shifts in both mitigation and adaptation. The Fund aims for a 50:50 balance between mitigation and adaptation investments over time.
➢ It also aims for a floor of 50 percent of the adaptation allocation for particularly vulnerable countries, including Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African States.
● Unlocking private finance: The Fund is unique in its ability to engage directly with both the public and private sectors in transformational climate-sensitive investments. GCF engages directly with the private sector through its Private Sector Facility (PSF).
➢ It offers a wide range of financial products including grants, concessional loans, subordinated debt, equity, and guarantees.
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