GEF projects in climate change help developing countries and economies in transition to contribute to the overall objective of the United Nations Framework Convention on Climate Change (UNFCCC) "to achieve [...] stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner" (from the text of the UNFCCC, Art.2).

As the financial mechanism of the UNFCCC, GEF allocates and disburses about $250 million dollars per year in projects in energy efficiency, renewable energies, and sustainable transportation. Moreover, it manages two special funds under the UNFCCC — the Least Developed Countries Fund and the Special Climate Change Fund. 

Types of GEF Projects in Climate Change

The GEF supports projects in:

• Climate Change Mitigation: Reducing or avoiding greenhouse gas emissions in the areas of renewable energy, energy efficiency, and sustainable transport

• Climate Change Adapatation: Aiming at increasing resilience to the adverse impacts of climate change of vulnerable countries, sectors, and communities

Renewable Energies

Renewable energy is one of the most promising substitutes for fossil fuels, which are responsible for the largest share of greenhouse gas emissions. The GEF helps countries remove barriers to developing markets for renewable energies wherever cost-effective. Such opportunities can be found in on-grid and off-grid situations, as well as in the area of renewably generated heat for industrial and other applications. In these cases, GEF support helps create enabling policy frameworks, build the capacity for understanding and using the technologies, and establish financial mechanisms to make renewables more affordable.

Energy Efficiency

Using less energy saves money, and reduces greenhouse gas emissions. Many of these win-win situations are already exploited, but there is much more to be done. The GEF promotes energy efficiency by removing barriers to the large-scale application, implementation, and dissemination of cost-effective, energy-efficient technologies and practices. Such barriers lie in the lack of conducive policies, inadequate information and awareness, and insufficient access to financing. GEF supports market transformation of energy-efficiency appliances and widespread adoption of energy-efficient technologies in industry and building sectors.

Sustainable Transportation

Throughout the world, the transportation sector is the fastest growing source of greenhouse gas emissions. GEF supports projects that promote a long-term shift towards low emission and sustainable forms of transportation. Eligible activities include the following: public rapid transit, which encompasses bus rapid transit, light rail transit, and trolley electric buses; transport- and traffic-demand management; non-motorized transport, and land-use planning.

Adaptation

The Climate Convention guidance to the GEF on adaptation has evolved through a series of staged approaches. Originally, the GEF supported initial studies, vulnerability and adaptation assessments, and capacity building. More recently, the United Nations Framework Convention on Climate Change asked the GEF to support pilot and demonstration projects in the field of adaptation. Under its strategic priority Piloting an Operational Approach to Adaptation, the GEF supports projects that provide real benefits and may be integrated into national policies and sustainable development planning. In addition, the GEF supports adaptation activities through the Least Developed Country Fund and the Special Climate Change Fund.

New Low-GHG Energy Technologies

In addition to renewable energies and energy efficiency, new technologies are critical to help prevent dangerous levels of greenhouse gas emissions, while allowing for economic development. GEF provides support for such new technologies that are not yet cost effective. The current portfolio ranges from large-scale solar power plants, to distributed power generation in fuel cells, to building-integrated solar photovoltaics. Future interventions should focus on global and regional market integration and aggregation efforts, and foster national innovation.

Enabling Activities, National Communications and other obligations under the UNFCCC

The GEF helps developing countries to submit national communications to the UNFCCC, including a report on national inventories of greenhouse gases. The largest part of GEF support for the national communications is delivered through an umbrella and support program administered by the United Nations Development Programme and United Nations Environment Programme. Through this umbrella program, countries can also receive support for vulnerability and adaptation assessments, capacity building, and technology needs assessments.