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49-496: The Green Climate Fund ( GCF ) is a fund for climate finance that was established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC). Considered the world's largest fund of its kind, GCF's objective is to assist developing countries with climate change adaptation and mitigation activities. The GCF is an operating entity of the financial mechanism of

98-573: A registered charity , ODI's income relies on "grants and donations from foundations, non-governmental organisations, the private sector, governments, multilateral agencies and academia". In March 2024, they announced new funding from the Patrick J. McGovern Foundation "to support the launch of the Data-centric AI programme and responsible data stewardship research activities over the next 12 months". David Steven of Global Dashboard criticized

147-702: A business concept would want to accumulate all the necessary resources including capital to venture into a market. Funding is part of the process, as some businesses would require large start-up sums that individuals would not have. These start-up funds are essential to kick-start a business idea, without it, entrepreneurs would not have the ability to carry out their concepts in the business world. Fund management companies gather pools of money from many investors and use them to purchase securities . These funds are managed by professional investment managers, which may generate higher returns with reduced risks by asset diversification . The size of these funds could be as little as

196-422: A business start-up and small business, usually in exchange for convertible debt or ownership equity. They are often among an entrepreneur's family and friends. The funds they provide can be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages. Venture capital is a type of private equity and a form of financing that

245-414: A certain amount of time, usually in a year's time, rewards of the investment will be shared with investors. This makes investors happy and they may continue to invest further. If returns do not meet the intended level, this could reduce the willingness of investors to invest their money into the funds. Hence, the amounts of financial incentives are highly weighted determinants to ensure the funding remains at

294-435: A common form of funding for businesses, individuals, and governments. Equity financing involves raising capital through the sale of shares in an enterprise. Equity financing is essentially the sale of an ownership interest to raise funds for business purposes. This type of financing is typically used by startups and growing businesses to raise capital. Debt financing involves borrowing money to be repaid, plus interest, at

343-566: A consequence, it has been argued that these countries are morally responsible to pay for a lion's share of the cost of climate mitigation worldwide, including costs of the transition of less developed and least developed countries . A number of civil society groups determined that the United States and the European Union are morally responsible for at least 54% of the cost of mitigating climate change-driven disaster damage in

392-416: A corporation normally provide commercial research funding. Whereas, non-commercial research funding is obtained from charities, research councils, or government agencies . Organizations that require such funding normally have to go through competitive selections. Only those that have the most potential would be chosen. Funding is vital in ensuring the sustainability of certain projects. Entrepreneurs with

441-552: A desirable level. Venture Capital (VC) is a subdivision of Private Equity wherein external investors fund small-scale startups that have high growth potential in the long run. Investors receive a portion of the company’s equity in return for the money invested by them. The amount of money that a Venture capital firm can raise is predominantly built on the Principal-agent relationship between the Limited Partners and

490-587: A fellowship scheme, which sends young postgraduate economists of all nationalities to work in the public sectors of developing countries in sub-Saharan Africa, the Caribbean, South Asia, South East Asia and the Pacific on two-year contracts. Since 1963 ODI has sent over 1000 postgraduate economists to work in 40 mostly low-income countries. Participants were initially known as Overseas Development Institute Nuffield Fellows (ODINs) and later titled as ODI Fellows. As

539-481: A few millions or as much as multi billions. The purpose of these funding activities is mainly aiming to pursue individual or organization profits. Personal funding involves using personal finances to fund an initiative. This could include savings, personal loans, or funds from friends and family. It is common in the early stages of a business or project when other sources of funding may not be accessible. Corporate funding involves funds provided by corporations, often in

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588-414: A later date. Common types of debt financing include traditional bank loans, personal loans, bonds, and lines of credit. This form of financing is advantageous because it does not require giving up ownership of the business. One form of guarantee creates a conditional liability to make a payment, whereby the guarantor will pay the principal debt holder fails to do so. Effectively when the liability to make

637-467: A payment is trigged the guarantor becomes a funder. Government could allocate funds itself or through government agencies to projects that benefit the public through a selection process to students or researchers and even organizations. At least two external peer-reviewers and an internal research award committee review each application. The research awards committee would meet some time to discuss shortlisted applications. A further shortlist and ranking

686-531: A test pilot of SOFA began in the Netherlands. A company or an individual may secure a loan to get access to capital. Often borrowers must use a secured loan where assets are pledged as collateral. If the borrower defaults, ownership of the collateral reverts to the lender. Both tangible and intangible assets can be used to secure loans. The use of IP as collateral in IP-backed finance transactions

735-680: A wide range of development issues. Speakers include ODI staff, visiting development policymakers, DFID officials and other prominent figures such as Justin Yifu Lin , the former World Bank Chief Economist , Julia Gillard , the 27th Prime Minister of Australia, and David Miliband , chief executive officer of the International Rescue Committee . In 2020 ODI published 235 papers, research reports, briefings, case studies and analysis. ODI has two academic journals, Development Policy Review and Disasters . ODI runs

784-549: Is Sara Pantuliano . Alex Thier was ODI Executive Director 2017 – 2019. From 2013 until 2016 it was directed by Kevin Watkins who took over from Alison Evans , formerly of the Institute of Development Studies (IDS) at Sussex University. ODI does not engage in teaching. As of 2021, ODI conducts research and convening in the following global affairs areas: ODI hosts regular event series with conferences and panels discussing

833-618: Is Suma Chakrabarti . In 1960 ODI began in small premises in Regent's Park, central London and operated a library devoted to international development issues as well as performing consultancy work and contracts with the Department for International Development of the UK government. Since then it has moved several times and is as of 2019 on Blackfriars Road. In 2007 the ODI was named 'Think Tank of

882-404: Is funding used for research-related purposes. It is most often used to describe funding in the fields of technology or social science. The allocation of funds are usually granted based on a per project, department, or institute basis stemming from scope of the research or project. Research funding can be split into commercial and non-commercial allocations. Research and development departments of

931-463: Is made. Projects are funded and applicants are informed. Econometric evidence shows public grants for firms can create additionality in jobs, sales, value added, innovation and capital. For example, this was shown to be the case for large R&D grants, as well as smaller public grants for the tourism firms or small and medium sized firms in general. Crowdfunding exists in mainly two types, reward-based crowdfunding and equity-based crowdfunding. In

980-674: Is no strict definition of this term, which has already led to serious problems in evaluating the additionality of emission reductions through CDM projects , leading to counter-productivity, and even fraud . While climate finance usually only counts pledges from developed countries, the US$ 10.3 billion pledged to the GCF also includes some (relatively small) contributions from developing countries. At its board meeting in South Korea held in March 2015,

1029-668: Is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential or which have demonstrated high growth. Venture capital investments are generally made in exchange for equity in the company. Grants are funds provided by one party, often a government department, corporation, foundation, or trust, to a recipient, typically a nonprofit entity, educational institution, business, or individual. Unlike loans, grants do not need to be repaid. Loans are borrowed sums of money that are expected to be paid back with interest. They can be provided by banks, credit unions, or other financial institutions. Loans are

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1078-713: Is some concern amongst developing countries that inadequate adaptation financing will be offered, in particular if the fund is reliant on "leveraging" private sector finance. While GCF governing instrument stresses on the need for equal funding towards adaptation and mitigation, there is no universal measure of adaptation, which makes access to GCF funding extremely cumbersome. Funding Sources of funding include credit , venture capital , donations , grants , savings , subsidies , and taxes . Funding methods such as donations, subsidies, and grants that have no direct requirement for return of investment are described as " soft funding " or " crowdfunding ". Funding that facilitates

1127-541: Is the subject of a report series at the World Intellectual Property Organization . Withdrawal of funding, or defunding, occurs when funding previously given to an organisation ceases, especially in relation to Governmental funding. Defunding could be as a result of a disagreement or failure to meet set objectives . An example that explains the withdrawal of funding in this case is that of President Trump 's decision to stop funding

1176-562: The Global South . Others have argued that wealthier countries should help finance the transition of less developed and least developed countries because the former can more realistically afford the substantial investment now urgently needed for the transition. The Copenhagen Accord , established during the 2009 United Nations Climate Change Conference ( COP-15 ) in Copenhagen mentioned the "Copenhagen Green Climate Fund". The fund

1225-869: The UNFCCC . These are the Green Climate Fund (GCF), the Adaptation Fund (AF), the Least Developed Countries Fund (LDCF), the Special Climate Change Fund (SCCF) and the Global Environment Facility (GEF). The GCF is the largest of these five funds. Countries agreed to mobilise $ 100 billion a year by 2020 in climate finance, some of which has been mobilised through the GCF. Uncertainty over where this money would come from led to

1274-595: The World Health Organization (WHO) over alleged Coronavirus mismanagement. Overseas Development Institute Overseas Development Institute ( ODI ) is a global affairs think tank , founded in 1960. Its mission is "to inspire people to act on injustice and inequality through collaborative research and ideas that matter for people and the planet." It does this through "research, convening and influencing, to lead new thinking and future agendas to deliver transformational change." Its chair

1323-525: The Fund is backing too many "business-as-usual types of investment proposals". This view is echoed by a number of civil society organizations. In 2023, the Executive Director announced a series of reforms aimed at making the Fund more efficient and positioned to deliver greater impact. Wealthier, industrialized countries have been the countries responsible for most greenhouse gas emissions. As

1372-452: The Fund will ultimately use a broad range of financial instruments. However, several developing countries and non-governmental organizations have suggested that the PSF should focus on "pro-poor climate finance" that addresses the difficulties faced by micro-, small-, and medium-sized enterprises in developing countries. This emphasis on encouraging the domestic private sector is also written into

1421-477: The GCF has raised several issues. These include ongoing questions on how funds will be raised, the role of the private sector, the level of "country ownership" of resources, and the transparency of the Board itself. Also, this additional international climate institution might further fragment taxpayer's money that is put towards climate action . The Fund's former director Héla Cheikhrouhou has complained in 2016 that

1470-567: The GCF has raised several issues. These include ongoing questions on how funds will be raised, the role of the private sector, the level of "country ownership" of resources, and the transparency of the Board itself. In addition, questions have been raised about the need for yet another new international climate institution which may further fragment public dollars that are put toward mitigation and adaptation annually. The Fund's initial investments have met with mixed responses. But in at least one case it also drew praise for involving local communities in

1519-462: The GCF refused an explicit ban on fossil fuel projects, effectively allowing for the funding of coal plants. Japan, China, and Saudi Arabia opposed the ban. The Fund's former director Héla Cheikhrouhou has complained that the Fund is backing too many "business-as-usual types of investment proposals", a view echoed by a number of civil society organizations. The Fund is also pledged to offer "balanced" support to adaptation and mitigation, although there

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1568-410: The GCF's Governing Instrument, its founding document. The Cancun agreements clearly specify that the funds provided to the developing countries as climate finance, including through the GCF, should be "new" and "additional" to existing development aid. The condition of funds having to be new means that pledges should come on top of those made in previous years. As far as additionality is concerned, there

1617-683: The UNFCCC, and that on COP-18 in 2012, the necessary rules should be adopted to ensure that the GCF "is accountable to and functions under the guidance of the COP". Researchers at the Overseas Development Institute state that without this last minute agreement on a governing instrument for the GCF, the "African COP" would have been considered a failure. Furthermore, the GCF Board was tasked with developing rules and procedures for

1666-502: The UNFCCC. It is based in Songdo , Incheon , South Korea. It is governed by a Board of 24 members and supported by a Secretariat. Mafalda Duarte , a Portuguese development economist, is the Fund's Executive Director. The Green Climate Fund supports projects and other activities in developing countries using thematic funding windows . It is intended that the Green Climate Fund be the centrepiece of efforts to raise climate finance under

1715-492: The UNFCCC. There are four other, smaller multilateral climate funds for paying out money in climate finance which are coordinated by the UNFCCC. These include the Adaptation Fund (AF), the Least Developed Countries Fund (LDCF), the Special Climate Change Fund (SCCF) and the Global Environment Facility (GEF). The GCF is the largest of these five funds. As of Dec 2023, the GCF had a portfolio of 13.5 billion USD (51.9 billion USD including co-financing). The process of designing

1764-621: The US to contributing US$ 3 billion to the fund. In January 2017, in his final three days in office, Obama initiated the transfer of a second $ 500m installment to the fund, leaving $ 2 billion owing. Former U.S. President Donald Trump in his announcement of U.S. withdrawal from the Paris Agreement on 1 June 2017, also criticized the Green Climate Fund, calling it a scheme to redistribute wealth from rich to poor countries. (as of July 2023) ($ million, as of July 2023) The process of designing

1813-516: The Venture Capital Firm. Self-organized funding allocation (SOFA) is a method of distributing funding for scientific research . In this system, each researcher is allocated an equal amount of funding, and is required to anonymously allocate a fraction of their funds to the research of others. Proponents of SOFA argue that it would result in similar distribution of funding as the present grant system, but with less overhead. In 2016,

1862-557: The Year' by Public Affairs News magazine. It was named 'Think-tank to Watch' in the Prospect 'Think-tank of the Year' awards in 2005 and is considered to be in international policy circles to be one of the world's leading think tanks on development. It celebrated its 50th anniversary in 2010, with guests including former ODI Fellow and UK Business Secretary, Vince Cable . As of 2014 ODI had more than 230 staff. The Chief Executive

1911-425: The capital can end up at the borrower. The lender can lend the capital to a financial intermediary against interest. These financial intermediaries then reinvest the money against a higher rate. The use of financial intermediaries to finance operations is called indirect finance . A lender can also go to the financial markets to directly lend to a borrower. This method is called direct finance . Research funding

1960-601: The creation of a High Level Advisory Group on Climate Financing (AGF) by UN Secretary-General Ban Ki-moon in February 2010. There is no formal connection between AGF and GCF, although its report is one source for debates on "resource mobilisation" for the GCF, an item that will be discussed at the GCF October 2013 Board meeting. Disputes also remain as to whether the funding target will be based on public sources, or whether "leveraged" private finance will be counted towards

2009-708: The disbursement of funds, ensuring that these should be consistent with the national objectives of the countries where projects and programmes will be taking place. The GCF Board was also charged with establishing an independent secretariat and the permanent trustee of the GCF. The fund partners with 84 organizations that include commercial and development banks , state agencies and civil society groups, which pilot and execute innovative approaches to climate programs. There are other multilateral climate funds (i.e. governed by multiple national governments) which are important for paying out money in climate finance . As of 2022, there are five multilateral climate funds coordinated by

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2058-521: The exchange of equity ownership in a company for capital investment via an online funding portal per the Jumpstart Our Business Startups Act (alternately, the "JOBS Act of 2012") (U.S.) is known as equity crowdfunding . Funds can be allocated for either short-term or long-term purposes. In economics funds are injected into the market as capital by lenders and taken as loans by borrowers. There are two ways in which

2107-523: The form of investments or loans. Corporations might provide funding for other businesses, especially in industries where there is a strategic benefit. Government funding is provided by local, state, or federal governments to support specific projects or activities. This type of funding can come in the form of grants, subsidies, or loans. Government funding is often aimed at promoting public policies or supporting economic growth and development. Angel investors are affluent individuals who provide capital for

2156-400: The former, small firms could pre-sell a product or service to start a business whereas in the latter, backers buy a certain amount of shares of a firm in exchange of money. As for reward-based crowdfunding, project creators would set a funding target and deadline. Anyone who is interested can pledge on the projects. Projects must reach its targeted amount in order for it to be carried out. Once

2205-523: The formulation of an adaptation project, and for incorporating consumer protection into a plan for off-grid solar energy. One of the most controversial aspects of the GCF concerns the creation of the Fund's Private Sector Facility (PSF). Many of the developed countries represented on the GCF board advocate a PSF that appeals to capital markets, in particular the pension funds and other institutional investors that control trillions of dollars that pass through Wall Street and other financial centers. They hope that

2254-471: The projects ended with enough funds, projects creators would have to make sure that they fulfill their promises by the intended timeline and delivery their products or services. To raise capital , you require funds from investors who are interested in the investments . You have to present those investors with high-return projects. By displaying high-level potentials of the projects, investors would be more attracted to put their money into those projects. After

2303-529: The total. As of February 2020, a total of US$ 10.3 billion was pledged and US$ 8.24 billion confirmed, as part of the Initial Resource Mobilization (IRM) period. As of Dec 2023, the GCF had a portfolio of 13.5 billion USD (51.9 billion USD including co-financing).   The lack of pledged funds and potential reliance on the private sector is controversial and has been criticized by developing countries. U.S. President Obama committed

2352-516: Was chosen as the temporary trustee. To develop a design for the functioning of the GCF, the "Transitional Committee for the Green Climate Fund" was established in Cancun too. The committee met four times throughout the year 2011, and submitted a report to the 17th COP in Durban, South Africa. Based on this report, the COP decided that the "GCF would become an operating entity of the financial mechanism" of

2401-510: Was formally established during the 2010 United Nations Climate Change Conference in Cancun as a fund within the UNFCCC framework. Its governing instrument was adopted at the 2011 United Nations Climate Change Conference (COP 17) in Durban, South Africa . During COP-16 in Cancun, the matter of governing the GCF was entrusted to the newly founded Green Climate Fund Board, and the World Bank

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