Addressing climate change is both urgent and expensive, especially in developing countries where its effects are felt the worst. On the one hand, new extreme weather patterns and rising sea levels are forcing people and communities to adapt the ways they live, farm, and work. On the other, all energy production, new and old must be shifted from fossil fuels to sustainable sources. After the UN Framework Convention on Climate Change, the international community has agreed that industrialized countries, who were the biggest beneficiaries of greenhouse gas pollution, should support climate projects in developing countries. These financial transfers are often made through multi-lateral climate funds, the largest of which is the Green Climate Fund. It has been operational only since 2015, yet it has funded more than 100 projects. These projects help communities adapt to the effects of climate change, in transition to clean energy production. As a new and ambitious fund, the GCF tries to learn from the past mistakes of other organizations, where climate finance had harmful consequences, such as environmental degradation or human rights violations. While there is always room for improvement, the GCF has the potential to set an example of best practices for transformative climate finance. So what makes the GCF so innovative? First, a fund aims to take a holistic approach, not just financing climate action, but also supporting social and economic development. It commits to spending the same amount on its two main goals, one, reducing emissions, and two, addressing the impacts of climate change. A quarter of all of its funding is reserved for the poorest countries. Second, in contrast to traditional development banks, the governing board of the GCF is made up of an equal number from developed and developing countries, so that recipients have an equal say in funding decisions. Recipient countries can propose or reject project ideas, set investment priorities, and get support for building domestic capacity and climate change knowledge. These ideas can come from environmental groups, government agencies, or businesses. Instead of having to go through UN agencies or development banks, as with most other climate funds, they can be given direct access to funding. Third, the GCF has committed itself to protecting and promoting human rights and has strong safeguards to avoid harm. Funded projects are supposed to be gender responsive and respect the rights of women and indigenous peoples by requiring consultations with them. Fourth, the Green Climate Fund is committed to accountability. Internally, it has several independent units to protect integrity and for monitoring and evaluation. It gives people the opportunity to complain and ask for compensation if projects go wrong and cause harm. The fund is also open to active participation from civil society, the Heinrich Bolschdiftung and many others, critically review project proposals, and provide expert input. A coalition of civil society organizations, monitor projects, and spread information about the GCF on their website called GCF Watch. Now, what does the future hold for the Green Climate Fund? As it grows and matures, the largest challenge the fund faces is replenishment, as the demand far outstrips the money available. The Green New Funding is a long and difficult political process. There is intense competition for public funding and developed countries are not generous enough to fulfill their international obligations. Much more money is needed to help communities address climate change. The continued success of the GCF is therefore crucial to achieving the goals of the Paris Agreement. If you want to know more about the topic, check out our other videos on the basic principles of climate finance and what gender responsive climate finance should look like.