Question map
Which of the following statements regarding 'Green Climate Fund' is/are correct? 1. It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change. 2. It is founded under the aegis of UNEP, OECD, Asian Development Bank and World Bank. Select the correct answer using the code given below.
Explanation
The correct answer is option A (1 only).
**Statement 1 is correct:** The Green Climate Fund (GCF) was established at COP 16 held in Cancun (in 2010) within the framework of the UNFCCC, and is intended to mobilise [1]a flow of climate finance to invest in low-emission and climate-resilient development.[1] The GCF supports projects, programmes, policies and other activities in developing country Parties.[2] This clearly indicates that the fund assists developing countries in both adaptation and mitigation practices.
**Statement 2 is incorrect:** The Green Climate Fund was established within the framework of the UNFCCC[1], not under the aegis of UNEP, OECD, Asian Development Bank and World Bank as mentioned in the statement. The World Bank was invited by COP to serve as the interim trustee of the GCF subject to a review three years after operationalization of the Fund.[2] The World Bank serves only as an interim trustee, not as a founding organization alongside UNEP, OECD, and ADB.
Sources- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > SUSTAINABLE DEVELOPMENT GOALS > p. 599
- [2] Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 328
PROVENANCE & STUDY PATTERN
Full viewThis is a textbook 'Parent Body Swap' trap. Statement 1 defines the mandate correctly, while Statement 2 creates a fictional administrative coalition. For every international fund, you must memorize the 'Parent Treaty' (UNFCCC) and the 'Trustee' (World Bank), and never confuse the two.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Explicitly lists GCF area of focus as Adaptation and Mitigation (including REDD).
- Identifies the Green Climate Fund as a UNFCCC financial mechanism, implying its role in climate finance.
- States GCF is intended to mobilise climate finance to invest in low-emission (mitigation) and climate-resilient (adaptation) development.
- Connects the Fund's purpose directly to financing both mitigation and adaptation activities.
- Notes the Green Climate Fund was established under the Cancun Agreements to assist developing nations in dealing with climate change.
- Provides context that GCF was created as part of mechanisms aimed at supporting developing countries.
- Explicitly states Parties at COP16 established the Green Climate Fund as an operating entity of the Convention's financial mechanism.
- Names the Convention (i.e., the UNFCCC financial mechanism) as the institutional aegis and notes governance by a GCF Board.
- Mentions the World Bank was invited by COP to serve as interim trustee, linking an international institution to its establishment.
- Specifically says the GCF was established at COP16 in Cancun 'within the framework of the UNFCCC'.
- Frames the Fund as governed by the GCF Board and intended to mobilise climate finance — confirming UNFCCC institutional context.
- Notes that the Sixteenth Conference of the Parties (COP16) produced the Cancun Agreements which established the Green Climate Fund.
- Provides supporting context that the Fund's creation was a COP decision under UNFCCC processes.
- [THE VERDICT]: Sitter. Directly covered in standard texts like Shankar IAS (Chapter: Climate Change Organizations) and Nitin Singhania.
- [THE CONCEPTUAL TRIGGER]: UNFCCC Financial Mechanisms. Understanding the specific funding arms created under the Convention (GEF, GCF, Adaptation Fund).
- [THE HORIZONTAL EXPANSION]: Memorize the 'Fund Matrix': 1) GEF (Serves 5 conventions: UNFCCC, CBD, UNCCD, Stockholm, Minamata). 2) Adaptation Fund (Originally under Kyoto Protocol, now serves Paris Agreement). 3) SCCF & LDCF (Managed by GEF). 4) GCF HQ (Songdo, S. Korea). 5) GCF Trustee (World Bank - Interim).
- [THE STRATEGIC METACOGNITION]: UPSC loves confusing the 'Founding Act' with the 'Administrator'. The GCF was founded by the *Parties* (COP16 Cancun), not by banks. The World Bank is merely a trustee. Always distinguish between political creators (COP) and administrative managers (World Bank/GEF).
References state GCF's areas of focus (adaptation, mitigation) and describe its purpose to mobilise finance for low-emission and climate-resilient development.
High-yield for UPSC because questions often ask about international climate finance instruments and their objectives. Understanding GCF's dual mandate helps answer questions on finance flows, mitigation vs adaptation priorities, and policy responses. Prepare by comparing official mandates of major funds and noting keywords like 'low-emission' and 'climate-resilient'.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 345
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > SUSTAINABLE DEVELOPMENT GOALS > p. 599
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > 201tl : > p. 322
Evidence connects the GCF to the Cancun Agreements and the broader set of UNFCCC financial mechanisms alongside the Adaptation Fund.
Important for UPSC as it links COP decisions to institutional outcomes (fund creation and funding modalities). Questions often probe which funds were created at which COP and their roles; mastering this helps in polity/environment integration answers. Study by mapping COPs to resulting mechanisms and comparing mandates.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > 201tl : > p. 322
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Adaptation Fund > p. 332
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Adaptation Fund > p. 328
References distinguish funds (e.g., Adaptation Fund focused on adaptation; GCF covers adaptation and mitigation), highlighting different funding instruments and sources.
Useful for answering nuanced UPSC questions on climate finance allocation and priorities; helps evaluate policy choices between adaptation and mitigation projects. Learn by cataloguing major funds, their funding sources, and eligible activities for quick comparative recall.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Adaptation Fund > p. 328
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 345
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > SUSTAINABLE DEVELOPMENT GOALS > p. 599
The references show the Green Climate Fund was created by a COP decision (COP16, Cancun) under the UNFCCC framework.
UPSC frequently asks about institutional origins and outcomes of major climate conferences; mastering how COP decisions create bodies (like GCF) helps answer questions on international agreements and implementation. Study COP outcomes (e.g., Cancun Agreements) and link them to resulting mechanisms; practice by mapping COP numbers to key deliverables.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 328
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > SUSTAINABLE DEVELOPMENT GOALS > p. 599
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > 201tl : > p. 322
Evidence describes the GCF as an operating entity of the Convention's financial mechanism and governed by a GCF Board.
Understanding the UNFCCC financial architecture (financial mechanism, operating entities, trusteeship) is high-yield for polity/environment questions and comparisons (GCF vs GEF vs Adaptation Fund). Focus on roles, governance, and how funds are operationalized; use tabular summaries to memorize linkages and functions.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 328
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > SUSTAINABLE DEVELOPMENT GOALS > p. 599
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 345
References note the World Bank was invited as interim trustee and Songdo (South Korea) was chosen as host city, highlighting institutional roles in establishment.
Questions often probe which multilateral organizations or countries host/serve as trustees for climate funds. Learn common trustee/host arrangements and their implications (e.g., interim trusteeship, review clauses) and relate them to governance and funding flows.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Green Climate Fund > p. 328
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Completion of new infrastructure > p. 329
The Global Environment Facility (GEF) is unique because it serves as the financial mechanism for FIVE conventions, not just climate change. It serves: UNFCCC, CBD (Biodiversity), UNCCD (Desertification), Stockholm Convention (POPs), and Minamata Convention (Mercury). GCF is exclusive to UNFCCC.
Apply the 'Incoherent Grouping' heuristic to Statement 2. OECD is a club of rich nations; ADB is a regional Asian bank; UNEP is a UN body. It is structurally illogical for a global UN fund (GCF) to be founded under the aegis of a regional bank (ADB) and an economic bloc (OECD). UN funds are founded by UN Conventions.
Connect GCF to GS-3 Environment & GS-2 IR (Climate Justice). The GCF is the operational arm of the '$100 Billion' promise made by developed nations. Its failure or success is the core metric for 'Common But Differentiated Responsibilities' (CBDR) in Mains answers.