Abstract
Emission mitigation actions are being undertaken at the global level to combat climate change and address potential climate risks. The Green Climate Fund (GCF) is a major source of finance to catalyze the transformation toward a low emission future in developing countries. While the importance of the GCF is widely acknowledged, quantitative evaluation of its utilization is limited. Using data envelopment analysis (DEA), the aim of this study was to perform an empirical analysis of the differences in the relative efficiency of countries regarding the implementation of the GCF on emission mitigation projects. In line with the structure of green climate funding, three performance indicators were identified as input parameters, monetary leverage effect of GCF, political environment and Research and Development (R&D) spending. Data were collected for 30 countries that received GCF. Those countries were clustered as the least developed countries (LDC), small island developing states (SIDS) and other developing countries. The findings of this study indicated that Mauritius, Lao, and Congo fully utilized the funding they received and showed satisfactory performance within the LDC and SIDS countries. Vietnam, Pakistan, Nigeria and Ecuador were also found to be the efficient frontiers among other developing countries. These results presented that decision making tools and processes should be considered to increase the efficiency level of utilization of the GCF for emissions reduction in developing countries.
Highlights
International climate change negotiations and progress in the implementation of multilateral climate agreements, namely the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, have been covering all perspectives of climate policies such as mitigation, adaptation, finance, and technology transfer
While developed countries require emission reductions efforts from developing countries, the latter point out to the lack of climate finance flows as a factor that hinders the limitation of their greenhouse gas (GHG) emissions
The aim of this study is to assess the performance of GHG emissions mitigation-based Green Climate Fund (GCF) climate finance utilization of the developing countries
Summary
International climate change negotiations and progress in the implementation of multilateral climate agreements, namely the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, have been covering all perspectives of climate policies such as mitigation, adaptation, finance, and technology transfer Among these perspectives, climate finance is highly important to reach the ultimate objective of the UNFCCC, i.e., the stabilization of greenhouse gas (GHG) concentrations at a certain level (UNFCCC, 1992). Climate finance is highly important to reach the ultimate objective of the UNFCCC, i.e., the stabilization of greenhouse gas (GHG) concentrations at a certain level (UNFCCC, 1992) In line with this objective, the Paris Agreement aims to limit the temperature increase to 1.5◦C above pre-industrial levels by directing climate finance flow toward the low GHG emissions (UNFCCC, 2015). While developed countries require emission reductions efforts from developing countries, the latter point out to the lack of climate finance flows as a factor that hinders the limitation of their GHG emissions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
