INSIDER: The Green Climate Fund’s Proposed Approach to Costs: Not Fit for Adaptation

The World Resources Institute criticizes a Green Climate Fund (GCF) proposal that would require project proponents to separate 'climate' components from 'development' components to determine 'incremental cost' funding. The author contends that this approach oversimplifies the reality of developing countries, where adaptation and development are often inseparable, and risks excluding urgently needed projects from funding. The document further argues that the concept of a 'zero cost baseline' is unrealistic and that the proposal lacks transparency, leaving funding decisions to arbitrary Board negotiations.

• The GCF proposal requires project proponents to identify a 'baseline project'—what a similar project would look like and cost in a hypothetical world without climate change—and subtract this from the total cost to determine the 'incremental cost' the GCF should fund.
• The proposed costing method is flawed because it forces a distinction between adaptation and development that is impractical in regions where the two are inextricably linked, potentially preventing projects from moving forward in countries with high sovereign debt or limited finance access.
• The 'zero cost baseline' concept—where the GCF covers full costs if a project would be unnecessary without climate change—is deemed unrealistic because climate change typically exacerbates existing vulnerabilities rather than creating entirely new needs.
• The proposal lacks clear guidance on how the Board exercises discretion to cover costs beyond the incremental amount, which the author claims perpetuates a system of opaque and arbitrary last-minute negotiations.

APA

World Resources Institute (2019). INSIDER: The Green Climate Fund’s Proposed Approach to Costs: Not Fit for Adaptation. https://www.wri.org/technical-perspectives/insider-green-climate-funds-proposed-approach-costs-not-fit-adaptation

Chicago

World Resources Institute. INSIDER: The Green Climate Fund’s Proposed Approach to Costs: Not Fit for Adaptation. 2019. https://www.wri.org/technical-perspectives/insider-green-climate-funds-proposed-approach-costs-not-fit-adaptation.

Wikipedia

{{cite press release |author=World Resources Institute |title=INSIDER: The Green Climate Fund’s Proposed Approach to Costs: Not Fit for Adaptation |date=5 July 2019 |url=https://www.wri.org/technical-perspectives/insider-green-climate-funds-proposed-approach-costs-not-fit-adaptation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{worldresourcesinstitute2019insider, author = {{World Resources Institute}}, title = {{INSIDER: The Green Climate Fund’s Proposed Approach to Costs: Not Fit for Adaptation}}, publisher = {World Resources Institute}, year = {2019}, month = jul, url = {https://www.wri.org/technical-perspectives/insider-green-climate-funds-proposed-approach-costs-not-fit-adaptation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }