Sweden has decided to increase financial support to three major climate funding mechanisms:
- A doubling of its support to the Green Climate Fund – from 4 billion SEK to 8 billion SEK from 2020-2023;
- 520 Million SEK to the Adaptation Fund from 2019-2022
- 520 Million SEK to the LDCF Fund from 2019-2022
The increased contributions are an expression of Sweden taking climate change seriously and Sweden’s continued leadership in the mobilization of climate financing and commitment to achieve the global financing goal of USD 100 billion per year from 2020 for climate action which is key for the implementation of the Paris Agreement, and at the same time contribute to the fulfillment of Agenda 2030. Sweden is part of all three funds’ Board of Directors. Follow-up and implementation mechanisms encompass regular board meetings, annual reports and reviews. The purpose is to increase the predictability of Swedish core support; strengthen Sweden's dialogue with and influence in the funds; promote a wider donor base; and contribute to increased efficiency in resource utilization.
In four and a half years, the fund has so far allocated USD 5.23 billion to 111 projects in 99 countries and mobilized an additional USD 12 billion in co-financing. During the same period, GCF has also supported 126 countries aimed to build preparedness and mobilize climate action and financing. Sweden's past contribution corresponds to a burden share of approximately 5.64 percent. A doubling to SEK 8 billion probably means that Sweden becomes the fifth largest donor in absolute terms and retains its position as the largest donor per capita. So far, both DE, NO, FR and UK have announced a doubling of their contributions.
AF: Since 2010, the Adaptation Fund has committed US$ 564 million, including supporting 84 concrete adaptation projects with about 6 million direct beneficiaries. Sweden is the largest per capita donor and second largest donor in absolute terms to the Adaptation Fund.
LDCF: Sweden is one of the largest donors to the fund, the largest per capita, and has its own board seat. Sweden has concluded agreements on annual support to the fund, to date a total of approximately SEK 1 billion. The fund delivers satisfactory results but is underfunded.
Climate change poses substantial risks to agriculture, health, water supplies, food production, nutrition, ecosystems, energy security, and infrastructure. Left unaddressed it threatens the achievement of the SDGs.
GCF is part of the so-called Climate Convention (UNFCCC) financial mechanism and thus an important instrument for financing the implementation of the developing countries & Nationally Determined Contributions (NDCs) under the Paris Agreement. The fund also plays a key role as a bridge builder in the multilateral climate financing architecture and is expected to contribute to the consolidation of the current climate finance landscape, which today is characterized by fragmentation.
The GCF finances both emission reduction efforts through investments in renewable energy and energy efficiency as well as climate adaptation measures with the aim of increasing the adaptability of countries and building resilience to the negative effects of climate change with a 50:50 balance between mitigation and adaptation action
With both the AF’s and the LDCF’s focus on adaptation, Sweden further increases its financing for adaptation projects, responding both to the urgent needs for adaptation measures as well as continued challenges in mobilizing and scaling up adaptation financing.
The LDCF was designed to address the special adaptation needs of the Least Developed Countries under the UNFCCC. As part of its mandate, the LDCF contributes to capacity building and strengthening of countries’ resilience to climate change; and to the preparation and implementation of National Adaptation Programmes of Action (NAPAs) and the National Adaptation Plan (NAP) process. Projects are implemented by national actors and in line with countries’ own priorities. LDCF focuses primarily on climate smart agriculture, sustainable forest management, building of climate resilient societies in rural areas and coastal zones, and strengthening of water resource management, etc. The Adaptation Fund was established under the Kyoto Protocol of the UN Framework Convention on Climate Change.
Increased financial support to the GCF, Adaptation Fund and LDCF therefore responds directly to the achievement of SDG 13, and is interlinked with all other areas of the 2030 Agenda, in particular to target 17.3 on mobilizing resources for developing countries. Mobilizing efforts to tackle climate change is also aligned to Sweden’s broader ambition of highlighting the links between Climate, Peace and Security (SDG 16), promote food security (SDG 2), combat the spread of disease (SDG 3) and access to clean water (SDG 6).