Climate Finance

What is Climate Finance?

  • The United Nations Framework Convention on Climate Change (UNFCCC) Standing Committee on Finance defines climate finance as “finance that aims at reducing emissions and enhancing sinks of greenhouse gases and aims at reducing vulnerability of, and maintaining and increasing the resilience of, human and ecological systems to negative climate change impacts.”

In Grenada, as in many small island developing states, climate finance plays a crucial role in addressing the unique challenges posed by climate change. It serves as a vital tool in facilitating the transition to a low-carbon, climate-resilient economy, supporting mitigation, adaptation, and other climate-related activities.

Mitigation efforts are supported through funding for projects such as renewable energy, energy efficiency, and sustainable transport systems. These initiatives not only help reduce greenhouse gas emissions but also contribute to Grenada's sustainable development goals.

Adaptation is another key focus, with climate finance supporting projects aimed at building resilience to climate impacts. This includes efforts to manage water resources, adapt agricultural practices, and enhance infrastructure resilience, all crucial aspects for Grenada's vulnerability to climate change.

Technology development and transfer are also critical. Climate finance helps facilitate the adoption of climate-friendly technologies, such as renewable energy technologies, which can significantly contribute to Grenada's mitigation and adaptation efforts.

Capacity building is essential to ensure effective planning, access, and management of climate finance. Training, institutional strengthening, and knowledge sharing initiatives supported by climate finance are instrumental in enhancing Grenada's ability to address climate challenges.

Grenada benefits from climate finance through various international agreements and mechanisms designed to support small island developing states. These include the Paris Agreement, which aims to strengthen the global response to climate change, and the Green Climate Fund, which was established to help developing countries like Grenada mitigate and adapt to climate change. Other funds are available including, Global Environmental Facility, Clean Technology Fund, Forest Investment Fund and BioCarbon fund. Each requires applicants to adequately align with fund objectives and satisfy specific criteria. The Green Climate Fund requires the prior engagement with and approval of projects by the appointed NDA of the proposing country.

For a list of climate funds from multilateral and bilateral institutions, click here.