The Green Climate Fund (GCF), was established in 2010 as an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). GCF aims to help developing nations tackle the impacts of climate change and realize their climate ambitions through low-emissions, resilient pathways.
The GCF is the world’s largest global climate fund dedicated to finance climate action initiatives of developing nations and most climate vulnerable countries. GCF offers financing in the form of grants, loans, guarantees, and equity. Countries like the Philippines may also request grants for capacity building, project preparation, and accreditation of additional national direct access entities (DAE).
Accredited Entities (AEs), working in conjunction with the Executing Entities (EEs), and the National Designated Authority (NDA), can draft and submit project proposals for potential funding.
Proponents seeking for funding should demonstrate how the proposal is aligned with the six (6) investment criteria of the GCF:

• Impact Potential
• Paradigm Shift Potential
• Sustainable Development Potential
• Responsive to Client’s Needs
• Promote Country Ownership
• Efficiency and Effectiveness

The GCF has the following funding modalities:

• Readiness and Preparatory Support Program (RPSP). The readiness program gives NDAs and/or focal points (FPs) grants and technical assistance to improve national institutions’ capacity to engage with and maximize access to the GCF.
• Project Preparation Facility (PPF). This modality serves AEs in developing countries by providing them with technical and financial resources for developing a project or program funding proposal. This is commonly for AEs’ access to funding for project sizes within the micro to small categories, providing them with a maximum of USD 1.5 millio n funding upon approval, and given through grants and repayable grants. PPF can include private sector projects as decided by the Fund.
• Funding Proposals (FP). This modality is available for national, regional, and international accredited entities to work directly with GCF for the approval of their full funding climate change projects and programs. AEs can submit their proposal to the GCF anytime or when the GCF has opened their request for proposals.
• Simplified Approval Process (SAP). This modality is for projects or programs that have a significant climate impact potential, such as transforming and promoting a paradigm shift to low-emission and climate-resilient development.
• Enhanced Direct Access (EDA). This modality provides DAEs with resources to strengthen country ownership of projects and programs. Through DAEs, the funding and project oversight is decided at the national and regional levels.
• Project-Specific Assessment Approach (PSAA). Launched in 2023, this modality aims to support entities in evaluating their capacity to implement GCF projects and programs. The PSAA pilot framework (April 2023 – March 2026) allows the annual evaluation of 10 funding proposals from accredited and unaccredited entities. The first-year priority is proposals from sub-national, national, and regional entities in developing countries.