UN Green Climate Fund to Pay Quarter of Money to Islands, Africa

Feb 24, 2014 8:45 am ET

Feb. 24 (Bloomberg) -- The UN Green Climate Fund, set up to help finance projects that cut emissions in poorer nations and help them adapt to a warming planet, will pay at least a quarter of its money to the most vulnerable nations.

The fund was set up by the United Nations to help channel some of the $100 billion a year of climate aid that developed countries have pledged to provide by 2020. The fund remains uncapitalized while its board finalizes how it will operate. It plans its initial fund-raising later this year.

The fund aims to make payouts equally between mitigation projects that reduce carbon output and adaptation projects to protect against the effects of climate change, according to a statement posted on its website after a meeting that concluded Feb. 21 in Bali, Indonesia. At least half of the adaptation funding will go to the most vulnerable island states, African nations and least developed countries, it said.

“Decisions taken this week ensure that the fund can help developing countries to cope with the devastating impacts of climate change and become more climate-resilient,” Jose Maria Sarte Salceda, co-chair of the fund, said in the statement.

--Editors: Reed Landberg, Randall Hackley