United Nations Framework Convention on Climate Change
The contribution of countries to climate change and their capacity to prevent and cope with its consequences vary enormously. Under the Convention and the Protocol, developed country Parties (Annex II Parties) provide financial resources to assist developing country Parties for implementing the Convention. To facilitate this, the Convention designated the GEF as the financial mechanism, subject to review every four years. The GEF will also serve the Paris Agreement reached by 195 nations at the COP21 in Paris.
The financial mechanism is accountable to the COP, which decides on its climate change policies, program priorities, and eligibility criteria for funding, based on advice from the Subsidiary Body For Implementation.
In addition to providing guidance to the GEF, Parties have established three special funds: the Special Climate Change Fund (SCCF) and Least Developed Countries Fund (LDCF), under the Convention and managed by the GEF; and the Adaptation Fund (AF), under the Kyoto Protocol for which the GEF provides secretariat services.
The relationship between the Conference of Parties to the UNFCCC and the GEF Council was agreed to in a memorandum of understanding (MOU) contained in decision 12/CP.2 and decision 12/CP.3.