Vertical Climate and Environmental Funds (VCEFs)
VCEFs, with USD 4–5 billion annual commitment capacity, can play a catalytical role by providing concessional finance, joint finance with MDBs, creating capacity, and pipeline of projects.
2030 Goals
- Green Climate Fund (GCF) to mobilize USD 50 billion by 2030 to support net-zero transitions in developing countries, expand direct access for local and Indigenous communities, and scale up renewable energy, adaptation, and climate resilience projects.
- Global Environment Facility (GEF) to deploy at least USD 15 billion for biodiversity, climate, and land degradation, while supporting the 30x30 Initiative (protecting 30% of land and ocean by 2030) and financing sustainable food systems and deforestation-free supply chains.
- Adaptation Fund (AF) to increase financing for climate adaptation to USD 10 billion by 2030, ensuring 50% of funds go to Least Developed Countries (LDCs) and Small Island Developing States (SIDS), and promoting climate-resilient agriculture, water security, and early warning systems.
- Climate Investment Funds (CIFs) to accelerate coal-to-clean energy transitions in emerging economies, scale up financing for green hydrogen, battery storage, and climate-smart cities.
StatusModerate progress
Moderate progress
- Established over the last four decades, each VCEF has its own structure, business models, and approach to engaging with different actors (countries, MDBs and the private sector), indicating the need for building better synergies and taking a more collaborative and systemic approach to enhance access to climate finance.
- The Brazilian G20 Presidency and the SFWG provided actionable recommendations to the VCEFs through the IHLEG on operational optimization and mobilizing other sources of sustainable finance (public and private).
- At COP 29, the VCEFs committed to align and increase efforts to catalyze climate action from a range of financiers, including MDBs and the private sector.
- The VCEFs jointly launched the Climate Project Explorer, an AI-powered platform to explore climate initiatives.
Relevant Actors & Audiences
Multilateral Development Banks
World Bank , Inter-American Development Bank (IDB), European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), African Development Bank (AfDB)
International Organizations
United Nations Framework Convention on Climate Change, United Nations Environment Programme, United Nations Development Programme, Food and Agriculture Organization of the United Nations (FAO), UN World Food Programme (WFP)
Supportive Stakeholders
Rockefeller Foundation, Bezos Earth Fund, Bloomberg Philanthropies
Milestones
The below events contain milestones related to Vertical Climate and Environmental Funds (VCEFs):
June
4th International Conference on Financing for Development
Milestones
Vertical Climate and Environmental Funds (VCEFs)
- Multiple VCEFs commit to integrating both adaptation needs and gender concerns into their investments.
September
New York Climate Week 2025
Milestones
Vertical Climate and Environmental Funds (VCEFs)
- VCEFs commit to actively seek out co-financing opportunities with EMDE NDBs and commit to support needs and accreditation processes.
Resources
The below resources all pertain to the topic of Vertical Climate and Environmental Funds (VCEFs):
Climate Project Explorer
Commitments and ambition, Vertical Climate and Environmental Funds (VCEFs)
The MCFs have agreed to jointly develop and launch this platform as a single point of entry for navigating and exploring the MCF’s documents (including project documents and policies). This platform will serve as a knowledge tool to raise awareness of the value and impact of the MCFs, facilitate the exchange of information to enhance access to the funds, and promote transparency.
IHLEG Review of the Vertical Climate and Environmental Funds
Commitments and ambition, Vertical Climate and Environmental Funds (VCEFs)
The report Accelerating Sustainable Finance for Emerging Markets and Developing Economies has been prepared by the Independent High-Level Expert Group appointed by the Brazilian G20 Presidency and the G20 Sustainable Finance Working Group.