A Review of the Green Climate Fund and Its Implications on Sustainable Development Goals for Developing Countries

Abstract

The Green Climate Fund (GCF), established within the United Nations Framework Convention on Climate Change (UNFCC), is a pivotal force in addressing climate change mitigation and adaptation. As climate change worsens into a worldwide disaster, the need to address its consequences gets more urgent. In response, the GCF emerges, as one of the primary climate finance mechanisms, providing a solid platform for mobilizing climate finance and facilitating transformative projects in developing nations to help them address climate-related concerns. Our systematic literature review rigorously examines the GCF’s global impact by delving into its organizational structure, funding mechanisms, and project efficacy. Employing the PRISMA methodology, we meticulously evaluate 39 peer-reviewed articles from Scopus. This review enriches the understanding of the GCF’s central role in global climate finance and sustainability, its contributions, and the challenges it faces. Our analysis reveals that the GCF demonstrates potential in balancing mitigation and adaptation through innovative approaches, including private sector engagement and equitable fund distribution. However, issues persist regarding adaptation finance accessibility for vulnerable states. To enhance effectiveness, we advocate for increased investment in decentralized, community-led solutions aligned with long-term development goals. A probable shortfall in meeting mitigation targets outlined in the Copenhagen Agreements, emphasizing the urgent need for increased financial resources. Diversifying funding sources and improving transparency are crucial for effective climate financing. This study provides vital insights to guide the GCF’s evolution and improve its efficacy in addressing climate change while advancing sustainable development globally. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2025.