The Cancún agreements make it clear that funds made available to developing countries as climate finance, including through the GCC, should be “new” and “additional” to existing development aid.  The condition that the funds must be new means that the commitments should be in addition to the commitments made in previous years. With regard to additionality, there is no strict definition of the term, which has already caused serious problems in assessing the additionality of emission reductions through CDM projects, which has led to counter-productivity and even fraud.   While climate finance generally relies only on commitments from developed countries, the $10.3 billion pledged to the CCF also contains some (relatively small) contributions from developing countries.  During COP-16 in Cancun, the matter of the GCF leadership was handed over to the New Green Climate Fund Board and the World Bank was chosen as a temporary agent.  In order to develop a conception of the functioning of the GCC, the “Transition Committee for the Green Climate” was also created in Cancun. The Committee met four times during 2011 and presented a report to the 17th COP in Durban, South Africa. On the basis of this report, the COP decided that the “CCF would become an operational entity of the financial mechanism” of the UNFCCC and that the necessary rules should be adopted at COP-18 in 2012 to ensure that the GCC “is responsible for the COP and operates under the leadership of the COP”.  Researchers at the Overseas Development Institute say that in the absence of this last-minute agreement on a government instrument for the GCC, the African COP would have been considered a failure.  In addition, the CCF Committee has been tasked with developing rules and procedures for the disbursement of funds to ensure that they are in line with the national objectives of the countries in which projects and programmes are implemented.
The CCF Steering Committee was also responsible for setting up an independent secretariat and the permanent representative of the GCC.  The Green Climate Fund (GCC) is a fund established under the UNFCCC as the operational entity of the financial mechanism to help developing countries adapt to and mitigate climate change. The GCF is based in Incheon, South Korea. It is chaired by a 24-year-old college board and assisted by a secretariat. Within the GCC, funds are also available for project preparation activities and climate-financed “preparedness”. To support project preparation, the Preparation Facility Project (PPF) supports accredited entities (AEs) in the preparation of the project and program. It aims in particular to support direct access units and small category micro projects. Please note the separate entries related to GCF monitoring support and GCF project readiness. The lack of promised funds and potential dependence on the private sector are controversial and have been criticized by developing countries.  It is equally important that the GCC demonstrates its effectiveness in pursuing the ambitious institutional agenda that contributors have recommended as part of the replenishment of the next PGC Strategic Plan currently being prepared. .