The LDCF was established under the United Nations Framework Convention on Climate Change at its seventh session in Marrakech in 2001.

The Fund, which is managed by the GEF, addresses the special needs of the Least Developed Countries (LDCs), which are especially vulnerable to the adverse impacts of climate change. This includes preparing and implementing National Adaptation Programmes of Action, which aim to identify “urgent and immediate needs” of each LDC according to specific guidelines provided by the Least Developed Countries Expert Group.The GEF has, as of August 2009, mobilized voluntary contributions of $180 million for the LDCF.