Preliminary results of a climate simulation with a 2-D cloud resolving model (CRM) embedded into each grid column of a global climate model are presented. CRM replaces the moist convection and large-scale condensation (stratiform) parameterizations, and it also allows for explicit computation of the global cloud fraction distribution for radiation computations. The simulated geographical distributions of the total rainfall, precipitable water, cloud cover, and Earth radiation budget look very reasonable.