GCF approves $1bn of climate finance for developing countries, accredit entities

The 39th Board meeting of the Green Climate Fund concluded with a landmark approval of USD 1.0 billion in GCF financing for 17 projects in 35 developing countries. The decision expands GCF’s portfolio to 270 projects to an expected total of USD 58.7 billion, including USD 14.9 billion in committed GCF funding.

Among the 17 projects, three projects involve first-time Accredited Entities (AEs), including a Direct Access Entity (DAE) in Bhutan set to implement a climate resilience project in the country. Eastern Europe and Central Asia received a boost with the first GCF-backed single-country project in Albania and the accreditation of a new partner from Tajikistan.

GCF signed Funded Activity Agreements for 10 projects immediately after approval. Projects in Bhutan and Malawi are expected to transition from approval to first disbursement in under 15 days, a new record for GCF.

The Fund sharpened its focus on climate adaptation, particularly in vulnerable regions. This includes initiatives in Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African nations. GCF approved its first-ever social protection project in Mozambique and a project enhancing resilience to extreme weather and food insecurity in the Horn of Africa.

The Board also approved the accreditation of six new organisations, including three first-time Direct Access Entities (DAE) from Tajikistan, Nigeria, and Côte d’Ivoire, as well as the first regional DAE representing Indian Ocean SIDS. This brings the total number of GCF Accredited Entities to 134, including 86 regional or national DAEs. The accreditation agreement with the DAE from Tajikistan was signed immediately after approval, marking a record time for such an agreement.

In addition, the Board considered key policies and strategies including a new partnerships and access strategy that will set the stage for further discussions on enhancing access and streamlining accreditation, and a proposal to finance REDD+ results-based payments with a decision on its principles and ways forward.

Board Co-chair Milagros De Camps German from the Dominican Republic said: “With the approval of USD 1 billion for 17 new projects that will increase direct access and build resilience in developing countries, GCF’s Board is committed to ensuring strong momentum on climate action for climate-vulnerable nations. I’m heartened by the progress GCF has made so far. As the Board, we will continue to lead the efforts in providing critical financial resources by enhancing the predictability, speed, and scale of climate finance.”

Board Co-chair Sarah Metcalf from the United Kingdom said: “This has been a very productive Board meeting with the approval of USD 1 billion of investments in a highly diverse portfolio of projects. The results of this Board meeting, and the breadth of our discussions, including on improving access, demonstrate the continued evolution of the Fund and the Board’s ongoing commitment to support transformative climate action in developing countries.”

GCF Executive Director Mafalda Duarte said: “The approval of USD 1 billion for 17 projects in a single Board meeting is a significant milestone that demonstrates our commitment to supporting the highest aspirations of developing countries. I am thrilled that under our Board’s leadership, we have now expanded our overall portfolio to include a record 270 projects and will enable new partners to access GCF resources for the first time, for example, in Tajikistan, Nigeria, Côte d’Ivoire, and SIDS in the Indian Ocean. In another first, we’re also empowering local partners in Bhutan to drive climate action through finance disbursed in record time. I am equally grateful for our Board’s support of my vision and reform agenda for GCF.”

The 40th meeting of the GCF Board will be held on 21-24 October 2024 in Songdo, Incheon, Republic of Korea.

The six new accredited organisations are: Center for Implementation of Investment Projects within the Committee for Environmental Protection (CIIP) under the government of the Republic of Tajikistan, based in Tajikistan; Development Bank of Nigeria Plc (DBN), based in Nigeria; Fonds Interprofessionnel pour la Recherche et le Conseil Agricoles (FIRCA), based in Côte d’Ivoire; Indian Ocean Commission (IOC), based in Mauritius;  Islamic Development Bank (IsDB), based in Saudi Arabia and Meridiam SAS (Meridiam), based in France.

The Green Climate Fund (GCF) is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries.

GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.

GCF has a portfolio of 270 projects worth USD 14.9 billion (USD 58.7 billion including co-financing) delivering transformative climate action in 130 developing countries. It has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change.