GCF commits $1.26bn for climate action in developing countries

Hosted by Rwanda, the 38th Board meeting of the Green Climate Fund (GCF) took place between 5-7 March, the first Board meeting of the year. The meeting began with a memorial to honour GCF Board member, Daniel Machado da Fonseca, from Brazil, who passed away on 3 March.

The GCF Board endorsed eleven climate projects, committing USD 489.8 million of GCF resources. With co-financing, the eleven projects total USD 1.26 billion.

With the new projects approved, GCF’s overall portfolio now stands at USD 13.9 billion, with a total value of USD 53 billion of assets under management, including co-financing.

The projects contribute to GCF’s second strategic programming priorities for 2024-2027 with a strong focus on directly supporting vulnerable countries adapt to climate change. These include projects in the Cook Islands, Sierra Leone, Cambodia and Pakistan. Seven projects target Small Island Developing States (SIDS), Least Developed Countries (LDCs) and African States.

The diverse projects bring innovation, impact and are groundbreaking on several fronts. The Acumen Climate Action Pakistan Fund aims to establish a USD 80 million climate fund and is Pakistan’s first woman-led adaptation-focused fund supporting agribusinesses. In the Cook Islands, the first single-country project will be rolled out – the first brought by a national organisation (Direct Access Entity) – and the first solely targeting climate and health in the Pacific region.

Project agreements were also signed for five projects after the Board’s approval, reflecting the urgency by GCF and project partners to deliver projects on the ground.

Green Climate Fund Executive Director, Mafalda Duarte said: “Today, our Board has once again proven that the Green Climate Fund is delivering faster climate action and setting new benchmarks. Their leadership has made it possible to approve the largest number of GCF-approved initiatives led by developers from the Global South, and to begin programming with eight new implementing partners, known as Accredited Entities. I’m thrilled that two of these entities will be the first in their respective countries to access GCF resources. In addition, we reached another milestone: two project agreements signed in Kigali are immediately moving into implementation. Through these accomplishments we are also honouring the legacy of the late Daniel Machado da Fonseca, a tireless advocate for developing countries and climate action as well as Brazil’s representative on the GCF Board, whom we tragically lost this week. The least we can do in his memory is raise our collective ambition to address the crises before us.”

The GCF Board approved the accreditation of eight new organisations – six are sub-national, national or regional organisations from Jordan, Kyrgyzstan, Nepal, Mexico, Colombia and Panama.

Also on the agenda were discussions on the way forward with a GCF regional presence, exploring how better to support the countries and regions it serves; and the financing of results-based payment for REDD+ (Reducing Emissions from Deforestation and forest Degradation).

It was the first meeting for the newly appointed Co-chairs, Milagros De Camps German from the Dominican Republic and Sarah Metcalf from the United Kingdom. Victoria Gunderson, GCF Board member, and former Co-chair, was appointed Co-chair for the meeting in place of Sarah Metcalf who was unable to attend.

Members of the Board visited the GCF-backed Green Gicumbi project in northern Rwanda organised by Ministry of Environment on 7 March. The project increases the climate resilience of vulnerable communities in nine sectors of the Gicumbi district. People here are restoring and enhancing local ecosystems and the capacity of communities to sustainably manage forest resources.

The 39th Board meeting will be held in Incheon, Republic of Korea from 15-18 July 2024.

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 has over 250 projects, a portfolio of USD 13.9 billion (USD 53 billion including co-financing) delivering transformative climate action in more than 129 developing countries.

It also has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change. 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.