The 39th Board meeting of the Green Climate Fund (GCF) has concluded in South Korea with a landmark approval of $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 $58.7 billion, including $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 (Development Bank of Nigeria Plc), 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 $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 $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 $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 from October 21 to 24, 2024, in Songdo, Incheon, Republic of Korea.
Apart from the Development Bank of Nigeria Plc (DBN), two other newly accredited Direct Access Entities (DAE) organisations are: Centre for Implementation of Investment Projects within the Committee for Environmental Protection (CIIP) under the government of the Republic of Tajikistan, and Fonds Interprofessionnel pour la Recherche et le Conseil Agricoles (FIRCA), in Côte d’Ivoire.
Direct Access Entities are sub-national, national or regional organisations that need to be nominated by developing country National Designated Authorities (NDAs) or focal points.
Organisations nominated to become Direct Access Entities may be eligible to receive GCF readiness support. This funding is designed to help organisations in developing countries prepare to become Accredited Entities, as well as helping those which have already been accredited to strengthen their organisational capacities.
