Earth Today | GCF approves US$325.2 million for accelerated climate action

THE BOARD of the Green Climate Fund (GCF) recently approved four new climate projects valued at US$301.5 million in GCF funding and US$1.7 billion in co-financing. Including the approval of tranche two funding for an approved project, US$325.2 million of GCF funding was approved for climate action.

The approvals came at the board's 32nd meeting held in Antigua and Barbuda last month. The new projects raise GCF's total portfolio to US$10.4 billion in GCF resources and US$39 billion, including co-financing.

At the same time, the board adopted an updated Simplified Approval Process, increasing and simplifying climate finance access for small-scale projects in Least Developed Countries, Small Island Developing States (SIDS) and African States.

A new private sector strategy framework was also adopted, which will strengthen GCF's engagement with the private sector and help to meet key strategic objectives. Finally, the board made decisions on strategic planning and programming related to the fund's upcoming replenishment, including a discussion on its secondary performance review carried out by the Independent Evaluation Unit.

FIRST IN-PERSON MEETING

The four-day meeting was the first in-person meeting for board members since the COVID-19 pandemic began. Antigua and Barbuda also hosted a Technical Programming Dialogue for the Caribbean organised by GCF, also in May, on the margins of the meeting, convening National Designated Authorities and Accredited Entities to explore regional programming priorities and opportunities.

“With the allocation of US$325.2 million in climate financing by the board, the Green Climate Fund is now investing US$10.5 billion in low-emission, climate-resilient development. I'm particularly pleased to see the approval of new projects in vulnerable countries with two projects targeting Small Island Developing States and Least Developed Countries,” noted co-chair, Tlou Emmanuel Ramaru from South Africa in a May 20 news release from the board.

“Significant strides in policy consultations were made at this board meeting towards private sector strategy and simplification of the approval process,” added co-chair Jean-Christophe Donnellier from France.

“These are clear indications that the fund continues to improve the efficiency of the implementation of its portfolio and the board policies that are needed to support GCF's maturation as the world's largest climate fund. We are pleased to note progress was also made in strategic programming. These are critical measures for GCF's future direction as we look ahead to GCF's second replenishment,” he said further.

The 32nd GCF board meeting approved:

• US$26.2 million for the Vanuatu Community-based Climate Resilience Project with Save the Children Australia;

• US$65.3 million for Climate Change: The New Evolutionary Challenge for the Galapagos with Corporación Andina de Fomento; and

• US$200.0 million for India E-mobility Financing Programme with Macquarie Alternative Assets Management Limited.

“GCF signed a project agreement (known as Funded Activity Agreement) for a climate resilience project in Vanuatu, immediately upon board approval of the funding decision reflecting GCF's commitment to move rapidly to project implementation and delivering finance quickly to SIDS and other vulnerable countries,” the release noted.

US$10.0 million for Pakistan Distributed Solar Project with JS Bank was also approved and US$23.8 million as tranche two funding for Promotion of Climate-friendly Cooking: Kenya and Senegal with GIZ. Tranche one funding was approved by the board at the 22nd board meeting.