Green Climate Fund Board maintains climate momentum in midst of COVID-19 by approving USD 878.8 million of new funds

The Green Climate Fund (GCF) continues empowering developing countries to take climate action in the face of the COVID-19 pandemic with its allocation of USD 878.8 million in new financing at its 26th Board meeting, which wound up today.

The 26th Board meeting approved 15 projects, raising GCF’s total portfolio of climate finance to USD 6.2 billion. It added Afghanistan and Sudan to the list of over 100 countries receiving GCF support to reduce greenhouse gas emissions and enhance climate resilience.

The four-day Board meeting, held virtually for the first time, also approved two new Accredited Entities, which propose and implement climate projects funded by GCF.

The approved projects, listed below and in more detail here, range from GCF’s first results based payment for REDD+ in Indonesia, enhancing hurricane resilience in Antigua and Barbuda, and a bundled private sector initiative that decarbonises industry across seven countries.

While covering a broad geographic range, the approved projects share a common capacity to drive climate action by leveraging COVID-19 recovery efforts - including strong job creation and safeguarding livelihood components of the climate initiatives.

After the Board meeting, Co-Chair Nauman Bashir Bhatti, from Pakistan, said: “Even during these difficult times, we need to continue, and indeed upscale, our support for the climate ambitions of developing countries. Climate finance also constitutes a key enabler for resilient recovery from the COVID-19 pandemic.”

Fellow Co-Chair Sue Szabo, from Canada, said: “GCF cannot afford to stand still in the midst of the COVID-19 pandemic. The ability of this first ever virtual Board meeting to take forward the full range of business and create substantial, new finance flows shows GCF is very much open for business, while it also reflects the strong demand in developing countries to forge innovative ways to generate green, resilient recovery.”

GCF Executive Director Yannick Glemarec stated: “GCF has a key role to play to maintain climate ambition in the era of COVID-19. This successful Board meeting is a testimony to all GCF partners and staff who work relentlessly despite the terrible challenges caused by the pandemic. GCF will continue striving to improve the speed and efficiency in which we respond to developing country needs.”

The 26th GCF Board meeting approved the following projects and programmes:

• USD 17.2 million for Afghanistan Rural Energy Market Transformation Initiative – Strengthening Resilience of Livelihoods Through Sustainable Energy Access with UNDP (FP129)
• USD 103.8 million for Indonesia REDD+ Results Based Payments for Results Period 2014-2016 with UNDP (FP130)
• USD 27.4 million for Improving Climate Resilience of Vulnerable Communities and Ecosystems in the Gandaki River Basin, Nepal with IUCN (FP131)
• USD 38.6 million for Enabling Implementation of Forest Sector Reform in Georgia to Reduce GHG Emissions from Forest Degradation with GIZ (FP132)
• USD 32.7 million for Resilience to Hurricanes in the Building Sector in Antigua and Barbuda with DOE_ATG (FP133)
• USD 28.2 million for Colombia REDD+ Results-based Payments for Results Period 2015-2016 with FAO (FP134)
• USD 38.0 million for Ecosystem-based Adaptation in the Indian Ocean – EBA IO with AFD (FP135)
• USD 165.2 million for Resilient Landscapes and Livelihoods Project (in Ethiopia) with World Bank (FP136)
• USD 30.1 million for Ghana Shea Landscape Emission Reductions Project with UNDP (FP137)
• USD 88.9 million for ASER Solar Rural Electrification (in Senegal) with BOAD (FP138)
• USD 25.6 million for Building Resilience in the Face of Climate Change within Traditional Rain Fed Agricultural and Pastoral Systems in Sudan with UNDP (FP139)
• USD 258.0 million for High Impact Programme for the Corporate Sector with EBRD (FP140)

The following projects were also approved under the Simplified Approval Process (SAP):

• USD 10.0 million for Forest Resilience of Armenia, Enhancing Adaptation and Rural Green Growth via Mitigation with FAO (SAP014)
• USD 10.0 million for Promoting Zero-deforestation Cocoa Production for Reducing Emissions in Côte d’Ivoire (PROMIRE) with FAO (SAP015)
• USD 5.0 million for Fiji Agrophotovoltaic Project in Ovalau with FDB (SAP016)

The GCF Board also approved the accreditation application of the following organisations:

• La Banque Agricole (LBA) based in Senegal,
• United Nations Industrial Development Organization (UNIDO) based in Austria.

Editor’s Note: Sumitomo Mitsui Banking Corporation (SMBC) has decided to defer its application to become a GCF Accredited Entity. SMBC has treated the comments and concerns raised regarding its application seriously, and will therefore work to improve its accreditation application for consideration at a future Board meeting, no later than the 28th meeting.