Green Climate Fund invests USD 1 billion for developing country climate action, launches first replenishment

The 21st meeting of the Green Climate Fund (GCF) Board ended today in Bahrain, approving over one billion dollars of new projects and programmes to support climate action in developing countries, and formally launching the Fund’s first replenishment.

The 19 new projects amount to a total investment from GCF of USD 1,038 million, and including co-financing the projects will channel over USD 4,244 million of climate finance for low-emission, climate-resilient development. GCF now has a portfolio of 93 projects amounting to over USD 4,605 million of GCF resources.

At the close of the four day meeting the Board decided to launch the process for the Green Climate Fund’s first formal replenishment, marking a key moment in the development of the world’s largest dedicated fund for climate action.

Co-Chair Lennart Båge stated, "The B.21 Board meeting exceeded expectations with more than a billion dollars of important projects approved, and the launch of the GCF replenishment process."

Co-Chair Paul Oquist stated, "Climate finance and climate project formulation are the two greatest bottlenecks to climate action in the developing countries. GCF has a critical role to play in both."

Javier Manzanares, Executive Director ad interim, stated, "With a rapidly growing portfolio, accelerating implementation on the ground, and a pipeline of USD 17 billion showing huge demand, GCF is now entering its first replenishment ready to step up its support of developing countries’ climate action."

The Board meeting also approved the applications of 16 new Accredited Entities, the partner organisations that implement GCF projects. GCF now has 75 Accredited Entities, 41 of which are direct access, providing national and regional channels for developing countries to access GCF funds, as well as via GCF’s international Accredited Entities.

The Board also made a number of other significant decisions, including adopting a selection process for the recruitment of a new Executive Director and appointing Javier Manzanares as interim Executive Director, deciding to initiate a performance review of GCF to be carried out by the Independent Evaluation Unit, and selecting and appointing the World Bank as GCF’s trustee. The Board also held in-depth discussions on developing a process for decision-making in the absence of consensus.

GCF has approved 42 new projects in 2018, mobilising a total of USD 8,056 million in climate financing since the start of the year (including co-financing). During 2018 it has also made a rapid acceleration in implementation on the ground. GCF now has 39 projects under implementation, worth USD 1.6 billion in GCF resources that are being deployed as climate finance in support of developing countries’ climate ambitions under the Paris Agreement.

End notes

The twenty-first GCF Board meeting approved the following projects and programmes:

• FP083 – USD 100 million for Indonesia Geothermal Resource Risk Mitigation Project with World Bank
• FP084 – USD 43.4 million for Enhancing climate resilience of India’s coastal communities with UNDP
• FP085 – USD 49 million for Green BRT Karachi in Pakistan with ADB
• FP086 – USD 101.4 million for Green Cities Facility in Albania, Armenia, Georgia, Jordan, Moldova, Mongolia, Serbia, The Former Yugoslav Republic of Macedonia, and Tunisia with EBRD
• FP087 – USD 22 million for Building livelihood resilience to climate change in the upper basins of Guatemala’s highlands with IUCN
• FP089 – USD 35.8 million for Upscaling climate resilience measures in the dry corridor agroecosystems of El Salvador (RECLIMA) with FAO
• FP090 – USD 29.9 million for Tonga Renewable Energy Project under the Pacific Islands Renewable Energy Investment Program with ADB
• FP091 – USD 28.6 million for South Tarawa Water Supply Project in Kiribati with ADB
• FP092 – USD 67.8 million for Programme for integrated development and adaptation to climate change in the Niger Basin (PIDACC/NB) in Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, Guinea, Mali, Niger (the), and Nigeria with AfDB
• FP093 – USD 28.3 million for Yeleen rural electrification project in Burkina Faso with AfDB
• FP094 – USD 41.9 million for Ensuring climate resilient water supplies in the Comoros Islands with UNDP
• FP095 – USD 279.7 million for Transforming financial systems for climate in Benin, Burkina Faso, Cameroon, Cote d'Ivoire, Ecuador, Egypt, Kenya, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tanzania, Togo, and Uganda with AFD
• FP096 – USD 21 million for DRC green mini-grid program in Democratic Republic of Congo with AfDB
• FP097 – USD 15.5 million for Productive investment initiative for adaptation to climate change (CAMBio II) in Costa Rica, Dominican Republic (the), El Salvador, Guatemala, Honduras, Nicaragua, and Panama with CABEI
• FP098 – USD 55.6 million for DBSA Climate finance facility in Eswatini, Lesotho, Namibia, South Africa with DBSA
• FP099 – USD 100 million for Climate Investor One in Burundi, Cameroon, Djibouti, Indonesia, Kenya, Madagascar, Malawi, Mongolia, Morocco, Nigeria, Uganda with FMO

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

• SAP002 – USD 8.6 million for Climate services and diversification of climate sensitive livelihoods to empower food insecure and vulnerable communities in the Kyrgyz Republic with WFP
• SAP003 – USD 2.16 million for Enhancing climate resilience of the water sector in Bahrain with UNEP
• SAP004 – USD 10 million for Energy efficient consumption loan programme in Mongolia with XacBank

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

• Caixa Economica Federal (CEF) based in Brazil
• Fondo para la Acción Ambiental y la Niñez (Fondo Acción) based in Colombia
• IDFC Bank Limited (IDFC Bank) based in India
• Ministry of Finance and Economic Management (MFEM) based in the Cook Islands
• National Rural Support Programme (NRSP) based in Pakistan
• Nordic Environment Finance Corporation (NEFCO) based in Finland
• Pegasus Capital Advisors (PCA) based in the United States of America
• Austrian Development Agency (ADA, Austria) based in Austria
• Compañía Española de Financiación del Desarrollo S.A. S.M.E. (COFIDES) based in Spain
• Financiera De Desarrollo Territorial S.A. (Findeter) based in Colombia
• Fundo Brasileiro para a Biodiversidade (Funbio) based in Brazil
• LandBank of the Philippines (LandBank) based in the Philippines
• Protected Areas Conservation Trust (PACT), based in Belize
• BNP Paribas S.A. (BNP Paribas), based in France
• Consortium of International Agricultural Research Centers (CGIAR), based in France
• Inter-American Investment Corporation (IDB Invest), based in the United States of America

* The Board decided to defer its consideration of proposal FP082, Catalyzing Climate Finance (Shandong Green Development Fund), until its next meeting.