With USD 10 billion pledged to date for the first replenishment of the Green Climate Fund, we started 2020 with high hopes as we stepped into the last year of the decade. Supposedly the year of climate action, 2020 became known as the year of the pandemic. COVID-19 created an unprecedented public health challenge, which added the burdens of health and economic crises on top of the global climate crisis.

By taking a proactive approach, collaborating closely with our partners, and digitalising our business processes, we were able to mitigate the impacts of the pandemic upon climate action and support a low emissions climate-resilient recovery during this most challenging of years. Over 70 per cent of the GCF project portfolio is now under implementation, and in spite of the pandemic we achieved our target of disbursing USD 1.5 billion in climate financing by the end of 2020. Notably, our three Board meetings of the year resulted in a record annual level of approval – USD 2.1 billion in GCF resources were approved for climate finance projects around the world, keeping up the momentum for climate action at a time when the world needed it the most. Last year we also made grants totalling USD 200 million from our readiness programme, building countries’ capacity to turn climate ambitions into bankable plans, and provided early-stage project development funding through our Project Preparation Facility. We increased our support for direct access to national and regional organisations, including our collaboration with the International Development Finance Club (IDFC) to promote the role of National Development Banks.

The success of any organisation - whether international or domestic, public or private, large or small - depends on its people. GCF is no exception. I am proud of the Secretariat – the talent, dedication, commitment, and perseverance of our people – for delivering record results in 2020. It was an exceptionally difficult year for the Secretariat that included the death of one of our colleagues, Leonardo Paat Jr., GCF’s Environment and Social Safeguards, Gender and Indigenous Peoples Manager, from COVID-19 complications, a loss that touched us all deeply.

This Annual Results Report provides an account of our efforts, as the world’s largest dedicated climate fund, to increase the speed and delivery of climate finance to drive the paradigm shift towards low emission and climate-resilient development pathways in line with the objectives of the Paris Agreement and the Sustainable Development Goals (SDGs).

Our strategy for the GCF 2020 – 2023 programming period is guided by our commitment to focus on achieving an increased impact for developing countries to deliver more ambitious nationally determined contributions. We aim to support the strong demand from non-Annex 1 countries for funding for high-impact adaptation and mitigation projects, while maintaining a floor of 50 per cent of adaptation allocation for vulnerable countries (LDCs, SIDS, African States). We are also working to significantly increase our resource allocation to Direct Access Entities who are closest to the needs on the ground, as well as leveraging more private investment and increasing the allocation to our Private Sector Facility.

GCF has the capacity to transform climate finance, and by doing so, to deliver on our mandate. The delayed COP26 climate conference at the end of 2021 will be a significant moment in the fight against climate change. Based on our new strategic plan and equipped with the USD 10 billion raised to date by our first replenishment, GCF will build on its 2020 achievements this year, supporting the efforts of developing countries as they take urgent climate action whilst moving towards a green, resilient recovery.

Yannick Glemarec
GCF Executive Director