Green Climate Fund Board approves new climate funding, bringing assets under management to USD 40 billion

The Green Climate Fund (GCF) Board has approved four new climate projects valued at USD 380.7 million in GCF funding and USD 1.0 billion with co-financing, whilst also launching the process for the Fund’s replenishment for the 2024-2027 period. With the newly approved projects, GCF’s portfolio now stands at 200 projects with a total value of USD 10.8 billion in GCF resources, USD 40.2 billion including co-financing.

Held in GCF’s host city of Incheon, the Board meeting was the first to be held in-person in the Republic of Korea since November 2019.  During the four-day meeting, the Board also adopted new policies including an adaptation framework that will guide GCF’s approach and scope for providing adaptation support, as well as principles and a process for enhancing the impact potential for adaptation and mitigation projects.

A formal decision was also made to launch the second replenishment for GCF for 2024 – 2027 (GCF-2). This launch will be followed by consultations on the strategic programming direction for GCF-2 as the GCF-1 programming period (2020 - 2023) ends next year. A pledging conference for the replenishment will be held in September 2023.

The Board also heard a report on the activities of the Secretariat with updates on the Project Preparation Facility, the Readiness and Preparatory Support Programme and portfolio measures, and discussions on risk management matters and on the review of the financial terms and conditions of GCF’s financing instruments.  A draft accreditation strategy was discussed with the consideration of four accreditation proposals, which were approved.

Co-Chair Tlou Emmanuel Ramaru, from South Africa stated: “I thank all participants at this Board meeting for their ongoing, progressive work to support GCF and its efforts to help developing countries respond to the impacts of climate change. I’m heartened to see the approval of four new projects that target Least Developed Countries, Small Island Developing States and African States, as well as policies that will strengthen GCF’s programming and operations.  These developments will pave the way for a stronger GCF as it enters its second replenishment cycle.”

Co-Chair Jean-Christophe Donnellier, from France, said: “Fruitful exchanges have enabled the Green Climate Fund to make progress towards climate rationale and adaptation.  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 have launched the GCF’s second replenishment during this meeting and we are looking forward to constructive exchanges with all potential contributors to set GCF’s future direction.”

GCF Executive Director Yannick Glemarec stated: “The past four days of the Board meeting have been highly productive with rich discussions on GCF’s future direction, particularly in the context of GCF’s replenishment.  The Fund continues to accelerate programming and with this Board meeting, our portfolio now stands at USD 40 billion in total assets, including USD 10.8 billion in GCF resources.

Thanks to the frontloading of some contributors, we will build on this momentum and scale up our programming at the next Board meeting.”

The 33rd GCF Board meeting approved the following projects:

• USD 18.5 million for Ouémé Basin Climate Resilience Initiative (OCRI) Benin with Food and Agriculture Organization of the United Nations (FAO) (FP187);
• USD 17.2 million for Climate Resilient Fishery Initiative for Livelihood Improvement in the Gambia (PROREFISH Gambia) with Food and Agriculture Organization of the United Nations (FAO) (FP188);
• USD 200.0 million for E-Mobility Program for Sustainable Cities in Latin America and the Caribbean with Inter-American Development Bank (FP189); and
• USD 145.0 million for Climate Investor Two with Dutch Entrepreneurial Development Bank (FMO) (FP190).

Further details on the projects can be found on the GCF website.

The GCF Board approved the reaccreditation of Asian Development Bank (ADB), based in the Philippines and European Bank for Reconstruction and Development (EBRD), based in the United Kingdom; the reaccreditation and accreditation type upgrade of United Nations Environment Programme (UNEP), based in Kenya; and accreditation type upgrade of the World Food Programme, based in Italy.

Finally, on the sidelines of the Board meeting, GCF signed project agreements (Funding Activity Agreements; FAA) for two climate resilience projects in Benin (FP187) and Gambia (FP188) with FAO immediately after their Board approval.  As well, an FAA was signed with Infrastructure Development Company Limited (IDCOL) for a previously approved project promoting innovative private-sector investment in energy-saving technologies for Bangladesh’s textile industry (FP150).