Letter from the Executive Director: reflections and farewell

Dear Friends,

As I reach the end of my four-year term as Executive Director of the Green Climate Fund (GCF), I would like to thank all of you for your support in helping GCF accelerate the transition to a low-emission, climate-resilient world.

Over the past four years, we have had to face the challenges of COVID-19 as well as those of political and economic crises. In the face of these challenges, though, the need for urgent climate action has become ever clearer with each successive extreme weather event, and with each successive scientific report on the impacts of climate change.

We have a long way still to go, but I am deeply proud of the contribution that the Green Climate Fund is making to deliver global climate action and I am very grateful to all those who make it possible.

GCF is now the world's largest climate fund. Our USD 45 billion portfolio of climate projects with USD 12 billion in GCF co-financing is supporting adaptation and mitigation projects in 129 countries. Those funds are accelerating green market transformations, catalysing the far greater flows of climate finance that are needed to deliver a climate transformation and to support the climate ambition of developing countries.

Our new GCF-1 progress report shows just how we have progressed since 2019. GCF has progressed on its organisational maturity journey. We have become more efficient, delivering faster climate finance to those most in need with codified, streamlined and increasingly automated processes. We have become more effective, building a portfolio of truly transformational projects that are delivering new climate solutions to new markets. We have become more transparent, multiplying our communication channels; disclosing our project appraisal tools; and establishing an open data library. And we have become a hub of the climate finance architecture, convening over 200 public and private sector partners to catalyse climate finance for developing countries. From small-scale community-based projects in Small Island Developing States through to multi-billion dollar programmes overcoming barriers to investment in Least Developed Countries, GCF is delivering.

There are three things which make GCF unique.

• Our network of over 200 partners, which lets us work with a huge range of organisations, public and private, large and small, international and local, direct access entities, and help us ensure that we are country-owned, to support the climate goals of developing countries.
• Our ability to provide such a range of flexible financing solutions, including grants, debt, equity, guarantees and insurance, based on the needs of the project and of the country.
• And our climate expertise, thanks to my colleagues in the Secretariat who are applying their skills to ensure our projects have high climate impact, and use an optimal mix of policy and financial instruments to de-risk climate investments.

Now GCF is preparing for our next programming period when climate action needs to be substantially scaled up to enable developing countries achieve their climate goals. We need a successful replenishment of GCF to enable the Fund to fulfill its promise. This has been my priority over recent months. It is a challenging time for any replenishment, but GCF’s strong track record, and compelling vision for the next four years as set out in its draft strategic plan, has laid the groundwork for a strong recapitalisation of the Fund. As I have met with political and policy leaders, financial contributors and partners, I have been hugely encouraged by the support for GCF and the recognition of its key role. Their active support will be key for an ambitious replenishment for GCF.

I have reached the end of my term, and we need a dynamic new leadership to take GCF into the next phase of its development. That is why I am delighted that the GCF Board has selected Mafalda Duarte as my successor. Mafalda is a proven climate leader, with a strong track record in delivering climate solutions to developing countries who are on the front-lines of the climate crisis. She has the experience and drive GCF needs, and I am confident that Mafalda will lead GCF into its next phase to deliver a successful GCF-2 programming period. Mafalda will take office on 17 July 2023, and in the meantime Henry Gonzalez, Deputy Executive Director and Chief Investment Officer, has been appointed Executive Director ad interim. I could not think of a better person to ensure a smooth transition.

It remains for me to thank all our partners for your support, partnership, and friendship during my time at GCF. I would like to pay a special tribute to all my colleagues in the GCF Secretariat, headquartered in the Republic of Korea, for their amazing work and their dedication to the Fund. My proudest legacy is the team that we have built together, who are ready to continue the journey towards a low-emission, climate-resilient future.

Thank you all.

Yours,
Yannick Glemarec