GCF to Fund 11 Projects in 42 Countries

The Green Climate Fund (GCF) has $686.8 million ($1.5 billion with co-financing) in GCF investment for 11 projects in 42 countries that are expected to provide direct support to 115.5 million people and mitigate the equivalent of 45.3 million metric tonnes of CO₂.

The new projects include first-time single-country investments in Serbia to enhance forest resilience and in Togo to strengthen the climate resilience of vulnerable communities, GCF said.

The South Korea-headquartered GCF also decided that the Fund will establish a regional presence to bring it closer to the developing countries it serves. A regional presence will enhance access to the Fund and increase the climate impact of its projects.

With the latest project approvals, the Fund’s overall portfolio comprises 297 projects, with a total GCF funding amount of $16.6 billion and $62.7 billion with co-financing. Investment is mostly via grants (74%), supplemented by loans (16%) and equity (10%).

The investment by region is Africa (38%), Latin America and the Caribbean (32%), Asia Pacific (27%), Eastern Europe, Central Asia, and the Middle East (3%). Of the total adaptation envelope, 63% will go to Least Developed Countries (LDC), Small Island Developing States (SIDS), and African countries.

Two of the approved projects illustrate GCF’s ability to leverage private sector investment. In partnership with La Banque Agricole – a first-time project for a national direct access entity – a Green Climate Finance Facility that fosters climate-smart agriculture will be established in Senegal.

The other private sector project establishes a sustainable land fund in partnership with Mirova to address deforestation for agriculture in several countries. This project was approved under the Project-Specific Assessment Approach (PSAA) pilot initiative, which is part of GCF’s continued effort to streamline access and facilitate wider partnerships.

The pilot provides a one-step route to funding by assessing an entity’s capacity to meet GCF accreditation standards simultaneously with the project review. The second PSAA project to be approved is the RE-GAIN initiative to scale solutions for food loss in Africa, in partnership with AGRA.

The UN Early Warning for All initiative was boosted with the approval of a major multi-country project that will protect lives and livelihoods in many at-risk countries. GCF’s Project Preparation Facility supported the development of five of the projects.

The GCF also approved six new project implementing partners, including five national and regional partners, to support the Fund’s commitment to direct access in developing countries. Burkina Faso has its first direct access entity, while Armenia has its first private sector direct access entity.

Supporting Climate Finance

GCF’s Co-chair Seyni Nafo from Mali said that the 11 new projects agreed at the GCF Board meeting will bring urgently needed climate finance to support developing countries.

“It is particularly gratifying to see that we are broadening our impact, by bringing first-time projects to Togo and Serbia. I am also encouraged to see that we have approved five new direct access entities, reinforcing GCF’s commitment to country ownership and delivering effective climate action at the local level. Six of the approved funding proposals will move straight to implementation with immediate project agreement signings, showing that the GCF is responding to the urgent need for action on the ground,” Nafo added.

Board Co-chair Leif Holmberg from Sweden said that the funding demonstrates that increasing access to vital finance on the frontlines of the climate crisis remains a top priority for the Board. In addition, GCF’s partnerships with the private sector continue to mobilise critical additional resources, which further strengthens the GCF’s ability to deliver effective climate action at the local level.