At the conclusion of its 32nd meeting, the Board of Directors of the Green Climate Fund (GCF) gave their approval to four new climate projects totaling USD 301.5 million in funding from the GCF and USD 1.7 billion in co-financing. In all, USD 325.2 million worth of GCF financing has been approved for climate action. This figure takes into account the approval of funding for a project’s second tranche.
The addition of these projects brings the entire portfolio of the Global Climate Fund to USD 10.4 billion in GCF resources and USD 39 billion when co-financing is taken into account.
The Board of Directors decided to adopt an upgraded version of the Simplified Approval Process (SAP), which will broaden and streamline access to climate funding for low-scale projects in the least developed countries (LDCs), small island developing states (SIDS), and African states.
A new private-sector strategy framework was also adopted, which will strengthen GCF’s engagement with the private sector and help to meet key strategic objectives. Finally, the Board made decisions on strategic planning and programming related to the Fund’s upcoming replenishment, including a discussion on its secondary performance review carried out by the Independent Evaluation Unit.
Hosted by Antigua and Barbuda, the four-day meeting was the first in-person meeting for Board members since the pandemic began. The island state also hosted a Technical Programming Dialogue for the Caribbean organized by GCF on 19-21 May on the margins of the meeting, convening National Designated Authorities (NDAs) and Accredited Entities (AEs) to explore regional programming priorities and opportunities.
Co-Chair Tlou Emmanuel Ramaru, from South Africa, stated: “With the allocation of USD 325.2 million in climate financing by the Board, the Green Climate Fund is now investing USD 10.5 billion in low-emission, climate-resilient development. I’m particularly pleased to see the approval of new projects in vulnerable countries with two projects targeting Small Island Developing States and Least Developed Countries.”
Co-Chair Jean-Christophe Donnellier, from France, said: “Significant strides in policy consultations were made at this Board meeting towards private sector strategy and simplification of the approval process. 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 note progress was also made in strategic programming. These are critical measures for GCF’s future direction as we look ahead to GCF’s second replenishment.”
GCF Executive Director Yannick Glemarec stated: “I thank Antigua and Barbuda for graciously hosting the 32nd Board meeting, which has been a highly productive one. This Board meeting and the technical programming dialogue illustrate how critical it is to deliver climate finance to SIDS, which are at the frontlines of climate change. GCF continues to accelerate climate finance with the approval of four new projects, including one in a SIDS country. The adoption of a more simplified project approval process and a private sector strategic framework will take GCF to the next level in increasing access and mobilizing climate financing from the private sector for climate-vulnerable countries.”