GCF approves 11 projects at its final Board meeting of the year

CAIRO, 

The Green Climate Fund (GCF) concluded its last Board meeting of 2017 by approving 11 new projects and programmes valued at USD 392.86 million to assist developing countries respond to climate change. The 18th meeting of the Board (B.18) approved funding for 11 climate finance initiatives during a three-day meeting in the Egyptian capital of Cairo.

Taking these projects into account, the Fund’s portfolio now consists of 54 projects and programmes amounting to USD 2.65 billion in GCF funding.

The following projects and programmes were approved at B.18:

  • FP046 – USD 8.65 million for the Renewable Energy Programme #1 – Solar in Mongolia with XacBank.
  • FP047 – USD 110 million for the GCF-EBRD Kazakhstan Renewables Framework programme in Kazakhstan with the European Bank for Reconstruction and Development (EBRD).
  • FP048 – USD 20 million for Low Emissions and Climate Resilient Agriculture Risk Sharing Facility programme in Guatemala and Mexico with the Inter-American Development Bank.
  •  FP049 – USD 9.98 million for Building the Climate Resilience of Food Insecure Smallholder Farmers Through Integrated Management of Climate Risk project in Senegal with the United Nations World Food Programme (WFP).
  • FP050 – USD 26.56 million for the Bhutan for Life project in Bhutan with the World Wildlife Fund (WWF).
  •  FP051 – USD 17.35 million for the Scaling-up Investment in Low-Carbon Public Buildings project in Bosnia and Herzegovina with the United Nations Development Programme (UNDP).
  • FP052 – USD 26.91 million for the Sustainable and Climate Resilient Connectivity for Nauru project in Nauru with the Asian Development Bank (ADB).
  • FP053 – USD 31.39 million for the Enhancing Climate Change Adaptation in the North Coast and Nile Delta Regions in Egypt project with the United Nations Development Programme (UNDP).
  • FP054 – USD 58.53 million for the Implementation Project for the Management Plan of the Lujan River Basin in Argentina with the Development Bank of Latin America (CAF).
  • FP056 – USD 38.5 million for the Scaling up Climate Resilient Water Management Practices for Vulnerable Communities in La Mojana project in Colombia with the United Nations Development Programme (UNDP).
  • FP058 – USD 45 million for the Responding to the Increasing Risk of Drought: Building Gender-responsive Resilience of the Most Vulnerable Communities project in Ethiopia with the Ethiopian Ministry of Finance and Economic Cooperation (MoFEC).

The 24 members of the GCF Board, who equally represent developing and developed countries, also took a number of key policy decisions to further strengthen the operations of the Fund and its support for high-quality climate finance initiatives. Among these were decisions to approve a simplified approvals process for certain small-scale activities, and to approve a Request for Proposals for REDD+ results-based payments.

Additionally, the Board approved the accreditation of five new partner organisations as Accredited Entities. The newly endorsed organisations, bringing GCF’s total of Accredited Entities to 59, are:

  • China Clean Development Mechanism Fund Management Centre (China CDM Fund Management Centre), based in China;
  • Department of Environment (DOE) of Antigua and Barbuda;
  • Fiji Development Bank (FDB), based in Fiji;
  • Palli Karma-Sahayak Foundation (PKSF), based in Bangladesh; and
  • Sahara and Sahel Observatory (OSS), based in Tunisia.

“My thanks go to the Government of Egypt,” said Ayman Shasly, Board Co-Chair from Saudi Arabia. “The Board has received a warm and generous welcome in Cairo, and this has resulted in a highly productive and enjoyable meeting. The decisions we have taken here will benefit climate-vulnerable developing countries and strengthen GCF’s role in delivering sustainable climate change adaptation and mitigation outcomes.”

“Cairo has been a great GCF experience,” said fellow Co-Chair Ewen McDonald from Australia. “Encouraged by a challenge for ambitious outcomes from His Excellency Dr Khaled Fahmy, Egypt’s Minister of Environment, in his opening address, the Board has taken a number of important decisions at this meeting. Notable among these is our approval for a REDD+ results-based payments system which has the potential to make a globally significant contribution to efforts to tackle deforestation.”

More than 300 participants took part in the 18th Board meeting, including observers from civil society and private sector organizations, National Designated Authorities (NDAs), Accredited Entities, and GCF Delivery Partners.

The video recording of this Board meeting is available on the GCF website.

The next GCF Board meeting, B.19, will take place in Songdo, Republic of Korea, from 27 February to 1 March 2018.

Source: GCF

GCF sets funding proposal schedule

SONGDO, 

The Green Climate Fund has set the indicative timeline for its consideration of funding proposals for the next two GCF Board meetings. The indicative timeline lists the key dates leading to the Board meetings, where the 24 Board members decide on whether to approve funding proposals brought forward by GCF Accredited Entities.

The 18th GCF Board meeting (B.18) will be held on 30 September to 2 October in 2017, while the 19th Board meeting (B. 19) will be held on 27 February to 1 March next year.

To date, GCF has approved 43 projects with a total value of USD 7.3 billion, incorporating GCF’s own contribution valued at USD 2.2 billion.

The indicative timeline follows:

B.18:

  • Disclosure of ESS reports for categories A and I-1 (high intermediation) projects – 2 June 2017
  • Deadline to submit to GCF (public sector) – 5 June 2017
  • Deadline to submit to GCF (private sector) – 5 July 2017
  • Submission to independent Technical Advisory Panel (iTAP) – 7 August 2017
  • iTAP meeting – 21 – 25 August 2017
  • Disclosure of ESS reports for categories B and I-2 (medium intermediation) projects – 31 August 2017
  • Publishing deadline – 8 September 2017
  • B.18 – 30 September – 2 October 2017

B.19:

  • Deadline to submit to GCF (public sector) – 16 October 2017
  • Disclosure of ESS reports for categories A and I-1 (high intermediation) projects – 30 October 2017
  • Deadline to submit to GCF (private sector) – 16 November 2017
  • Submission to iTAP – 18 December 2017
  • iTAP meeting – 22 – 26 January 2018
  • Disclosure of ESS reports for categories B and I-2 (medium intermediation) projects – 26 January 2018
  • Publishing deadline – 6 February 2018
  • B.19 – 27 February – 1 March 2018

PDF version

For any queries about the upcoming Board meetings and funding proposal deadlines, please contact for public sector projects, and for private sector projects.

Source: GCF

GCF Board Strengthens Fund’s Operations

SONGDO, 

The second Green Climate Fund (GCF) Board meeting of 2017 concluded today by adopting a series of decisions that will strengthen the operations of the Fund and help generate high quality funding proposals for climate finance investments in low-emission and climate-resilient projects and programmes in developing countries.

To date, the GCF Board has approved USD 2.2 billion in funding for 43 projects to be implemented in 64 countries.  The Board considered lessons learnt from the initial five rounds of funding proposals and endorsed a number of actions to improve the proposal approval process.  Drawing on the experience gained from the initial rounds of funding proposals, the Board also agreed on a number of new policies and guidelines to be developed to strengthen and scale up the Fund’s pipeline of proposals.

The Board also approved the accreditation of six new partner organisations, including four national-level Direct Access Entities from developing countries. This brings the number of GCF Accredited Entities to 54.  These organisations will now be able to develop and submit funding proposals for consideration by the Board.  The six organisations are:

  • Infrastructure Development Company Limited (IDCOL), based in Bangladesh,
  • Small Industries Development Bank of India (SIDBI), based in India,
  • Bank of Tokyo-Mitsubishi UFJ Limited (BTMU), headquartered in Japan,
  • Japan International Cooperation Agency (JICA), also headquartered in Japan,
  • Micronesia Conservation Trust (MCT), based in the Federated States of Micronesia, and
  • CDG Capital S.A. (CDG Capital), based in Morocco.

The Board also took important decisions relating to the Fund’s engagement with the REDD+ mechanism, a global program that supports developing countries’ efforts to reduce their emissions from deforestation and forest degradation, and agreed on a framework to build complimentarity and coherence with other climate funds.

“The Board has continued its disciplined focus on implementation,” said Ayman Shasly, Board Co-Chair from Saudi Arabia. “The decisions that the Board adopted will streamline GCF’s requirements for climate finance proposals, and enable the Secretariat to work more closely with countries at the early concept stage of their projects.  In light of these decisions, the Board will return to its consideration of funding proposals at its next meeting”.

“It is important that the Green Climate Fund makes a real climate impact,” said Ewen McDonald, Board Co-Chair from Australia. “Having considered our experience and progress to date, the Board focused on strengthening the Fund’s capacity to implement effective climate finance initiatives.  The decision taken on REDD+ also paves the way for a deeper engagement by the Fund with this vital climate mechanism,” he said.

More than 300 GCF Partners gathered at GCF’s headquarters in Songdo for the meeting, including observers from civil society and private sector organizations, National Designated Authorities (NDAs), Accredited Entities and climate finance delivery partners.

Video recordings of the GCF Board meetings are available on GCF’s website.

The 18th meeting of the GCF Board will be held from 30 September to 2 October 2017 in Cairo, Arab Republic of Egypt.

Source: GCF

17th GCF Board meeting to refine climate finance flow

SONGDO, 

The 17th meeting of the Green Climate Fund Board opens today, with a major goal to strengthen the Fund’s focus on targeting strong climate finance initiatives.

The GCF Board’s 24 members will work to strengthen the policies underpinning GCF’s support for projects that reduce emissions and boost the resilience of communities to climate change.

More than 300 GCF Partners have gathered at the Fund’s headquarters in Songdo, South Korea, for the two-day meeting. They include observers from civil society and private sector organizations, National Designated Authorities (NDAs), which act as the main national conduits to the Fund, as well as Accredited Entities and other Partners that assist in delivering finance for climate action.

This is the second GCF Board gathering of the year. It follows a call by the GCF Board at its 16th meeting in April to focus on implementation.

To further this goal, the start of the Board meeting today was preceded by informal consultations which focused on policy matters related to the approval of funding proposals.

Highlights of the next two days include discussions of GCF’s readiness support to boost the capacities of countries to seek and implement climate finance, the accreditation of new entities that carry out GCF-supported activities, as well as discussions on how GCF can support REDD+.

Meetings of the Board are co-chaired this year by Mr. Ayman Shasly, of Saudi Arabia, and Mr. Ewen McDonald, of Australia.

Board meetings represent timely signposts to GCF’s recent progress and future direction. During the past quarter of the year, GCF has been stepping up its transfer of funds for approved climate finance projects. See here for the latest disbursement of funds to Ecuador for REDD+.

The 17th Board meeting is being live-streamed here.

Source: GCF

GCF focuses on getting funds flowing

SONGDO,

The disbursement of Green Climate Fund financing is picking up pace, following a major focus of the Fund this year on implementing approved projects.
In GCF’s most recent disbursement of climate finance, in early June, it transferred the first USD 1 million tranche of an approved USD 6.2 million grant to help Peru’s indigenous communities manage wetlands to avoid deforestation and the release of peatland emissions.
This followed the start of another transfer of funds to XacBank in Mongolia at the end of May. The  USD 20 million private sector project is helping drive investment by medium and small enterprises in Mongolia’s fledgling low-carbon energy sector.
GCF is preparing further disbursements in coming months to get funds flowing to the 43 projects it has already approved. To achieve this aim, GCF is working closely with Accredited Entities, which propose and carry out funding proposals, to expedite the transfer of USD 2.2 billion in funds already allocated to them.
Progress is evident in the large number of Funded Activity Agreements (FAAs) signed with Accredited Entities since the end of 2016. These legal agreements, currently numbering 18, open the way for GCF’s transfer of funds.
The 16 FAAs signed during the past six months in chronological order are the following:
  • Peru – Profonanpe (FP001) – “Building the resilience of wetlands in the province of Datem del Marañón” – FAA signed on 15 December 2016
  • Namibia – EIF (PF023) – “Climate Resilient Agriculture in three of the vulnerable extreme northern crop-growing regions (CRAVE)” – FAA signed on 15 December 2016
  • Maldives – UNDP (FP007) – “Support of vulnerable communities in Maldives to manage climate change induced water shortages” – FAA signed on 3 March 2017
  • Morocco – ADA (FP022) – “Development of Argan orchards in degraded environment” – FAA signed on 17 March 2017
  • Namibia – EIF (FP024) – “Empower to adapt: creating climate-change resilient livelihoods through community-based natural resource management in Namibia (CBNRM)” – FAA signed on 5 April 2017
  • Malawi – UNDP (FP002) – “Scaling-up the use of modernized climate information and Early warning systems in Malawi”- FAA signed on 10 May 2017
  • Pakistan – UNDP (FP018) – “Scaling-up of Glacial Lake Outburst Flood (GLOF) risk reduction in Northern Pakistan” – FAA signed on 19 May 2017
  • Ecuador – UNDP (FP019) – “Priming financial and land use planning instruments to reduce emissions from deforestations” – FAA signed on 19 May 2017
  • Tuvalu – UNDP (FP015) – “Tuvalu coastal adaptation project TCAP” – FAA signed on 31 May 2017
  • Armenia – UNDP (FP010) – “De-risking and scaling up investment in energy efficient building retrofits” – FAA signed on 7 June 2017
  • SriLanka – UNDP (FP016) – “Strengthening the resilience of smallholder farmers in the Dry Zone to climate variability and extreme events through an integrated approach to water management” – 7 June 2017
  • TheGambia – UNEP (FP011) – “Large-scale ecosystem-based adaptation in The Gambia: developing a climate-resilient, natural resource-based economy” – FAA signed on 8 June 2017
  • Vietnam – UNDP (FP013) – “Improving the resilience of vulnerable coastal communities to climate change related impacts in VietNam” – FAA signed on 8 June 2017
  • Mauritius – UNDP (FP033) – “Accelerating the transformational shift to a low-carbon economy in the Republic of Mauritius” – FAA signed on 8 June 2017
  • Uganda – UNDP (FP034) – “Building resilient communities, wetland ecosystems and associated catchments in Uganda” – FAA signed on 8 June 2017
  • Samoa – UNDP (FP037) – “Integrated flood management to enhance climate resilience of the Vaisigano River catchment in Samoa” – FAA signed on 9 June 2017
More details about all of GCF approved projects are available here.
Source: GCF

GCF workshop builds climate adaptation ties in Eastern Europe and Central Asia

SONGDO,

The Green Climate Fund’s first workshop for Eastern Europe and Central Asian countries has strengthened regional approaches on adapting to climate change, according to one of the participants.

“Countries in the Balkans have been experiencing a series of natural disaster relating to climate change, including serious floods, during the past few years,” said Andrej Lakic, with Montenegro’s Ministry of Sustainable Development and Tourism Department for International Relations

“This has reinforced the need to take adaptive measures,” he said. “Since the countries of Montenegro, Serbia, Bosnia, Macedonia and Albania face similar needs, it would be useful to work more closely together.”

Mr Lakic, who is Montenegro’s focal point with GCF, said the three-day workshop, which concluded on 2 May, provided a great opportunity to stimulate thinking on how Eastern European and Central Asian countries can rectify current gaps in climate adaptation.

“While Montenegro has adopted numerous mitigation projects during the past few years, including the introduction of offset measures in tourism and transport, now is the time to begin funding adaptation action,” he said.

Mr Lakic stressed the importance of the private sector in driving investment in adaptation, adding GCF can play an important role in laying the foundation for enhanced business engagement.

Early GCF support would be useful as the private sector in this part of the world is not accustomed to many of the requirements to access GCF funding, especially those around gender and environmental safeguards, he added.

Many of the workshop participants were interested in hearing how GCF can provide support for countries planning to submit funding proposals to the Fund.

During the workshop, Ekaterine Grigalava, Georgia’s Deputy Minister of Environment and Natural Resources Protection, noted Eastern European and Central Asian countries have not been as active as other regions in accessing GCF assistance.

The workshop has helped fill knowledge gaps and strengthened ties between GCF and the region’s National Designated Authorities and focal points, as well as organizations now exploring avenues of climate finance assistance.

Some 70 participants took part in the regional workshop. This included delegates from 13 countries, representatives from eight GCF Accredited Entities, 10 National Designated Entities of the Climate Technology Centre and Network (CTCN) as well as several observer institutions from civil society and the private sector.

Source: GCF

GCF Regional workshop to help advance climate action in Eastern Europe and Central Asia

TBILISI,

Representatives from Eastern European and Central Asian (EECA) countries are gathered in the Georgian capital of Tbilisi for a three-day Green Climate Fund workshop to advance their engagement with the Fund and to expedite their access to the Fund’s resources for substantial projects for climate action.

Hosted by the GCF, with support from the Government of Georgia, the regional workshop aims to provide a platform for GCF partners in the EECA region to increase their understanding of how the GCF works and the different funding and support mechanisms available.

Sessions are covering a range of topics instrumental to helping countries tap the Fund’s resources. This includes a focus on the roles and responsibilities of National Designated Authorities (NDAs), the processes related to accreditation and the submission of funding proposals, as well as the Fund’s Readiness Programme and the Project Preparation Facility. Participants have an opportunity to learn about the role of the private sector, civil society and other stakeholders in supporting their climate change efforts.

In a recorded message delivered at the workshop’s opening session on Wednesday, the Executive Director of the GCF, Howard Bamsey stated that “…for the GCF, this is an important meeting because it is the first time that we have worked with countries of the region, in the region, in this format,” adding that the workshop is a key step enabling GCF to “listen closely to your interests and your concerns, and to help take forward your aspirations for climate action.”

Mr. Bamsey noted the Fund would like to help foster more climate action in the EECA region. He said the workshop is designed to assist countries gain access to the funds the GCF has available to support the achievement of countries’ Nationally Determined Contributions under the Paris Agreement on Climate Change.

Speaking on behalf of the Government of Georgia, Deputy Minister of Environment and Natural Resources Protection, Ekaterine Grigalava, invited participants to take full advantage of the workshop to strengthen the GCF partnership.

“I encourage you to use this opportunity to exchange experiences and share knowledge about accessing the GCF because without its support, developing countries in our region will not be able to tackle the adverse impacts cause by climate change,” said Ms Grigalava.

Deputy Minister Grigalava noted the EECA region has not been as active with the GCF as other regions, and called on participants to access the resources it has available, in particular through the Fund’s Readiness Programme.

Also speaking at the opening was Georgia’s Deputy Minister of Finance, Nikoloz Gagua, who, in his remarks, underlined the intrinsic link between sustainable economic growth and environmental sustainability. He stressed the role of financing in helping countries meet their Paris Agreement commitments.

In addition to some 20 country delegations, other participants attending the regional meeting include representatives of GCF Accredited Entities, potential entities, observer organizations, including from the private sector, and GCF Secretariat staff.

Source: GCF

GCF calls for private sector funding at key climate finance conference

BARCELONA,

The Green Climate Fund has launched a global campaign to tap private sector energies in tackling climate change during an international gathering of climate finance practitioners.

GCF announced it is offering USD 500 million to catalyse climate capital by selecting the best business ideas addressing climate change mitigation and adaptation in developing countries.

This is the first time GCF has called for proposals that specifically target the full range of climate finance opportunities in the private sector of the planet’s emerging markets.

GCF’s Private Sector Facility, a team within the Fund designed to specifically mobilize private sector resources, hosted a side-event at the innovate4climate conference in Barcelona, Spain.

The event attracted around 60 participants from the private sector investment community to learn about the Fund’s Request for Proposals (RFP) on mobilizing funding at scale. Jiwoo Choi, PSF Deputy Head, presented the Fund to the investor audience, stressing that leveraging private climate finance was one of the distinctive features of GCF.

“Catalyzing private finance is a key part of GCF’s mission,” stated Choi. “This new programme will help us leverage our funds to bring more private climate capital into developing markets.”

Sergio Pombo, PSF senior advisor, outlined the RFP which was approved by the Board at its sixteenth meeting in April. He highlighted the distinctive features of this programme, in particular that it is open to applicants who are not yet accredited to the Fund.

“We are looking for bold project proposals that unlock private finance at scale. As part of our efforts to reach new partners, this RFP is open to proposals from entities that are not yet accredited to the Fund,’ said Pombo.

Jay Koh, Founder and Managing Director of The Lightsmith Group, and member of the Fund’s Private Sector Advisory Group (PSAG), was also on the panel. Koh emphasised the willingness of the Fund to engage with the private sector, to stimulate climate investment in developing countries, including by taking a ‘first loss’ position.

“GCF is scaling up its activities with the private sector to help it overcome market barriers. I would like to congratulate the Private Sector Facility for their work in creating this programme and reaching out to find new private sector partners,” Koh commented.

‘Innovative4Climate’ is a new global dialogue of finance, business, banking, government, and multilateral leaders focused on shaping the next generation of climate finance and policy instruments.
Learn more about GCF’s new private sector campaign: Pitch for the Planet!

Source: GCF

GCF Regional Workshop for Eastern Europe and Central Asia

GCF’s first workshop for countries in Eastern Europe and Central Asia (EECA) will bring together stakeholders to enhance the region’s understanding and engagement with the GCF.

As the first regional gathering organized by the Fund in Eastern Europe and Central Asia, the three-day workshop will aim to increase participants understanding of GCF modalities and procedures, identify priority projects in partnership with Accredited Entities, and provide a platform to share experiences across key areas of the Fund.

Participants will include representatives of NDAs, government ministry officials, institutions and organizations seeking potential accreditation to the GCF, Accredited Entities, Readiness delivery partners and GCF Secretariat staff.

The regional workshop is being organized in collaboration with the Government of Georgia.

Source: GCF

What is the Private Sector Facility?

The Green Climate Fund (GCF) is committed to unleash the potential of the private sector for clean energy and climate resilience projects in developing countries. We do so by leveraging GCF’s own resources with the private sector.

At least USD 12 trillion are needed to meet the Paris climate challenge to keep a global average temperature rise well below 2 degrees Celsius, a recent study indicates.

In order to scale up GCF’s activities and meet this challenge, GCF has set up the Private Sector Facility (PSF) to fund and mobilize institutional investors and leverage GCF’s funds to encourage corporates to co-invest with us.

PSF is actively engaging with pension funds, insurance companies, corporations, local and regional financial intermediaries, and the capital markets.

HOW DOES GCF’S PRIVATE SECTOR FACILITY INVEST?

GCF can finance private sector projects relating to mitigation and adaptation activities at all levels.

GCF’s core activities include clean energy, energy efficiency, climate-related innovation, resilient infrastructure, products and services for vulnerable communities, agriculture, forestry, food, water security, and ecosystems preservation.

GCF uses flexible financial instruments (including debt, equity, and guarantees). It can combine these instruments with concessional funding to promote private sector investing in our core activities by:

  • De-risking investments, including foreign exchange and investors’ default;
  • Bundling small projects into portfolios, providing scale and making them attractive to institutional investors;
  • Supporting capacity building amongst different groups and local institutions;
  • Helping develop public-private partnerships for infrastructure resilience projects;
  • Encouraging innovation, for example by overcoming scale problems and fragmentation within the supply chain;
  • Being active in the clean energy, climate resilience and sustainability communities.

HOW TO WORK WITH THE PRIVATE SECTOR FACILITY?

Contact us. We will guide you.

It is possible to partner with GCF by becoming accredited.

Accreditation is a process following due diligence which ensures our partners share the same objectives as the Fund, and that they have extensive experience and strong financial and managerial infrastructure.

You can apply for GCF accreditation or work with an already Accredited Entity while you process your own accreditation, or work with another entity that is already accredited.

Source: GCF