The European Bank for Reconstruction and Development (EBRD) has become the first multilateral development bank with global reach to sign an Accreditation Master Agreement (AMA) with the Green Climate Fund (GCF).
This agreement consolidates EBRD’s partnership with GCF as an Accredited Entity. These organizations are the linchpins of GCF operations as they bring forward funding proposals, and then manage and monitor these GCF projects when approved.
An Accreditation Master Agreement is the central instrument in the relationship between GCF and an Accredited Entity. It sets out the basic terms and conditions as to how the Accredited Entity and GCF can work together for the use of GCF resources.
“We are delighted with this huge vote of confidence by the Green Climate Fund,” said Sir Suma Chakrabarti, president of EBRD during the AMA signing ceremony which took place on the occasion of the IMF / World Bank Spring Meetings in the US capital on 22 April. “The EBRD is well equipped to fast track green project implementation in key developing regions that suffer both from lack of adequate resources and the know-how to respond rapidly and effectively to climate change,” he explained. “Our green agenda is a high priority and these new funds will allow us to further substantially scale up our climate finance for the benefit of millions of people.”
GCF Executive Director Howard Bamsey welcomed GCF’s first signing of an AMA with a global development bank as a great force multiplier in the Fund’s forging of new climate finance paths. “Since its foundation in the post-Cold War era, the EBRD has established an impressive track record in marshalling market forces to promote economic development,” Mr. Bamsey said. “We at GCF look forward to tapping EBRD’s experiences and its broad global reach, as we work together to unlock the necessary financial forces to respond to climate change.”
The EBRD has helped Eastern Europe adjust to open market economies since the bank was established in 1991. Its financial support is primarily focused on the private sector, in particular on micro, small and medium-sized enterprises. It uses a range of financing instruments, mainly loans, equity investments and guarantees.
The bank has already submitted projects to GCF, including a USD 1.4 billion programme designed to help the private sector promote sustainable energy across multiple countries.
Other areas of possible climate cooperation between EBRD and GCF include enhancing mitigation in energy efficiency, infrastructure and the power sector; and increasing climate resilience in water supply management.