Green Climate Fund Approves Record $1.225 Billion for Climate Projects

The Green Climate Fund (GCF), the world's largest multilateral climate fund, has approved a record $1.225 billion for 17 new climate projects, primarily targeting regions in Asia and Africa. This decision was made during the 42nd GCF Board meeting, hosted by the Government of Papua New Guinea.

The newly approved projects encompass a diverse range of initiatives aimed at both mitigation and adaptation efforts. Notable among them is a $227 million equity investment in the Global Green Bonds Initiative, designed to expand green bond markets in 10 countries, particularly in sub-Saharan Africa. Additionally, a $200 million investment has been allocated to the India Green Finance Facility to scale renewable energy and energy efficiency projects. In East Africa, a $150 million investment aims to support nearly 18 million people by enhancing food security and climate resilience.

These new projects increase the GCF’s portfolio to $18 billion across 133 countries. The Board also approved reforms to the accreditation model, aiming to reduce the accreditation time for Direct Access Entities from 30 months to under nine months, thereby enhancing efficiency and country ownership.

This substantial investment comes amid a projected 17% decline in official development assistance in 2025, highlighting the GCF's commitment to supporting developing countries in addressing climate challenges.

Seyni Nafo, GCF Co-Chair, emphasized the urgency of the Fund's actions, stating, "At a time when collective climate action is more needed than ever, GCF is stepping up to deliver on its mandate."

The approved projects are expected to significantly bolster climate resilience in vulnerable regions, particularly in Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African nations. Investments in renewable energy and energy efficiency, such as the India Green Finance Facility, are anticipated to stimulate economic growth, create jobs, and reduce energy poverty. The East Africa Food System project aims to improve food security for nearly 18 million people, addressing both immediate needs and long-term agricultural sustainability.

The Green Climate Fund's recent decisions mark a significant milestone in global climate finance, reflecting a concerted effort to enhance the scale, efficiency, and accessibility of funding for climate action in developing countries.