At its 39th Board meeting on July 19, 2024, the Green Climate Fund (GCF), the world’s largest dedicated climate fund, approved $1 billion in financing for 17 projects across 35 developing countries. This decision expands GCF’s portfolio to 270 projects, totalling an estimated $58.7 billion, with $14.9 billion in committed GCF funding.
The Board also accredited the Development Bank of Nigeria (DBN) as a Direct Access Entity (DAE) alongside other countries’ organisations recognised as having the capacity to drive climate action. This brings the total number of GCF Accredited Entities to 134, including 86 regional or national DAEs.
The Green Climate Fund signed Funded Activity Agreements for 10 projects after the approval. Notably, projects in Bhutan and Malawi are expected to transition from approval to the first disbursement within 15 days, setting a new record for GCF.
The Fund has intensified its focus on climate adaptation, especially in vulnerable regions. Initiatives targeting Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African nations were highlighted. Among these, GCF approved its first social protection project in Mozambique and a project aimed at enhancing resilience to extreme weather and food insecurity in the Horn of Africa.
Board Co-chair Milagros De Camps German from the Dominican Republic expressed optimism, stating, “With the approval of $1 billion for 17 new projects that will increase direct access and build resilience in developing countries, GCF’s Board is committed to ensuring strong momentum on climate action for climate-vulnerable nations. I’m heartened by the progress GCF has made so far. As the Board, we will continue to lead the efforts in providing critical financial resources by enhancing the predictability, speed, and scale of climate finance.”
GCF Executive Director Mafalda Duarte highlighted the significance of the approvals, saying, “The approval of $1 billion for 17 projects in a single Board meeting is a significant milestone demonstrating our commitment to supporting the highest aspirations of developing countries. I am thrilled that under our Board’s leadership, we have now expanded our overall portfolio to include a record 270 projects and will enable new partners to access GCF resources for the first time, for example, in Tajikistan, Nigeria, Côte d’Ivoire, and SIDS in the Indian Ocean. In another first, we’re also empowering local partners in Bhutan to drive climate action through finance disbursed in record time. I am equally grateful for our Board’s support of my vision and reform agenda for GCF.”
It is important to note that the United Nations Environment Programme (UNEP) estimates that adaptation costs faced by just developing countries will range from $140 billion to $300 billion annually by 2030 and $280 billion to $500 billion annually by 2050.