The Green Climate Fund Board closed its 13th meeting on Thursday (June 30) in Songdo, South Korea. The meeting was anticipated to be a key shift for the UN climate financing entity from operational consolidation to its core task of funding mitigation and adaptation projects.
At the previous meeting in March 2016 the GCF Board approved a series of decisions to resolve operational issues and gaps, including the adoption of the Fund’s first Strategic Plan, the Work Plan for 2016, and the accreditation of new entities to finance projects and programmes.
The next main priorities, addressed during the 13 Board meeting (or B.13), concerned the approval of new project proposals, further accreditation of entities to partner with the Fund, the establishment of risk guidelines for credit and investment, the assessment of the proposal pipeline and the programmatic approach to funding proposals.
According to GCF official release, at the June meeting the Board approved the first nine projects of 2016, for a total USD 256.6 million in GCF funding. This represents a further progress from the previous’ year financing activity (eight projects financed in 2015 for a total GCF investment of USD 168 million) but it is still far from the aspirational target of approving USD 2.5 billion in funding proposals by the end of 2016, announced in February.
As of May 2016, the GCF pipeline comprised 41 public and private sector funding proposals which request a total GCF funding of USD 2.4 billion to support projects and programs totaling USD 6.6 billion in overall investment, GCF documentation reports.
In order to increase the number of financeable proposals the Board at B.13 adopted interim risk and investment guidelines and announced a pilot program of USD 200 million to support countries’ decision-making authority.
“We still need more ambitious, paradigm-shifting proposals,” said Co-Chair Zaheer Fakir (South Africa). “B.13 has demonstrated that the GCF is ready to step up its project approvals and we want countries and accredited entities to respond by bringing us more proposals of increasing high quality and ambition.”
So far the Green Climate Fund has raised USD 10.3 billion equivalent in pledges from 42 state governments. Almost all pledging countries have also signed their arrangements, confirming a total contribution of USD 9.9 billion.
(Image: Atols in Tuvalu – one of the newly GCF-approved projects will address coastal adaptation in the small island state of Tuvalu. Photo credit: Tomoaki INABA/Flickr)