GCF approves final funding for 2016, missing the aspirational target of 2.5 bn

The Green Climate Fund approved eight new projects and programmes valued together at USD 315.24 million, according to an official note released on Friday (Dec. 16) after the GCF Board’s fifteenth meeting in Apia, Samoa.

With the last funding proposals approved for this year, the total GCF resources committed in 2016 amount to around USD 1.3 billion.

“This year has demonstrated that the Fund is rapidly gathering pace with regard to scaling up climate finance,” said Board Co-Chair Zaheer Fakir (South Africa). “I am proud of the progress we have made over the past 12 months in improving Fund performance and growing our portfolio of investments.”

The final outcome for 2016 represents a significant progress from last year’s financing activity (eight projects financed in 2015 for a total GCF investment of USD 168 million) but it fell short of the aspirational target of approving USD 2.5 billion in funding proposals by the end of 2016, announced in February.

According to Climate Home, concerns arise over a possible withdrawal by US president-elect Donald Trump of the US contribution to the Fund, amounting to USD 3 billion.

As of December 2016, the Green Climate Fund has raised USD 10.3 billion equivalent in pledges from 43 state governments. The objective is for all pledges to be converted into contribution agreements within one year from the time at which they are made. Almost all pledging countries have also signed their arrangements, confirming a total contribution of USD 9.9 billion.

At the meeting in Apia, the Board also elected its Co-Chairs for 2017. Ewen McDonald will continue to serve as developed country Co-Chair, while the developing country role will pass to Mr. Ayman Shasly (Saudi Arabia), representing the Asia Pacific group.

 

(Image: Apia Coast, Samoa. Photo credit: Michael Coghlan/Flickr)