6 November 2015: The Green Climate Fund (GCF) is set to fund its first projects after the Board approved eight proposals at its 11th meeting (GCFB 11). The approved funding, which is contingent on fulfillment of specified conditions for seven of the projects, totals US$168 million. At the meeting, the Board also adopted an initial monitoring and accountability framework for accredited entities, a process to develop a strategic plan, a decision on the readiness programme and an updated set of administrative guidelines on procurement.
The GCF’s first investments include three in Africa, three in the Asia-Pacific region and two in Latin America. These projects and programmes are worth a total of US$624 million and are expected to generate US$1.3 billion in investments over five years, according to the GCF.
In Africa, the projects are: Scaling Up the Use of Modernized Climate Information and Early Warning Systems in Malawi (implementing entity: UN Development Programme (UNDP), GCF funding: US$12.3 million); Increasing the Resilience of Ecosystems and Communities through the Restoration of the Productive Bases of Salinized Lands in Senegal (Centre de Suivi Ecologique (CSE), US$7.6 million); and KawiSafi Ventures Fund in Eastern Africa (Acumen, US$25 million).
In the Asia-Pacific region, the following were approved: Supporting Vulnerable Communities to Manage Climate Change Induced Water Shortages in Maldives (UNDP, US$23.6 million); Climate Resilient Infrastructure Mainstreaming in Bangladesh (KfW, US$40 million); and Urban Water Supply and Wastewater Management in Fiji (Asian Development Bank (ADB), US$31 million). The project in Fiji is the only one approved without being contingent on additional conditions being met.
In Latin America, the approved proposals are Building Resilience of Wetlands in the Province of Datem del Marañón in Peru (Profananpe, US$6.2 million) and Energy Efficiency Green Bond in Latin America and the Caribbean (Inter-American Development Bank (IDB), US$217 million). For the latter project, the Board allocated up to US$195 million for future phases. Samy Ben-Jaafar, Director of GCF’s Private Sector Facility, said the Bond is “innovative” and “demonstrates how capital markets can move mainstream institutional funds into energy efficiency” and help “address global financing shortfalls in energy efficiency.” The GCF notes that the Intergovernmental Panel on Climate Change (IPCC) has identified the shortfall in energy efficiency financing as the largest gap in global climate finance.
The meeting’s agenda included consideration of nine accreditation proposals. While the Board discussed this item, further consideration will be postponed until GCFB 12, due to time constraints. On readiness, the Board made an additional US$14 million available for the GCF’s readiness and preparatory support programme and reaffirmed that this may include support for voluntary national adaptation plan (NAP) processes.
In addition to hearing reports on the activities of the Co-Chairs, Secretariat, Accreditation Committee, Accreditation Panel, Investment Committee, Independent Technical Advisory Panel (ITAP), Ethics and Audit Committee and Risk Management Committee, the Board decided GCFB 12 will take place during the week of 7 March 2016 in Songdo, South Korea, with the length of the meeting to be determined at a later date. Zaheer Fakir (South Africa) and Ewen McDonald (Australia) were elected to succeed Co-Chairs Henrik Harboe (Norway) and Gabriel Quijandria (Peru) for a one-year term.
GCFB 11 took place from 2-5 November 2015, in Livingstone, Zambia. [GCF Press Release, 2 November 2015] [GCF Press Release, 6 November 2015] [GCFB 11 Agenda] [GCFB 11 Decisions] [GCF Executive Director Remarks] [UN Press Release]