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AfrElec CLIMATE CHANGE AfrElec

UN’s Green Climate Fund provides

$501.1mn for four new climate projects

GLOBAL THE UN’s Green Climate Fund (GCF) has allo- Management Framework.”
cated $501.1mn for four new climate projects The Board also considered positively the
around the world. Long-Term Vision on Complementarity, Coher-
The four new climate projects approved dur- ence, and Collaboration between the Green Cli-
ing the meeting will mobilise a total of $2.949bn mate Fund and the Global Environment Facility,
climate action in Africa, Asia, and Latin Amer- an initiative aimed at strengthening support to
ica, the GCF said in a statement. developing countries and maximizing the effi-
Three of the four new projects target support ciency of the climate finance landscape.
to the most vulnerable countries including Least The fund allocates funds for the $25.1mn
Developed Countries, Small Island Developing Building Climate Resilient Safer Islands in the
States, and African states. Maldives (FP165) project, which is being under-
The newly approved projects and pro- taken with the Japan International Cooperation
grammes increase the GCF total portfolio to Agency (JICA).
$8.85bnbn, worth $33.2bn including funding This GCF’s support for Small Island Devel-
from all sources. oping States (SIDS) to adapt to climate change
The Board also approved the Integrated which now amounts to a total of $649 million.
Results Management Framework (IRMF), a sig- The GCF will also provide support for the
nificant development that strengthens the GCF $33.8mn Transforming Eastern Province
policy framework and improves the Fund’s abil- through Adaptation project with the IUCN
ity to measure its impact. in Rwanda.African states, particularly Least
The IRMF has been agreed after constructive Developed Countries (LDCs) such as Rwanda,
negotiations between Board members to final- are highly exposed to climate impacts such as
ise the text. The new policy will merge existing drought, heatwaves, and changes in rainfall pat-
frameworks into an updated results architec- terns that are threatening the resilience of small-
ture. This framework will enable more consist- holder farmers.
ent measurement and reporting of results from This project is part of the $1.26bn GCF is
the project level, further boosting the ability of investing in adaptation action in Africa to help to
GCF to measure and report the impact of its protect lives, support livelihoods, and encourage
investments. sustainable management of ecosystems.
The four-day, virtual board meeting also Finally, the GCF will support the $170.9mn
approved entities for accreditation and re-ac- Leveraging Energy Access Finance (LEAF)
creditation, reviewed the performance of the Framework in six African countries, which
Fund during the COVID-19 pandemic, and dis- is being undertaken with the African Devel-
cussed further policy reforms. opment Bank.Around 570 million people in
At the close of the meeting, Co-Chair José Sub-Saharan Africa lack access to energy. The
De Luna Martínez, from Mexico, stated: “With LEAF framework will allow African states to
the addition of $500mn in new projects by the leapfrog carbon-intensive energy models by
Board, the Green Climate Fund is now investing crowding in private capital investment to deliver
nearly $9bn in low-emission, climate-resilient decentralized, renewable energy access.
development. GCF is the largest dedicated cli- This is part of GCF’s strategy to mobilise
mate fund and is playing a key role to support climate finance by leveraging public funds to
climate action in developing countries, particu- de-risk private investment – making blended
larly Least Developed Countries, Small Island finance work for early-stage markets. 15% of
Developing States, and African states.” GCF’s portfolio in grant equivalent terms tar-
Co-Chair Jean-Christophe Donnellier, from gets the private sector (33% in nominal terms).
France, added: “GCF has a critical role to play in GCF is committed to significantly increasing the
ensuring that finance is provided to developing mobilization of its private sector projects under
countries as part of our global climate commit- its Private Sector Facility.
ments. The Fund continues to improve the effi- The final project is a $271.3mn scheme to
ciency of the implementation of its portfolio and support Light Rail Transit for the Greater Met-
the Board now needs to prioritize policy reforms ropolitan Area in Costa Rica with the Central
that are needed as GCF continues to grow, as it American Bank for Economic Integration
did today with the adoption of the new Results (CABEI).™

P4 www. NEWSBASE .com Week 27 08•July•2021