The wheels of climate finance are turning: the Green Climate Fund (GCF) will soon start distributing
The Green Climate Fund (GCF), set up to become the key medium for securing and allocating finance for climate mitigation and adaptation, took one step closer to distributing funds last week. The Fund was established by 194 governments to uniquely bring together public and private investments to help advance the global paradigm shift towards low‐emission and climate resilient growth in developing countries.
At its ninth meeting on the 26 th of March in Songdo, Republic of Korea, the GCF Board decided to accredit seven institutions, allowing them to submit proposals to access the Fund's resources. As soon as the proposals are approved, the accredited institutions will be able to start directing funding to the communities most exposed to the effects of climate change. The funding will support a variety of activities that promote resilience and reduce emissions. These include, among others, reducing deforestation, installing renewable energy and supporting drought-resistant agriculture.
The Green Climate Fund accepts applications for accreditation on an ongoing basis through an online accreditation system. It intends to build a country‐driven and diverse set of partner institutions across the world, through public, private and civil society organizations. The Fund's multi-tiered accreditation process is exceptional in that it allows a varied range of institutions—from the world's largest multilateral development banks to small community-based organizations in developing countries—to access and organise funding that corresponds to their respective strengths and capacities.
The accredited institutions include the following:
- Centre de suivi écologique (CSE) from Senegal, which focuses on combating desertification and protecting coastal areas. In 2010, CSE was the first national institution to be accredited and to implement a project through the Adaptation Fund , the first international climate fund to take the pioneering step of accrediting developing country institutions.
- Fondo de Promoción de las Áreas Naturales Protegidas del Péru (PROFONANPE) that specializes in funding biodiversity conservation and managing protected areas. Like CSE, PROFONANPE is also accredited to the Adaptation Fund.
- the Secretariat of the Pacific Regional Environment Programme (SPREP), an intergovernmental organization of Pacific Island countries and territories, based in Samoa, which focuses on protection and sustainable development of the Pacific region's environment
- the Acumen Fund, Inc. (Acumen), a well-respected private venture capital fund that invests in developing country entrepreneurs and businesses working to alleviate poverty and advance sustainable development. The social impact investment fund works on improving the lives of low income communities in Africa and Asia, especially in healthcare, agriculture and clean energy.
Three international organisations were also accredited: the Asian Development Bank (ADB), Kreditanstalt für Wiederaufbau (KfW), and the United Nations Development Programme (UNDP).
The Board decision comes well in advance of the 21st Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) at which governments will negotiate a Universal Climate Agreement (UCA).