The Green Climate Fund (GCF) has approved USD 1.225 billion in climate finance for developing countries, marking the largest single allocation in the Fund’s history.
The investment, green-lighting 17 new projects, underscores the GCF’s intensified efforts to address the escalating global demand for climate finance, particularly in emerging economies.
The approved projects, which now bring the GCF’s total portfolio to 314 projects valued at USD 18 billion (with USD 67 billion including co-financing), are set to deliver urgently needed funding for both adaptation and mitigation efforts.
A strong focus has been placed on the world’s most climate-vulnerable nations, including Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States. Notably, this round of approvals includes the first single-country GCF projects for Mauritania, Saint Lucia, and Papua New Guinea.
Among the key investments designed to mobilize private sector engagement is a substantial USD 227 million equity investment in the Global Green Bonds Initiative, aimed at unlocking new green bond markets, particularly in sub-Saharan Africa.
Furthermore, USD 200 million investment is earmarked to drive green finance in India, highlighting the GCF’s commitment to supporting climate action in one of the world’s largest emerging economies.
The 42nd GCF Board meeting (B.42), hosted by the Government of Papua New Guinea, also saw the approval of a comprehensive reform package for the GCF’s accreditation model. These reforms are designed to enhance transparency, responsiveness, and efficiency, while also promoting fairness and country ownership.
“This has been a very successful Board meeting with a record amount of funding and the adoption of some major reforms to make GCF more efficient and effective,” said Co-Chair Leif Holmberg from Sweden. “I am delighted that the Board has approved comprehensive reforms to its accreditation framework – the largest policy package ever brought to the Board – which will speed up accreditation whilst maintaining accountability, allowing us to further grow our network of partners, particularly direct access entities.”
Executive Director Mafalda Duarte highlighted the pressing need for action, particularly in the host region. “Pacific islands are facing an existential threat from climate change. Holding our Board meeting in Papua New Guinea has reinforced for me the urgency of action to protect the resilient people and incredible biodiversity of this country and others in the region. We came here to deliver that action, and we have done so, with new finance for the Pacific and for projects around the world,” Duarte affirmed. She further added, “Alongside a record volume of climate finance, this Board meeting has approved major policy decisions which support our 50 by 30 vision for GCF as we aim to become the climate finance partner of choice.”
The meeting also saw the approval of eight new partner organizations as Accredited Entities, including seven Direct Access Entities, further expanding the GCF’s global network of over 150 partners. With 101 regional or national entities now part of its network, the GCF is poised to bring climate finance closer to the countries and communities that need it most. The Board’s decision to launch a call for proposals for countries to host regional offices and an outpost of the Fund is another step in this direction, aiming to enhance the GCF’s regional presence.
