GCF APPROVES USD 686 MILLION FOR CLIMATE ACTION AND DECIDES TO ESTABLISH REGIONAL PRESENCE
By AAI Communication team
The Green Climate Fund (GCF), at its just ended 41st Board meeting, approved USD 686.8 million (USD 1.5 billion with co-financing) in GCF investment for 11 projects in 42 countries. According to a press release issued at the close of the meeting, the approved projects are expected to provide direct support to 115.5 million people and mitigate the equivalent of 45.3 million metric tonnes of Carbon emissions.
The new projects include first-time single-country investments in Serbia to enhance forest resilience and in Togo to strengthen the climate resilience of vulnerable communities. The Board meeting was presided by Co-chairs Seyni Nafo and Leif Holmberg, who were elected to chair proceedings during 2025. Co-chair Seyni Nafo is particularly happy that the 11 new projects would bring urgent needed climate finance to support developing countries.
"The 11 new projects agreed at this Board will bring urgently needed climate finance to support developing countries. It is particularly gratifying to see that we are broadening our impact, by bringing first-time projects to Togo and Serbia," said Ambassador Nafo.
Ambassador Nafo, who is also coordinator of the African Adaptation Initiative (AAI), a continental flagship helping countries with GCF readiness and other climate finance and adaptation capacity building support, is equally encouraged by the approval of five new direct access entities, reinforcing the Fund’s commitment to country ownership and delivering effective climate action at the local level.
"I am also encouraged to see that we have approved five new direct access entities, reinforcing GCF’s commitment to country ownership and delivering effective climate action at the local level. Six of the approved Funding Proposals will move straight to implementation with immediate project agreement signings, showing that the GCF is responding to the urgent need for action on the ground," added Ambassador Nafo.
And during the same meeting, the Board decided that the Fund, which is headquartered in the Republic of Korea, will establish a regional presence to bring it closer to the developing countries it serves. A regional presence will enhance access to the Fund and increase the climate impact of its projects.
GCF Executive Director Mafalda Duarte said: "If climate action is local action—which it is—then the Green Climate Fund needs to be local too. Not only as a source of finance but as a partner working on the ground. I’m pleased that the Fund has taken a historic step in establishing a presence in key regions, bringing our world-class specialists closer to those who will benefit most from their support. This decision strengthens our ability to deliver on the more than USD 680 million in new climate action commitments announced at this Board meeting, pushing our total portfolio towards USD 17 billion across 133 countries."
Meanwhile, Board Co-chair, representing developed countries constituency, Leif Holmberg from Sweden said the GCF has shown how countries are able to reaffirm their individual and collective commitment to accelerating support to climate-vulnerable communities.
"During these challenging times, GCF is showing how countries are able to reaffirm their individual and collective commitment to accelerating support to climate-vulnerable communities. It demonstrates that increasing access to vital finance on the frontlines of the climate crisis remains a top priority for the Board. In addition, the Fund’s partnerships with the private sector continue to mobilise critical additional resources, which further strengthens the GCF’s ability to deliver effective climate action at the local level," said Holmberg.
With the latest project approvals, the Fund’s overall portfolio comprises 297 projects, with a total GCF funding amount of USD 16.6 billion and USD 62.7 billion with co-financing. Investment is mostly via grants (74%), supplemented by loans (16%) and equity (10%). The investment by region is as follows: Africa (38%), Latin America and the Caribbean (32%), Asia Pacific (27%), Eastern Europe, Central Asia, and the Middle East (3%). Of the total adaptation envelope, 63% will go to Least Developed Countries (LDC), Small Island Developing States (SIDS), and African countries. GCF, a financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), serving the 2015 Paris Agreement, is mandated to support the needs of underserved countries and communities that are most vulnerable to climate change's adverse effects.
