In a significant boost for developing nations’ climate initiatives, the Green Climate Fund (GCF) has approved its largest-ever single allocation of climate finance, directing USD 1.225 billion toward 17 new projects across the Global South. The decision, made during the Fund’s 42nd Board meeting in Papua New Guinea, particularly strengthens climate resilience in some of the world’s most vulnerable regions.
The newly approved funding will benefit 36 countries, with a strong focus on Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African nations. Several countries will receive their first single-country GCF projects, including Mauritania, Saint Lucia, and Papua New Guinea, marking a crucial expansion of the Fund’s reach into previously underserved areas.
A cornerstone of the funding package includes major initiatives in Africa, with significant investments targeting the continent’s pressing climate challenges. The Fund approved a groundbreaking USD 227 million equity investment in the Global Green Bonds Initiative, aimed at unlocking new green bond markets particularly in sub-Saharan Africa. Additionally, a USD 200 million investment will catalyze green finance in India, demonstrating GCF’s commitment to expanding climate finance in emerging economies.
The approved projects address critical climate vulnerabilities across the Global South. In Nepal, funding will protect communities from Glacial Lake Outburst Floods, while in Cambodia, support will enhance climate-adaptive irrigation and sustainable agriculture. The Maldives will receive assistance for climate-resilient communities and early warning systems, and several African nations, including Ghana, Mauritania, and South Africa, will benefit from ecosystem-based adaptation projects.
The Fund is also expanding its network of regional and national partners, particularly in developing countries. Seven of the eight newly approved Accredited Entities are Direct Access Entities from the Global South, including financial institutions from Costa Rica, Côte d’Ivoire, Namibia, Belize, Lao PDR, Georgia, and Saint Lucia. This expansion brings the total number of GCF Accredited Entities to 153, with 101 being regional or national entities.
Significant reforms to GCF’s accreditation framework were also approved, aimed at increasing efficiency while maintaining accountability. The reforms include a new nine-month service standard for reviewing applications, which will accelerate the accreditation process and facilitate greater participation from developing country institutions.
Co-Chair Amb. Seyni Nafo from Mali emphasized the significance of the funding: “I am very proud that this Board meeting has approved a record amount of new climate finance for developing countries. GCF’s USD 1.225 billion investment in these new projects will improve resilience and accelerate mitigation efforts in 36 countries around the world. At a time when collective climate action is more needed than ever, GCF is stepping up to deliver on its mandate.”
Executive Director Mafalda Duarte highlighted the urgency of climate action, particularly for vulnerable regions: “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.”
The meeting’s success was further demonstrated by the immediate signing of project agreements for nine of the newly approved projects, ensuring swift implementation of critical climate initiatives across the Global South. These projects span multiple regions and focus areas, from strengthening climate resilience in the Maldives to supporting sustainable fisheries in Saint Lucia and enhancing ecosystem resilience in northern Ghana and Mauritania.
This record funding allocation brings GCF’s total portfolio to 314 projects, representing USD 18 billion in GCF resources and USD 67 billion including co-financing. The Fund’s expanding reach and growing investment in developing countries underscore its crucial role in supporting climate action where it’s needed most, working toward its mandate of fostering low-emission, climate-resilient development pathways in the Global South.
Read the press release of Green Climate Fund here
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