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GCF releases $1 billion for climate investments in developing nations

CAPE TOWN – The board of the Green Climate Fund (GCF) has released $1 billion to finance climate investments, low carbon and climate resilient projects in developing countries. This package was approved at the recently held 27th meeting of the board of the Green Climate Fund. The board also adopted the Updated Strategic Plan for the Green Climate Fund 2020-2023, setting an ambitious direction for GCF during its first replenishment period.

Commenting on the adoption of the Updated Strategic Plan, Co-Chair Sue Szabo, from Canada, said the adoption of the Updated Strategic Plan was a key achievement that will help the Fund continue to promote a low-emission and climate resilient future. 

Concessional debt funding for energy access companies

Up to 16 projects were given the green light for funding by the Board amounting to a value of USD 1.01 billion, raising the value of GCF’s total portfolio to USD 7.2 billion. An estimated 548 million Africans have no access to electricity, companies that are accelerating energy access in Africa set to benefit from programmes. The Green Climate Fund acknowledges the negative impact the COVID-19 pandemic has had to the operations of energy access companies hence they have provided instruments for relief to them.

“Energy access companies in the Sub-Saharan Africa region are playing a major role in providing clean energy access to vulnerable people, but they now find their continued existence in peril due to the economic effects of the ongoing COVID-19 pandemic. The Energy Access Relief Facility (“EARF”) is a concessional debt fund that is intended to provide energy access companies with vital liquidity during this crisis, in the form of low-interest, unsecured junior loans.” says GCF.

Relief for none energy related climate investments

In addition to funding for energy access, other none energy related projects in Sub-Saharan Africa also got direct funding through the Simplified Approval Process (SAP). Projects that got will get funding under the SAP are:

  • USD 9.9 million for Climate proofing food production investments in Imbo and Moso basins in the Republic of Burundi with IFAD
  • USD 10 million for Enhancing Climate Information Systems for Resilient Development in Liberia (Liberia CIS) with African Development Bank (AfDB)
  • USD 9.9 million for Gums for Adaptation and Mitigation in Sudan (GAMS): Enhancing adaptive capacity of local communities and restoring carbon sink potential of the Gum Arabic belt, expanding Africa’s Great Green Wall with Food Aid Organization (FAO)

The Green Climate Fund (GCF) Board also approved the accreditation application for KCB Bank Kenya Limited (KCB) and Camco Management Limited during the virtual meeting.

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