Seoul: The Green Climate Fund (GCF), the largest dedicated climate fund globally, announced its approval of $686.8 million in investment for 11 climate projects across 42 countries during its Board meeting this week. These projects are expected to directly support 115.5 million people and mitigate the equivalent of 45.3 million metric tonnes of CO2 emissions.
According to Emirates News Agency, the new projects include notable first-time single-country investments in Serbia, aimed at enhancing forest resilience, and in Togo, focused on strengthening the climate resilience of vulnerable communities. These initiatives reflect GCF's commitment to increasing access and support for partners working directly on climate crisis frontlines.
The Board also decided to establish a regional presence for the Fund, headquartered in the Republic of Korea, to enhance access and increase the climate impact of its projects in developing countries. Mafalda Duarte, GCF Executive Director, emphasized the importance of localizing the Fund's efforts, stating that establishing a presence in key regions will enhance the Fund's ability to deliver on climate action commitments.
With these new approvals, the Fund's overall portfolio now includes 297 projects, with a total GCF funding amount of $16.6 billion and $62.7 billion with co-financing. The investment distribution is predominantly through grants (74%), with loans (16%) and equity (10%) supplementing the funding.
The regional investment distribution includes Africa (38%), Latin America and the Caribbean (32%), Asia Pacific (27%), and Eastern Europe, Central Asia, and the Middle East (3%). A significant portion of the adaptation envelope, 63%, is allocated to Least Developed Countries (LDC), Small Island Developing States (SIDS), and African countries.