Key Takeaways
- • The Green Climate Fund approved $1.97 billion for 21 projects at its latest board meeting, lifting its total funding in the year to a record $3.2 billion, according to executive director Mafalda Duarte.
- • The approvals include $682 million for six private-sector initiatives, underscoring the fund's push to mobilise private capital.
- • The fund's cumulative investments reached $22.3 billion across 379 projects, with $86.4 billion once co-financing is included.
- • Historical mobilisation has been $3 of additional resources per $1 invested ($4.5 for private-sector projects), rising to $9 last year; Duarte said the target should exceed 10x.
- • The fund is preparing its third replenishment round, with a first-ever policy allowing non-sovereign and alternative contributions, ahead of COP31 in Turkey in early November.
Summary
The Green Climate Fund (GCF), the world's largest multilateral climate investment fund, approved record funding for projects at its latest board meeting, according to its executive director Mafalda Duarte, who spoke to Reuters on Thursday. The fund approved $1.97 billion for 21 projects, bringing its total funding in the year to a record $3.2 billion. The figure includes $682 million for six private-sector initiatives.
The approvals arrive ahead of the COP31 climate talks in Turkey in early November, against a fractious political backdrop in which richer countries have been reluctant to commit additional money amid other financial and political pressures. Duarte said the fund has demand for more than $11 billion in funding and hopes COP31 will deliver a strong signal of political support for a very strong replenishment.
The fund is preparing for its third replenishment round. Duarte said a first-ever policy allowing contributions from non-sovereign and alternative sources could broaden its funding base beyond national governments. To help attract that capital, the fund is developing co-investment platforms in which sovereign and non-sovereign investors could partner in particular sectors, projects and markets.
Mobilisation remains a central objective. The fund has historically mobilised $3 of additional resources for every $1 it invests, and $4.5 for its private-sector projects. That ratio rose to $9 last year, but Duarte said there is further to go, stating that multipliers should be higher than 10 for each dollar of GCF resources, while describing her view as "very conservative."
To date, the fund's total investments stand at $22.3 billion across 379 projects, or $86.4 billion once co-financing is included, according to Reuters.
The approvals arrive ahead of the COP31 climate talks in Turkey in early November, against a fractious political backdrop in which richer countries have been reluctant to commit additional money amid other financial and political pressures. Duarte said the fund has demand for more than $11 billion in funding and hopes COP31 will deliver a strong signal of political support for a very strong replenishment.
The fund is preparing for its third replenishment round. Duarte said a first-ever policy allowing contributions from non-sovereign and alternative sources could broaden its funding base beyond national governments. To help attract that capital, the fund is developing co-investment platforms in which sovereign and non-sovereign investors could partner in particular sectors, projects and markets.
Mobilisation remains a central objective. The fund has historically mobilised $3 of additional resources for every $1 it invests, and $4.5 for its private-sector projects. That ratio rose to $9 last year, but Duarte said there is further to go, stating that multipliers should be higher than 10 for each dollar of GCF resources, while describing her view as "very conservative."
To date, the fund's total investments stand at $22.3 billion across 379 projects, or $86.4 billion once co-financing is included, according to Reuters.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.