By Simon Jessop
LONDON (Reuters) – The Green Climate Fund (GCF), the world’s largest fund aiding developing countries in addressing climate change impacts, announced on Friday the approval of $686.8 million in financing during a board meeting this week. The Seoul-based organization stated that this investment would facilitate the involvement of other financial partners, potentially mobilizing around $1.5 billion for 11 projects spanning across 42 countries and extending support to 115 million individuals.
Among the approved projects are initiatives to enhance forest resilience in Serbia and to strengthen climate resilience in vulnerable communities in Togo. These endeavors bring the GCF’s portfolio to nearly $17 billion, predominantly in the form of grants.
GCF board Co-chair Leif Holmberg remarked, “During these challenging times, GCF is demonstrating how countries can reassert their commitment to accelerating assistance to climate-vulnerable communities, both individually and collectively.” He emphasized that enhancing access to crucial financial resources at the forefront of the climate crisis remains a principal focus for the Board.
The board’s decision comes after the recent withdrawal by the U.S. government of financial commitments to the GCF as part of a broader revamp of U.S. development initiatives following the election of Donald Trump.
In addition to announcing the fresh funds, the GCF board agreed to establish a “regional presence” to enhance proximity to the countries it serves and amplify the climate impact of its projects. GCF Executive Director Mafalda Duarte stated, “If climate action is local action – which it is – then the Green Climate Fund needs to be local too. Not just as a financing source but as a collaborative partner operating on the ground.”
Geographically, a significant portion of the GCF’s investments, approximately 38%, are directed towards Africa; 32% towards Latin America and the Caribbean; 27% towards the Asia Pacific region; and 3% towards Eastern Europe, Central Asia, and the Middle East.
(Editing by William Maclean)
