GCF approves record $1.97bn climate finance
The Green Climate Fund (GCF) has approved a record $1.97 billion in climate financing for 21 new projects, in the largest single approval in the history of the Fund.
The approvals were made at the Fund’s 46th Board Meeting (B.46), held at its headquarters in Songdo, South Korea, from October 26 to 29.
With the latest approvals, the GCF’s total financing commitments for 2026 have now reached $3.3 billion, also a new annual record.
The Fund attributed the increased financing capacity to balance sheet efficiency measures introduced at its previous Board meeting, which unlocked over $4 billion in additional investment capacity.
The new approvals bring the GCF’s portfolio to 379 projects and programmes, with total GCF financing commitments of $22.3 billion across Africa, Asia-Pacific, Latin America and the Caribbean, and Eastern Europe, Central Asia and the Middle East. Including co-financing, the portfolio is now valued at $87.3 billion.
The Fund also reported progress on its efficiency reforms, with 13 of the 15 projects assessed under its Efficient GCF standard meeting the required benchmarks. The projects recorded an average review period of six months, against a nine-month target.
In a major boost to country ownership, Direct Access Entities (DAEs) will manage 34 per cent of the funding approved at the meeting.
5 of the newly approved projects are the first single-country projects for Algeria, Cameroon, Moldova and Yemen, with Cameroon securing two projects.
The approvals also include the first direct sovereign loan responding to the Belém Call to Action for the Congo Basin Forests.
Two Brazilian projects, FP326 and FP327, are also the first GCF-funded initiatives to emerge from a country platform supported through the Fund’s Readiness Programme, under the Brazil Climate and Ecological Transformation Investment Platform.
The Board also approved 16 new accreditation applicants, 9 of which are Direct Access Entities, further expanding the network through which developing countries can access climate finance.
13 of the newly accredited institutions are the first to be approved under the GCF’s Revised Accreditation Framework.
The accreditation process recorded an average review time of 4 months, compared with the 9-month service standard.
Among the new partners is the Maldives Finance and Leasing Company Private Limited (MFLC), which becomes the first national Direct Access Entity in the Maldives.
Ahead of the GCF-3 replenishment, the Board also approved two landmark contribution policies to broaden the Fund’s financing base. These include an updated Policy for Contributions for GCF-3, and the Fund’s first-ever Policy for Contributions from Other Sources, aimed at mobilising resources from non-sovereign and alternative funding sources.
The Board unanimously reappointed Mafalda Duarte as GCF Executive Director for a second 4 year term, in recognition of her leadership in implementing reforms that have improved efficiency, expanded access to climate finance and increased private sector mobilisation.
Duarte described the decision as a strong endorsement of the Fund’s reform agenda.
“I am deeply grateful for the Board’s unanimous support in asking me to serve as Executive Director of GCF for a 2 term. I see it as an unequivocal vote of confidence in our reform agenda and overall ambition for the Fund,” she said.
She noted that reforms implemented over the past three years had begun delivering tangible results through a more efficient accreditation framework, improved project due diligence and better balance sheet management, alongside record approvals and increased support for countries that have historically received inadequate climate financing.
“We will continue to build on this momentum and consolidate the reforms, while ensuring the organization is equipped to deliver at a higher scale and with a clear focus on the greatest systemic impact,” Duarte added.
The meeting also marked the final Board session co-chaired by Sweden and Ambassador Seyni Nafo of Mali, Leif Holmberg, after 2 years of service.
Holmberg said the record approvals and major policy decisions had laid a strong foundation for the Fund’s third programming cycle, while Nafo highlighted the growing role of national and regional institutions in managing climate finance.
“Approving almost $2 billion at this Board Meeting is what delivering at scale means: more finance, through country institutions, reaching more countries and communities,” Nafo said.
The GCF currently operates through a network of 193 Accredited Entities, implementing projects in more than 130 countries, including 128 national and regional Direct Access Entities.
The latest decisions come as developing countries continue to demand increased, predictable and accessible climate finance to implement their climate commitments and build resilience against climate change impacts.
Source: Blueprint
