The Green Climate Fund (GCF) has approved more than $1 billion funding for new projects and programs to help mitigate climate change in developing countries.

This is the world’s largest dedicated fund for climate action.

GCF will make a total investment of $1,038 million for 19 new projects. It will also include co-financing projects totaling over $4,244 million driving low-emission and climate-resilient development. This increases the GFC’s project portfolio to 93 amounting to over $4,605 million of GCF resources.

The decision was made at the 21st board meeting of GCF at Manama, Bahrain.

“Climate finance and climate project formulation are the two greatest bottlenecks to climate action in the developing countries. GCF has a critical role to play in both,” said Paul Oquist, Co-Chiar at the meeting.

Javier Manzanares, Executive Director ad interim said, “With a rapidly growing portfolio, accelerating implementation on the ground, and a pipeline of $17 billion showing huge demand, GCF is now entering its first replenishment ready to step up its support of developing countries’ climate action.”

In 2018, GCF has so far approved 42 new projects with a total of $8,056 million in climate financing. Currently, it has 39 projects under implementation amounting to $1.6 billion to support the climate ambitions of developing countries under the Paris Agreement.

Increasingly, a host of international financial institutions have announced their plans to pump in more funds to expand renewable projects across the globe.

For instance, recently, the International Finance Corporation (IFC) issued its inaugural Indonesian Rupiah Komodo green bond. It has raised $134 million to combat climate change.

In July 2018, Mercom reported that The Asian Development Bank (ADB) has raised €600 million (~$702.80 million) to support climate change mitigation and adaptation projects with the issue of a 7-year green bond.

In September 2019, State Bank India (SBI), India’s largest lender, raised the first tranche of $650 million through a maiden green bond offering, which is a part of its goal of raising $3 billion to fund renewable energy projects.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer