The Green Climate Fund has transferred the first tranche of funding for an adaptation project in the Federated States of Micronesia just 36 days after Board approval, making this the fastest GCF project to be implemented so far. The Funding Proposal was submitted to GCF on 25 March 2021, so the project has moved from proposal to action on the ground in under eight months.
Climate change adaptation solutions for Local Authorities in the Federated States of Micronesia was approved by the GCF Board on 7 October, with the project agreement signed the next day, in the presence of President David Panuelo. The first transfer of funds for the project has now been made to local project partner The Pacific Community (SPC) 36 days after Board approval, marking a record for GCF as it moves to speed up its delivery of climate finance.
'The threats are immediate and already happening - you can see inundation of saltwater into our atolls, threatening food security,' stated FSM President David Panuelo.
'We deeply appreciate the effective, efficient running of GCF as a partner. Our partners are ready and enthusiastic to begin work on the ground and we cannot thank GCF enough.'
Yannick Glemarec, GCF Executive Director, stated, ‘Providing support for Small Island Developing States to adapt to climate change is a key priority for GCF. I am delighted that we have been able to move so rapidly from proposal to action on the ground with this first transfer of funds to the project. Congratulations to SPC and to President David Panuelo.’
The project supports adaptation project within FSM, a Pacific Small Island Developing State which is highly vulnerable to the impacts of climate change. This ambitious project aims to reduce climate vulnerability, lower health risks and increase socioeconomic development for vulnerable communities by improving food and water security, enhancing disaster risk reduction and recovery, and building local adaptive capacity to respond to climate change. This will be achieved by building the capacity of local authorities to deliver climate change adaptation services by enhancing their technical expertise.
The project was submitted as an Enhancing Direct Access (EDA) pilot project, under a programme designed to enhance country ownership of projects. It is the first ever project delivered by SPC, which is one of GCF's Direct Access Entities - organisations who are working close to the ground in developing countries.
This is one of two projects for FSM approved this year - and the second one, Climate resilient food security for farming households across the Federated States of Micronesia (FSM), is also already being implemented on the ground, having been approved by the Board in March, with the first funding transferred on 1 October.
GCF is working hard to increase its support for Small Island Developing States such as Micronesia. It has approved projects valued at USD 1.2 billion for SIDS, recognising that these islands are amongst the hardest hit by climate change, even though their contribution to global emissions is tiny.
GCF has increased the speed of delivery of climate finance, streamlining processes and ensuring that funds reach the ground more rapidly. The average time taken from review of funding proposals to first disbursement of funds has fallen from 26-28 months in 2018 to an average of 12-17 months for projects approved in 2021.