GCF and partners sign project agreements for four transformative climate projects
Four key agreements for climate projects (Funding Activity Agreement; FAA) were signed by the Green Climate Fund (GCF) and its partners on the margins of GCF’s 34th Board meeting (17-20 October 2022). They include climate resilience projects in the Maldives, Barbados, and Guinea-Bissau and GCF’s first at-scale private sector programme in the water sector.
FP192 The R's (Reduce, Reuse and Recycle) for Climate Resilience Wastewater Systems in Barbados (3R-CReWS)
Barbados is experiencing “absolute water scarcity.” The climate crisis and limited water availability are impacting food security. To counter this, Barbados is seeking to increase food production as an adaptation measure. In partnership with the Caribbean Community Climate Change Center (CCCCC), this USD 50 million project with USD 39.4 million in GCF financing aims to make more water accessible and sustainable through investment in the circular economy. Carbon-neutral and climate-resilient water and energy management technologies will ensure that water is protected, managed, recycled, reused, and conserved.
Colin Young, Executive Director of CCCCC said “This FAA is being signed only one day after the board has approved the project. This is quite remarkable. It demonstrates the GCF’s commitment to accelerate the commencement of approved projects that will build climate resilience in vulnerable countries like Barbados. Behind the scenes, it also reflects the hard work between the CCCCC team and the GCF team who were negotiating the terms of the FAA long before the project was approved.”
Hon. Ryan Straughn, Minister of Finance and Economic Affairs of Barbados added “It is important to work with partners to be able to unlock finance that allows the government to execute its program without putting pressure on the existing budget. Certainly, after the COVID-19 pandemic, the fact that we can get this project financed without impacting the overall government fiscal situation is particularly important. For climate vulnerable countries, efforts like these go a long way.”
This project was formally approved at the 34th Board meeting, just one day prior to the signing.
FP190 Climate Investor Two
In partnership with the Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), this USD 880 million project with USD 145 million in GCF financing aims to support the private sector to develop and construct climate-resilient infrastructure projects in developing countries in the water, sanitation, and ocean sectors which usually do not attract interest from the private sector. The targeted investments will help countries undergoing water stress adapt to climate change by building infrastructure that sources, transports, and treats water for municipal and industrial users. This is GCF’s first at-scale private sector programme in the water sector. It was approved at the 33rd Board meeting.
At the signing of the agreement, Soji Omisore, Deputy Director of the Private Sector Facility (PSF) at GCF said "The water cycle is one of the most important and often overlooked parts of the global climate crisis, so it’s essential that we unlock private finance at scale to ensure a resilient water supply for developing countries. This project is an important step towards achieving this goal."
David Kuijper, Manager of Blended Finance at FMO added “This GCF investment in Climate Investor Two is an important contribution to the global effort to increase climate adaptation finance. FMO welcomes the GCF as a key partner to an impressive group of public and private investors. We look forward to a robust and efficient partnership with the GCF to help Climate Investor Two fulfil its promise to accelerate water, sanitation, and ocean-related investments worldwide.”
SAP025 Adaptation of agricultural production systems in Coastal Areas of Northwest Guinea-Bissau
In partnership with the Sahara and Sahel Observatory (OSS), this USD 10 million project with over USD 9.8 million in GCF financing aims to enhance the climate resilience of livelihoods and food security of the most vulnerable people in Northwest and Northcentral coastal regions of Guinea-Bissau (Cacheu and Oio). It will do so by first improving local observation and monitoring systems for water and soil quality, rehabilitating small-scale water management schemes such as rainwater retention systems and irrigations, undertaking functional reforestation of mangroves on 250 hectares of mangrove swamp areas, and strengthening agricultural value chains with microenterprises.
Speaking at the signing of the agreement, GCF Executive Director Yannick Glemarec said “It’s our first project with OSS and in Guinea-Bissau. One of the project’s most remarkable features is gender equality; it is one of the core dimensions of this project. I greatly appreciate this focus and I believe the project will be a success.”
Nabil Ben Khatra, Executive Secretary of the OSS added “Much appreciation is accorded to the teams that spanned endless days and nights to conceptualise this project that will not only benefit the country, but also the beneficiaries who are now accessing climate finance to improve their livelihoods and well-being. We couldn’t have done it without a concerted effort.”
This project was formally approved under GCF’s Simplified Approval Process (SAP) at the 34th Board meeting, just one day prior to the signing.
FP165 Building Climate Resilient Safer Islands in the Maldives
The low elevation of the 188 small and inhabited islands of the Republic of Maldives makes them highly vulnerable to severe weather events while retreating inland or to higher ground is impossible. Accelerated sea level rise due to climate change will have devastating effects on the islands and could threaten their very existence.
In partnership with the Japan International Cooperation Agency (JICA), this USD 66 million project with USD 25.1 million in GCF financing will address these challenges by enhancing coastal management, including the protective functions of natural sandy beaches and coral reefs. It will do this through integrated coastal zone management, early warning and early action, and knowledge sharing. The project is the first adaptive beach protection solution to be implemented on public land in the Maldives islands. It was approved at the 29th Board meeting.
Takumi Ueshmia, Senior Vice President of JICA said “I strongly believe that the project in the Maldives funded by GCF is a very significant one and aims to facilitate a paradigm shift with the concept of integrated coastal zone management.”
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