The leadership of the Green Climate Fund engaged in a series of high-level consultations on climate finance at COP 22 today. Ewen McDonald, GCF Board Co-Chair, addressed a Ministerial dialogue on climate finance, speaking also on behalf of his fellow Co-Chair Zaheer Fakir.
Contributing to the session on scaling-up climate finance, McDonald set out GCF’s achievements over the past year in approving more than USD 1 billion in funding proposals, involving a total of 37 countries. He emphasised the role of GCF resources in mobilizing private sector climate finance, with the current private sector portfolio expected to unlock USD 9.4 billion in on-ground investment, thereby leveraging GCF resources at a rate of 1:15 on average.
Amongst other measures, McDonald highlighted the decision of the Board earlier in 2016 that allows GCF to take first loss. This key tool enables the Fund to assume risks others cannot take, and to ‘crowd-in’ private finance.
Earlier in the day GCF Executive Director ad interim Javier Manzanares spoke to the Global Finance Action Summit at COP 22. He outlined the Fund’s role in serving the Paris Agreement in relation to the formulation and implementation of National Determined Contributions (NDCs). He encouraged countries to work with the 41 accredited entities to the Fund, and to consider how to turn their NDCs into concept notes and project proposals for GCF.
Manzanares further outlined the role of the GCF Readiness and Preparatory Support Programme in aiding countries to access GCF resources, and ensuring consistency with national priorities. A total of 57 countries have grants approved for receipt of readiness funds, of which 37 are Small Island Developing States (SIDS), Least Developed Countries (LDCs) and African states.