The Green Climate Fund (GCF) and its partners have signed implementation agreements for two new climate finance projects only hours after they were approved by the GCF Board.

The signing of the Funded Activity Agreements (FAAs) in the margins of last week’s B.28 Board meeting lays the detailed groundwork to roll out a multi-country, USD 1.6 billion finance facility to boost renewable energy as well as GCF’s first project in the Federated States of Micronesia (FSM).

Commenting on the Micronesia project, FSM President David Panuelo noted how the project will meet urgent climate needs by bolstering farmers’ food security in his vulnerable Pacific island state. It is the “first system-wide project of its kind in the FSM,” he added during a virtual signing of the two implementation agreements

“It is country-owned and will remain country-driven, as national organisations will be the implementing and executing entities. This project will be targeting the most vulnerable to climate change to support their ability to withstand the multiple threats of climate change impacts.”

This adaptation initiative is being implemented by the Micronesia Conservation Trust, one of GCF’s “direct access” partners which are homegrown organisations based in developing countries.

The other agreement, signed with the World Bank, provides an innovative mix of large-scale financing that uses renewable energy to boost universal electricity access in several countries across Africa and the Asia Pacific.

Acting World Bank Vice President for Infrastructure Pablo Fajnzylber said the Sustainable Renewables Risk Mitigation Initiative (SRMI) is a key component of the World Bank’s energy strategy.

“With our partners, the International Solar Alliance (ISA), the French Development Agency (AFD), and IRENA, we developed an innovative framework to help governments realise their NDC targets,” he said. “Thanks to the GCF financing, we will unlock 2.5 GW of solar and wind projects in seven client countries, aiming to leverage over USD 3.3 billion in private investments and provide access to green and reliable electricity for the poorest households.”

GCF Executive Director Yannick Glemarec said the ability to sign the two implementation agreements only hours after they were approved by the GCF Board is testament to both the Fund’s ability to accelerate its approval processes and the ambition of its partners.

He noted the implementation of the Micronesia project matches a number of key GCF goals, including support for climate adaptation and the empowerment of the Fund’s direct access partners - especially those most vulnerable to climate change such as Small Island Developing States (SIDS).

“One of our main objectives is to ensure that every single developing country can access our resources, and especially the most vulnerable ones - those that should be prioritised first,” he said. “And so it's really great to have this first project with Micronesia.”

Glemarec added GCF’s collaboration with the World Bank in resourcing the SRMI Facility, which is projected to provide electricity access to 4 million people, provides an example of the large scale needed to address climate change globally.

“This could establish a track record to scale up similar initiatives in other countries,” he said. “Here we have the level of ambitions we need in order to address climate change at scale.”

These two projects were among 15 new climate action initiatives, totalling USD 1.2 billion, approved at the recently concluded 28th GCF Board meeting.  The new projects raise GCF’s total portfolio to USD 8.4 billion, amounting to USD 30.3 billion when including funding from all sources.