The Green Climate Fund has increased its ability to tap private sector profits to finance climate action by strengthening its ties with Spanish-based international investor COFIDES.

Compañía Española de Financiación del Desarrollo (COFIDES) is a joint state and privately-owned company accredited by GCF in October last year to finance climate initiatives based on its experience of private sector investments across nearly 90 countries.

The two organisations signed an agreement on Wednesday which lays the legal groundwork for GCF to injects its own catalytic input of public funds into COFIDES’ investments in climate action initiatives around the world.

COFIDES Chairman José Luis Curbelo said during the signing in Seoul that “thanks to this support from the Green Climate Fund, COFIDES has bolstered its capacity to support private-sector climate change mitigation and adaptation projects.” “In the coming years, we hope to increase our portfolio of climate projects in sectors such as infrastructure, energy efficiency, water and sanitation, renewable energy and agro-industry and among others,” he added.

GCF Deputy Executive Director Javier Manzanares said GCF’s strengthened ties with COFIDES reflects GCF’s ongoing efforts to complement its support for public and private sector funding in developing countries with business-led investments. “GCF hopes to capitalise on the financial expertise of COFIDES to help us redirect the world’s private sector assets, estimated at around USD 210 trillion, to fund low-emission and climate-resilient initiatives,” he said.

Also present at the signing of the Accreditation Master Agreement (AMA) were Spain’s acting Minister of Industry, Trade and Tourism, Reyes Maroto, and acting Secretary of State for Trade, Xiana Méndez.

Currently, among GCF’s USD 5.2 billion portfolio of climate investments, USD 1.2 billion is directed towards Latin American and Caribbean countries.