Thank you for inviting me to this key event as we approach the COP26 meeting in Glasgow. While global momentum is building, we are still not on track to achieve the Paris Agreement goals. One of the key missing pieces is adequate climate finance.
The latest OECD figures shows that climate finance for developing countries reached USD 79.6 billion in 2019. While redoubling efforts to reach the USD 100 billion annual target, we also need to use those funds to catalyse the trillions needed annually for low-emission, climate-resilient development.
GCF has currently USD 37.2 billion of assets under management- including $ 10 billion of GCF funding and co-financing. With its over 200 accredited and delivery partner agencies, GCF help developing countries overcome barriers to climate innovation and investment, to shift much larger flows of finance to address climate action at scale.
To do this, we use a four-pronged approach.
First, we help countries establish a conducive policy environment for climate investment. This includes using grants to strengthen the capacity of countries to design, finance and implement integrated climate strategies and policies, including green, climate resilient economic stimulus measures to recover from the Covid-19 pandemic.
Second, we catalyse climate innovation. For example, we have invested USD 25 million in the KawiSafi Ventures Fund, which provides growth-stage finance to start-ups investing in off-grid renewable energy technologies in East Africa.
Third, we de-risk transformative projects to crowd-in private finance. GCF has invested USD 150 million of first-loss equity to de-risk a first-of-its kind USD 750 million private equity fund to finance adaption and mitigation investment at the sub-national level. Almost half of the 42 participating countries are LDCs and SIDS.
And fourth, we help align finance with sustainable development by empowering domestic financial institutions in developing countries to originate and development climate investment as well as access capital markets to finance them and drive climate action.
Through scaling up climate action, we are also helping to achieve the Sustainable Development Goals. For people, planet, and prosperity.