Enhancing support for developing countries and realising the USD 100bn goal

Distinguished Guests, Ladies and Gentlemen,

I thank the UK COP Presidency for the invitation to contribute to this important high-level event.

Today we have a double climate finance challenge. First, we must realise the goal to mobilise USD 100 billion per year in climate finance. Second, we have to use these funds in a catalytic manner to shift the much larger flows - USD 1 to 4 trillion annually are needed - towards climate investment in developing countries.

We have learnt that a one size-fits-all solution does not exist. Each country will have to come with a portfolio of different policy instruments. More than 5,500 policy instruments are currently in use and provide us with a huge library of options.

In support of these imperatives, GCF is delivering on its mandate to help developing countries respond to climate change challenges.

Since the first project was approved in 2015, our project portfolio has grown to USD 10 billion. With co-financing, the total is USD 37 billion.

Our portfolio comprises 190 projects in 127 developing countries, making GCF the largest fund of its kind.

In 2021, GCF approved an annual record of nearly USD 3 billion in climate finance projects. Over the past two years, we doubled our portfolio size and tripled the number of implemented projects to help developing countries make a climate-resilient recovery from COVID-19.

Scaling up and enhancing the effectiveness of climate finance requires multiple components.

Therefore, GCF takes a four-pronged approach to climate financing.

The first prong promotes an enabling environment for climate action. This involves removing barriers to novel climate solutions and maximising co-benefits between mitigation, adaptation and sustainable development by promoting integrated strategies, planning and policymaking.

The second prong accelerates climate innovation through the investment in new and innovative technologies, business models, financial instruments and practices.

The third prong mobilise finances at-scale. GCF leverage scarces public resources to de-risk and crowd-in private finance for climate solutions at-scale, particularly for adaptation, nature-based solutions, Least Developed Countries and Small Island Developing States.

Finally, the fourth prong aligns finance with sustainable development. GCF develops the capacity of domestic financial institutions to mainstream climate risks and opportunities in investment decision-making.

In addition, effective cooperation is essential to maximise benefits for developing countries.

GCF works with other climate funds to enhance complementarity and coherence among our activities.

One example is the Long-Term Vision on Complementarity, Coherence, and Collaboration between GCF and the Global Environment Facility. This new initiative will enhance synergies between our investments and foster stronger coordination in programming, knowledge exchange, and communication.

Amidst the global climate emergency, we must continue to respond to the needs of developing countries. GCF remains committed to supporting developing countries in meeting their climate ambitions to serve the goals of the Paris Agreement and UNFCCC.

Thank you.