Climate fund starts the green future with 1.2 billion US dollars!

Climate fund starts the green future with 1.2 billion US dollars!

The Green Climate Fund (GCF) is planning a major investment round to support developing countries in the fight against global warming. Loud Market screener An amount of around 1.2 billion US dollars is to be made available for 17 projects. These initiatives are predominantly focused on Asian and African countries.

Approval from shareholders, which includes the United States, was reached at a meeting this week. Still, the OECD report warned that official development assistance could fall by 17 percent next year, driven by political tensions and previous cuts, particularly under President Donald Trump. GCF co-chair Seyni Nafo highlighted the urgency of collective action to combat climate change.

Use of funds

The planned use of funds is diverse. 227 million US dollars will be used to expand the green bond markets in ten countries. In addition, $200 million will flow into the India Green Finance Facility to promote the use of renewable energy and energy efficiency. An additional $150 million is earmarked to provide food system support to nearly 18 million people in East Africa. The GCF's investment portfolio now totals $18 billion across 133 countries.

In total, the GCF has recorded commitments of $29.9 billion, of which $21 billion has already been deposited. The GCF Board also approved plans to improve efficiency in project development. A particularly ambitious project is to shorten the accreditation time for Direct Access Entities (DAE) from an average of 30 months to nine months or less.

International willingness to support

The GCF received support from 31 countries, with 20 of these countries increasing their financial commitments compared to the previous replenishment round. These include Austria, Germany, Canada and France, among others. Five countries, including Australia and the United States, have returned as contributors. Interestingly, three non-Annex 1 parties, namely South Korea, Mongolia and Israel, have also pledged their support.

These developments demonstrate the high level of ambition and confidence countries have in the GCF to implement transformative climate action. GCF would like to expressly thank all contributors for their continued support, which represents a significant step in the global fight against climate change Green Climate Fund determines.