By Faridat Salifu
The Green Climate Fund (GCF) has approved over $1 billion in new climate investments, expanding its global project portfolio to $16 billion in direct funding and $61.5 billion with co-financing across 286 initiatives.
The approvals, finalized during the GCF’s 40th Board meeting recently, marks a significant progress ahead of COP29 and extends GCF-backed climate projects into four new countries: Angola, Azerbaijan, Iraq, and Somalia.
In its 2024 commitment, GCF has allocated $2.5 billion to 44 projects, pushing the total reach of its programs to 133 countries. Focusing on underserved and climate-vulnerable nations, the GCF has prioritized grants for projects in countries with limited fiscal capacity, with over 40% of the Fund’s portfolio now grant-based.
The newly approved projects include groundbreaking initiatives such as the debt-for-climate conversion program in Barbados, a first for GCF. Designed to free up fiscal space, this project enables Barbados to reinvest in climate-resilient infrastructure while generating long-term savings. Partners in this effort include the Inter-American Development Bank and the European Investment Bank, both of which have provided guarantees.
Another notable project is GCF’s investment in Pakistan’s Climaventures Fund, where it will collaborate with the National Rural Support Programme (NRSP) to empower climate-focused start-ups. By committing as an anchor investor with first-loss equity, GCF supports local solutions and drives private sector engagement in climate action.
The Board also approved the first project under its new Project-Specific Assessment Approach (PSAA), simplifying the application process for entities like Burundi’s One Acre Fund, which will bolster food security for local farmers facing climate instability. Reflecting GCF’s commitment to rapid implementation, two projects, in Burundi and Somalia, moved from approval to disbursement within a day.
Policy advancements at the meeting included integrating REDD+ results-based payments into GCF’s project cycle and updating the Fund’s risk appetite framework to facilitate investment in new markets and innovative technologies. These steps align with GCF’s focus on accelerating climate finance for the most vulnerable nations and expanding its network of partners to deliver support quickly.
Reflecting on the meeting’s achievements, Board Co-chair Milagros De Camps German highlighted the diversity of the new projects and the importance of streamlining processes to make financing more accessible. Co-chair Sarah Metcalf emphasized GCF’s commitment to mobilizing private investment and supporting high-impact initiatives for climate-vulnerable regions.
GCF Executive Director Mafalda Duarte echoed these sentiments, noting that GCF’s 2024 investments represent a landmark commitment during an era of escalating climate challenges. “This week, the Board has approved $1 billion for 16 projects, broadening our reach to new countries and pioneering innovations such as the debt-for-climate conversion in Barbados,” Duarte said. “Our work in 2025 will continue building on this momentum, channeling critical resources to those who need them most.”
Held in its new boardroom in Songdo, Incheon, the GCF’s 40th Board Meeting brought together around 300 participants, including representatives from the private sector, civil society, and National Designated Authorities. The session also marked the close of service for 2024 Co-chairs De Camps German and Metcalf, with Seyni Nafo and Leif Holmberg announced as the Board’s Co-chairs for 2025.