Green Climate Fund Bolsters Global Climate Action with $686.8 Million Investment

In a significant step taken towards  addressing the global climate crisis, the Green Climate Fund (GCF) Board, at it’s latest meeting on 20th February, approved $686.8 million in funding augmented by $1.5 billion in co-financing for 11 transformative projects spanning 42 countries.

This investment is poised to directly benefit 115.5 million people while mitigating 45.3 million metric tonnes of CO₂ equivalent, reinforcing the Fund’s pivotal role in supporting climate most vulnerable communities globally. The meeting, held under the leadership of newly elected 2025 Co-chairs Seyni Nafo of Mali and Leif Holmberg of Sweden, also marked a strategic decision to establish regional offices, enhancing the GCF’s proximity and responsiveness to developing nations.

Among the approved initiatives are pioneering single country projects, including efforts to bolster forest resilience in Serbia and enhance community climate resilience in Togo, both firsts for the respective nations. The portfolio also acknowledged a very strong commitment to localized climate action, with six projects slated for immediate implementation following swift agreement signings. “These 11 new projects deliver urgently needed climate finance to developing countries,” said Co-chair Seyni Nafo. “Expanding our reach to Togo and Serbia, while approving five new direct access entities, underscores GCF’s dedication to country ownership and impactful local solutions.”

Co-chair Leif Holmberg emphasized the Fund’s resolve amid global challenges: “GCF demonstrates how nations can unite to accelerate support for climate most vulnerable populations. By prioritizing access to finance and deepening private sector partnerships, we’re amplifying resources essential for effective climate action.”

The approved projects elevate the GCF’s total portfolio to 297 initiatives, with $16.6 billion in direct funding and $62.7 billion including co-financing, predominantly via grants (74%), alongside loans (16%) and equity (10%). Investments are distributed across Africa (38%), Latin America and the Caribbean (32%), Asia Pacific (27%), and Eastern Europe, Central Asia, and the Middle East (3%), with 63% of adaptation funding allocated to Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African nations.

Executive Director Mafalda Duarte appreciate the regional expansion as a milestone by saying “Climate action is inherently local, and so must we be not just as funders, but as partners on the ground. Establishing a regional presence brings our expertise closer to those who need it most, strengthening our delivery of over $680 million in new commitments and pushing our portfolio toward $17 billion across 133 countries.”

The meeting highlighted innovative private sector collaborations, including a Green Climate Finance Facility in Senegal with La Banque Agricole to promote climate-smart agriculture and a sustainable land fund with Mirova to combat deforestation across multiple nations. Both projects leverage the GCF’s Project-Specific Assessment Approach (PSAA), a pilot streamlining funding access by aligning entity accreditation with project evaluation.

A second PSAA-approved initiative, the RE-GAIN project with AGRA, aims to scale solutions for food loss in Africa. Additionally, a major multi-country project under the United Nations’ Early Warning For All initiative will enhance protection for at-risk populations.

The Board also accredited six new implementing partners, including five national and regional entities, bolstering direct access in developing countries. Burkina Faso secured its first direct access entity, while Armenia welcomed its first private sector partner. Five of the approved projects benefited from the GCF’s Project Preparation Facility, underscoring its role in project development.

With this latest action, the GCF reaffirms its mandate to serve underserved, climate-vulnerable communities. The 42nd GCF Board meeting is scheduled for June 30 to July 3, 2025, in Port Moresby, Papua New Guinea, promising continued momentum in global climate finance.

These projects will contribute to the Fund's mandate of fostering a paradigm shift towards low-emission, climate-resilient development pathways.

The approved projects will support countries in Africa, Asia, Latin America, and the Pacific, focusing on climate change adaptation and mitigation efforts. The projects address various sectors, including agriculture, forestry, water security, and disaster risk reduction.

Some of the approved projects include:

1. Strengthening the resilience of vulnerable communities in Togo.
2. Sustainable communities for climate action in Mexico.
3. Transforming livelihoods through climate resilient agriculture in Kenya.
4. Scaling solutions for food loss in Africa.
5. Enhancing the resilience of Serbian forests.

The GCF has also accredited six new organizations, including ArmSwissBank, Development Bank of Rwanda, Fonds d’Intervention pour l’Environnement, Trade and Development Bank Group, ECOWAS Bank of Investment and Development, and ACTED.

These new projects and accreditations demonstrate the GCF's commitment to supporting developing countries in their efforts to address climate change and promote sustainable development.