Green Climate Fund Approves $687M For Global Projects

The Green Climate Fund (GCF) has just celebrated a milestone with the approval of $686.8 million for 11 new projects in 42 countries, a big step towards global climate action. The investments will directly impact 115.5 million people and reduce the equivalent of 45.3 million metric tonnes of CO₂, part of a larger climate finance program that totals $1.5 billion when co-financing is included. The initiatives will cover an extensive range of climate adaptation and mitigation measures targeting some of the most exposed countries and sectors across the globe.

This renewed investment round is also a massive geographical expansion by GCF as the Fund will extend its reach to Serbia and Togo for the first time. In Serbia, the emphasis will be placed on enhancing forest resilience, which is an increasingly pressing issue as climate change poses a threat to the ecosystems of the region. In Togo, the GCF will assist in building climate resilience among vulnerable groups, making sure the country's most vulnerable populations are better positioned to cope with climate change's negative impacts. These new initiatives show the Fund's determination to diversify its international activities and make sure that even less developed or smaller countries are not left behind in the battle against climate change.

Seyni Nafo, Co-chair of the GCF, highlighted the importance of this moment, adding that these investments will provide desperately needed climate finance to the most vulnerable developing countries. It is especially satisfying to observe that we are expanding our reach by introducing first-time projects in Togo and Serbia," Nafo added. This widening of GCF's reach is a clear reflection that the Fund is more and more concerned with adapting its climate solutions to the individual needs of various countries and regions, understanding that action on climate is most effective when it is context-specific and local.

Besides the geographical growth, the GCF is also strategically positioning itself to make its impact deeper through a new regional presence. As part of further evolution, the GCF will establish regional offices that will improve access to funds and increase the effectiveness of its projects in developing nations. Mafalda Duarte, the Executive Director of the GCF, acknowledged the significance of this step, noting, "If climate action is local action—which it is—then the Green Climate Fund needs to be local too." By decentralizing and fostering more direct relationships with local governments and organizations, the GCF seeks to simplify its operations and provide more timely and efficient assistance for climate-vulnerable areas.

The GCF portfolio currently comprises 297 projects, totaling $16.6 billion in GCF investment, which, when added to co-financing, totals a staggering $62.7 billion. A significant percentage of these investments (38%) is made in Africa, followed by Latin America and the Caribbean (32%), and Asia Pacific (27%). This is a demonstration of the Fund's continued focus on giving preference to Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African countries, which are still disproportionately vulnerable to the impacts of climate change. Of particular note, 63% of the GCF adaptation finance goes to these high-risk areas, reflecting the Fund's emphasis on increasing resilience in the most vulnerable groups.

Partnerships with the private sector have also been growing, with the GCF continuing to support partnerships that mobilize additional investments. In Senegal, the GCF partnered with La Banque Agricole to advance climate-smart agriculture through a Green Climate Finance Facility. The project seeks to enhance farming practices, making them more resilient to the effects of climate change while supporting the local economies to increase their economic growth. Another important private-sector collaboration is with Mirova, an organization committed to sustainable land use. They are collaborating on a project that will address deforestation in agricultural areas by using a sustainable land fund to support the restoration of critical ecosystems and ensuring the long-term sustainability of agricultural communities.

Leif Holmberg, Board Co-chair, emphasized the significance of these collaborations, especially at this time of global climate crisis. He said, "In these difficult times, GCF is demonstrating how nations are reaffirming their individual and collective commitment to stepping up support to climate-vulnerable communities." The partnership with the private sector is key in mobilizing more resources for climate action, enabling the GCF to scale up its programs and ensure that the momentum continues in spite of the global economic uncertainty.".

Ahead of it, the Board of the GCF will convene in Port Moresby, Papua New Guinea, between June 30 and July 3, 2025. The gathering will most likely sustain the energy from these fresh investments and examine further plans on deepening the outreach and effectiveness of the Fund, especially with the backdrop of continuous global climate concerns.

In total, the Green Climate Fund's recent investments reflect a continued focus on combating the international climate crisis through collaborative, region-based, and extremely effective projects. By broadening its geographic scope, enhancing private sector engagement, and deepening regional operations, the GCF is becoming a key actor in the global fight against climate change, making sure that developing nations have the support and resources they require to adapt and prosper in the midst of a changing climate.