The Green Climate Fund (GCF), will release $1.2 billion for 17 climate projects, mainly in Asia and Africa, in its biggest funding round to date.
The decision was approved by shareholders, including the United States, during a recent board meeting.
The funding comes as global development aid faces pressure, with the OECD reporting a 9 percent drop in 2024 and projecting a 17 percent decline in 2025. These cuts are largely driven by reduced U.S. aid under President Donald Trump.
The GCF said the projects aim to help lower-income countries respond to climate change. The fund will invest $227 million to develop green bond markets in 10 countries. It will also provide $200 million to the India Green Finance Facility to support renewable energy and energy efficiency.
In East Africa, $150 million will go to improve food systems and reach around 18 million people.
With this new round, the GCF’s portfolio will reach $18 billion in 133 countries. Donor countries have pledged $29.9 billion to the GCF and paid in $21 billion so far.
In addition to the new investments, the GCF board approved measures to speed up its work with partner organisations, such as other multilateral institutions and Direct Access Entities (DAEs) in developing nations.
To shorten the accreditation process for DAEs from 30 months to nine months or less, the fund plans to overhaul its procedures. Much of the due diligence will now take place at the project level.
Co-Chair Seyni Nafo said the GCF is stepping up to meet its responsibility at a time when joint action on climate is needed.
