World’s biggest climate fund ramps up investment plans

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The Green Climate Fund board also approved plans to speed up its work with partner organisations.

PHOTO: REUTERS

LONDON - The world’s biggest multilateral climate fund said it will make its largest ever series of investments and speed up dealmaking as it looks to help poorer nations respond to global warming.

The Green Climate Fund’s (GCF) plan to release about US$1.2 billion (S$1.53 billion) for 17 projects mostly in Asia and Africa follows approval by shareholders including the United States at a meeting this week, against a fractious political backdrop that has seen development aid slashed.

Official development assistance could fall 17 per cent in 2025, after a 9 per cent drop in 2024, the OECD said in a June report, led by

hefty cuts to US aid by President Donald Trump

“At a time when collective climate action is more needed than ever, GCF is stepping up to deliver on its mandate,” GCF co-Cchair Seyni Nafo said in a statement.

The GCF disbursement includes US$227 million for an initiative to expand green bond markets in 10 countries. Green bond markets are where companies raise capital for projects that limit climate change or otherwise benefit the environment.

In South Asia, it will invest US$200 million in the India Green Finance Facility to scale renewables and energy efficiency, while in East Africa it will invest US$150 million in the food system to support nearly 18 million people.

All the projects will bring the GCF investment portfolio to US$18 billion across 133 countries.