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Directing finance to where it is needed most
Delivering inclusive growth while limiting climate change to 1.5°C will require the mobilization of finance at a historic scale. Over the next 15 years, it is estimated the world needs about USD 90 trillion in climate smart infrastructure – most of it in developing countries. Investing in green, climate resilient development will help mitigate the impacts of climate change and enable vulnerable societies to adapt to its negative effects. Climate finance plays a vital role in accelerating the implementation of Nationally Determined Contributions (NDCs) and advancing the Sustainable Development Goals (SDGs).
Mobilizing climate finance to where it will deliver the greatest impact is beset by various challenges, including institutional capacity. The Global Green Growth Institute (GGGI), mandated to help develop a low-carbon, resilient world of strong, inclusive and sustainable growth, works with its Member and partner countries to mobilize finance in support of climate action plans and programmes aiming to achieve climate targets.
GGGI has already helped mobilize over USD 1 billion in green investments and climate finance in developing countries. GGGI has done so by supporting countries to tap into finance from diverse sources, including bilateral aid, multilateral development banks, and the private sector.
One critical source of climate finance is the Green Climate Fund (GCF), which empowers developing countries to achieve their NDCs by financing mitigation and adaptation initiatives that align with countries’ needs and priorities. To enhance country ownership and access to its resources, GCF has a Readiness and Preparatory Support Programme. This “Readiness Programme” provides grants or technical assistance to strengthen institutional capacities, governance mechanisms, planning and programming to help countries identify a transformational, long-term climate action agenda. All developing country Parties to United Nations Framework Convention on Climate Change (UNFCCC) can access GCF’s Readiness Programme.
GGGI partners closely with GCF to support developing countries to access climate finance. With a common goal and complementary delivery model, GGGI and GCF signed a Framework Readiness and Preparatory Support Grant Agreement in 2017. Under this strategic partnership, GGGI supports its Member and partner countries to enhance access to GCF financing by implementing the GCF Readiness Programme. To ensure that GGGI remains a neutral advisor to governments, GGGI carries out this work as a Readiness Delivery Partner and is not an accredited entity to GCF.
GGGI supports national designated authorities (NDAs) and existing and potential national direct access entities (DAEs to develop projects for submission to GCF and to access Readiness Programme resources. GGGI also works with partner governments to develop concept notes and funding proposals for submission to GCF.
Over 20 countries have requested GGGI to act as a Readiness Delivery Partner. The GGGI teams on the ground have supported 20 of its government partners to access over USD 15 million in GCF approved Readiness funding and submitted over USD 9 million Readiness proposals.
Click here to see the GCF Approved Readiness Funding.
Support for Funding Proposals
For countries to access climate finance from the Green Climate Fund (GCF), the Global Green Growth Institute (GGGI) develops funding proposals, two of which have already been approved (for Ethiopia and Rwanda), three in the GCF pipeline (for Mongolia, India and Senegal), and one being developed (for Indonesia). GGGI has also developed 10 concept notes submitted for Fiji, Lao PDR, Rwanda and Vanuatu, six through SAP. In most of these projects, GGGI works with national direct access entities. The total value of these projects is estimated at USD 685 million, of which GCF contribution is over USD 300 million.
Project Reference Profiles – Rwanda(RW5) Readiness Support to implement Green City Development Projects in Rwanda’s Secondary Cities
|Start Date||Q1 April 1 2018|
|Actual Budget (USD)||369,929|
Readiness Support to Strengthen PNG’s Engagement with the GCF
|Start Date||Q4 2017|
|Actual Budget (USD)||677,427|
News • March 27, 2020
Directing finance to where it is needed most Delivering inclusive growth while limiting climate change to 1.5°C will require the mobilization of finance at a historic scale. Over the next 15 years, it is estimated the world needs about USD 90 trillion in climate smart infrastructure – most of it in developing countries. Investing in […]