The Green Fund for Climate approves financing for CAF's project in Chile

The Green Climate Fund (GCF) approved the first nine projects that will be financed in 2016 for a total of USD 256.6 million, of which USD 49 million will be managed by CAF, Development Bank of Latin America, in the framework of the Climate Action and Development of Solar Energy in the region of Tarapaca, Chile. 

The decision was announced by the Executive Board of the GFC during its thirteenth meeting, held in Seoul between June 28th and 30th of this year. Ligia Castro, CAF's Director of the Environment and Climate Change, highlighted that the Program for t he Development of Solar Energy in Chile, presented by CAF, is the first structured financing project approved by the Green Fund in its history. She added, "this is the only private sector proposal approved during the meeting, showing CAF's successful access to one of the most innovative elements of the GCF, its Private Sector Facility". 

Following are the approved proposals, with their respective amounts and entities that will channel the resources: 

•              USD 49 million for the Climate Action and Solar Development Program in the region of Tarapaca, Chile (CAF- Development Bank of Latin America)

•              USD 38.1 million to strengthen resiliency toward the extreme variability of climate in small producing sectors of Sri Lanka (UNDP)

•              USD 36 million for the Coastal Adaptation Program in the Tuvalu islands (UNDP)

•              USD 29.5 million to improve the resiliency of vulnerable coastal areas to impacts related to climate change in Vietnam (UNDP)

 •             USD 22.8 million for the Hydromet Africa Program and strengthening of resiliency to climate in Sub-Saharan Africa (World Bank - WB)

•              USD 21.7 million for the Energy Savings Insurance (ESI) for private investments in energy efficiency for small and medium-sized companies in El Salvador (IDB, Inter-American Development Bank) 

•              USD 20.5 million for adaptation and management of ecosystems in Gambia (UNEP - United Nations Environmental Programme)

•              USD 20 million for the modernization and increase of energy efficiency in buildings in Armenia (UNDP - United Nations Development Programme) 

•              USD 19 million for mitigation and adaptation to climate change actions in the basin of the Aral Sea in Tajikistan and Uzbekistan (WB) 

Ewen McDonald (Australia), Vice-President of the Executive Board, stated "These approvals mark a point at the middle of the road for the GCF in 2016". He also stated his satisfaction for the achievements in this first part of the year, adding, "Significant deficiencies were corrected with respect to policies, we have a strategic plan, we have 13 accredited entities to manage the funds, and we just approved financing projects for more than USD 250 million. We are going on the right way".  

The Green Climate Fund is prepared to intensify the approval of new projects to reach the goal of a total of USD 2.5 billion throughout the year, so it has asked countries and entities to present more proposals. 

Zaheer Fakir (South Africa), Vice-President of the Executive Board, said, "We still need more ambitious proposals so that there can be a change of paradigm". 

An important decision made by the Executive Board in Seoul is the adoption of provisional risk and investment guidelines that will help attract proposals with a higher leverage capacity and impact. 

The GCF was created in 2011 in the framework of the United Nations, as a multilateral financing instrument to support mitigation and adaptation to climate change actions in developing countries.