Improving access to the Green Climate Fund: how the fund can better support Developing Country institutions
The Green Climate Fund is a globally important source of finance for projects in developing countries that address climate goals. Central to the GCF’s formation is an emphasis on providing funds directly to developing country institutions. Through “direct access” it seeks to fund a diverse set of stakeholders including public, private, and non-governmental organizations from developing countries, using a variety of financial instruments including grants, loans, equity and guarantees. Despite accrediting 62 developing country institutions, 42 of these entities have yet to receive project funding. The GCF has launched several initiatives to support Direct Access Entities with project development and approval including the Readiness Programme, the Project Preparation Facility, the Simplified Approval Process, and the Enhancing Direct Access Pilot, but these are not yet delivering sufficiently to meet the need. There are a number of steps the GCF can take to expand the range of entities that receive project funding by improving support to Direct Access Entities.