Executive Director, Mafalda Duarte, announced on Wednesday, July 15, 2026, that instituted efficiency reforms will increase the Green Climate Fund’s (GCF’s) capacity to finance new projects by an additional #4 billion, starting from its next Board meeting in October 2026. This enhanced funding capacity results from a Board decision adopted earlier this month relating to the management of GCF’s balance sheet, allowing significantly greater investments based on existing resources.
The new methodology is part of the reform agenda introduced by Executive Director Duarte to enhance GCF’s efficiency and impact. The historical approach would have enabled $1.37 billion of funding for new projects in the second half of 2026 and 2027. Under the refined approach, the Secretariat has now determined that approximately $5.65 billion will be available for new programmes and projects – an increase of more than $4 billion from the same balance sheet capacity – assuming a similar portfolio composition and deployment of financial instruments as from 2015-2025.
Importantly, this will be achieved whilst maintaining GCF’s unique risk profile and high degree of concessional finance which ensures that: (1) over half its finance is directed towards adaptation, and the majority of which is invested in Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States and (2) private sector investments are catalysed and new markets are created.
“This reform allows us to manage GCF’s balance sheet much more efficiently while preserving the unique concessional and risk profile of GCF in the financial system that allows us to do what others can’t with the largest network of partners both from the public and private sectors,” said Duarte.
“We intend to put these resources to work over the next two years. Importantly, we expect that this $4 billion will unlock at least three times that amount in co-finance, resulting in an additional and much needed $16 billion worth of investments in the short term that will make countries and communities more resilient to the impacts of climate change, promote energy-food-water security, catalyze private sector investments and create jobs.”
For contributors to GCF, this change enhances the climate impact of every dollar invested in GCF. Going forward, every $1 contributed to GCF will now support approximately $1.30 in new funding to projects in developing countries, significantly increasing the Fund’s impact. For beneficiary countries, this translates to significantly greater amounts of urgently needed investments, while GCF maintains its unique concessionality and risk appetite which is a key enabler of its transformative impact.
source . Environews
