Green Climate Fund Clears Record $1.2 Billion for Global Climate Projects

The Green Climate Fund, the world’s largest multilateral vehicle for climate finance, has approved its biggest investment package to date, authorising about $1.2 billion for 17 projects after a board meeting that included backing from the United States. The decision comes as overall development aid faces sharp cuts, with the OECD projecting a 17% decline this year after a 9% drop in 2024. The allocations include $227 million to expand green bond markets in ten countries, $200 million for the India Green Finance Facility to scale renewable-energy and efficiency projects, and $150 million to bolster East Africa’s food system, a programme expected to support nearly 18 million people. The latest approvals lift GCF’s committed portfolio to roughly $18 billion spread across 133 nations; donors have pledged $29.9 billion and paid in $21 billion so far. Alongside the funding, the board endorsed procedural reforms aimed at accelerating disbursements. Accreditation of direct-access entities—national and regional institutions that channel funds locally—is to be shortened from an average 30 months to under nine by shifting due-diligence checks to the project stage. The measures are designed to speed up climate-finance flows to developing economies confronting intensifying climate impacts.