Our Sustainability
Economic, social and environment development is deeply embedded in our values and informs how we conduct business, develop products and services and deliver on our goals and commitments.
Economic, social and environment development is deeply embedded in our values and informs how we conduct business, develop products and services and deliver on our goals and commitments.
The Green Climate Fund (GCF), established in 2010 by 194 countries under the United Nations Framework Convention on Climate Change (UNFCCC) is the world’s largest Climate Fund, dedicated to supporting developing nations in their efforts to address the challenges of climate change. The fund focuses on mitigating greenhouse gas emissions and enhancing climate resilience, while prioritizing the needs of countries most vulnerable to climate change impacts. The institutions that have achieved GCF accreditation represent a diverse range of international, regional, and national entities committed to driving climate action.
In July 2023, DFCC Bank became the first and the only Sri Lankan entity to obtain Accreditation of the Green Climate Fund (GCF). Having undergone the rigorous process to secure GCF Accreditation, DFCC Bank has joined the ranks of 133 institutions worldwide (as at 30 September 2024) that are at the forefront of combating climate change and building a sustainable future. With DFCC Bank now joining this esteemed group, it reinforces the Bank’s reputation as a leading player in sustainable finance, as well as its commitment to tackling climate change and promoting sustainability.
The GCF has Accredited DFCC Bank for the following specialized fiduciary standards set out in the Fiduciary Principles and Standards:
Specialized fiduciary standards for project management; and
Specialized fiduciary standards for on-lending and blending for loans, equity and guarantees.
The GCF has Accredited DFCC Bank to carry out Funded Activities that fall within the following Environmental and Social Risk Categories:
Medium risk (Category B/Intermediation 2 (I-2). (including Lower risk (Category C/Intermediation 3 (I-3))
The GCF has Accredited DFCC Bank to carry out GCF Projects and activities within GCF Programmes for the following sizes:
up to and including Medium-sized Activities.
The GCF Accreditation allows DFCC Bank to access concessionary funding for projects with a value of up to USD 250 million per project from the GCF, enabling the financing of climate mitigation and adaptation projects across Sri Lanka. Eligible areas include:
Energy Generation and Access
Low Emission Transport
Health, Food and Water Security
Livelihoods of people and communities
Buildings, Cities, Industries and Appliances
Forest and Land Use
Ecosystems and Ecosystem Services
Infrastructure and the Build Environment
Examples include renewable energy, energy efficiency, green buildings, conservation, afforestation, climate-smart agriculture, and climate-resilient infrastructure.Thus, we are excited to leverage this accreditation to mobilize climate finance and spearhead impactful projects that address the urgent climate challenges facing Sri Lanka.
The Project Investment Criteria of GCF are as follows:
Impact potential
Mitigation impact or Adaptation Impact
Paradigm shift potential
Degree to which GCF can achieve sustainable development impact beyond a one-off project or programme investment through replicability and scalability
Sustainable development potential
Wider economic/social/environmental benefits and priorities
Environmental and social safeguards and gender equality
Needs of the recipient
Vulnerability and financing needs of the beneficiary country and population
Is there an absence of alternative sources of financing?
Country ownership
Country ownership and capacity to implement a project in alignment with the country’s policies, climate strategies, and institutions
Efficiency and effectiveness
Does the project foster cost-effectiveness and private sector funding mobilization?
DFCC Bank will actively seek collaborations with government agencies, local financial institutions, international organizations, private enterprises, and civil society groups, as these partnerships strengthen our ability to provide comprehensive and sustainable solutions for climate change.
We work closely with the Climate Secretariat of the Ministry of Environment, other ministries, private investors, national and international financial institutions, development agencies and other relevant stakeholders to fulfill Sri Lanka’s climate-related commitments and the goals outlined in the Nationally Determined Contributions (NDCs) and the National Adaptation Plan (NAP).
“Sri Lanka is facing rising temperatures and extreme weather events attributable to climate change. As the world’s largest climate fund dedicated to helping developing countries take climate action, GCF is pleased to welcome DFCC Bank as a Direct Access Entity, the first in Sri Lanka. We look forward to a fruitful and long-term partnership to ensure a low emission and climate resilient future for people across the nation” – Henry Gonzalez, Executive Director, GCF