What is GCF
What is GCF
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 117 institutions worldwide 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 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