Green Climate Fund and World Bank partnership unlocks USD 2.7 billion for climate action, Marshall Islands first to benefit with USD 44M project
GCF Executive Director a.i., Javier Manzanares and Laura Tuck, World Bank Vice President for Sustainable Development, met on Friday in Washington D.C. to strengthen the climate partnership between the two organisations, welcoming an agreement that will allow projects worth USD 2.694 billion in climate finance to be advanced in ten countries. Marking this new momentum, Manzanares and Tuck signed a project agreement to build the resilience of the Marshall Islands, which is facing an increased force of tropical storms that threaten its sustainability.
Manzanares stated: “GCF’s strong partnership with the World Bank is a key part of our strategy to support developing countries' response to the climate challenge. We are now ready to move ahead with projects in ten countries, starting with the Marshall Islands. As we enter our replenishment year, GCF is showing that we are working effectively with a huge range of partners to deliver climate results on the ground to those most in need. An ambitious and successful replenishment is crucial to our ability to support the Paris Agreement by financing impactful, country-driven climate action.”
He continued: “The Pacific Resilience Project is critical to the future of the Marshall Islands and its people. GCF prioritises support to Small Island Developing States (SIDS), which are so vulnerable to the impacts of climate change.”
“This is the first official signing of a project-level agreement between the Green Climate Fund and the World Bank,” said Laura Tuck, Vice President for Sustainable Development, World Bank. “We’re particularly pleased that this is focused on climate resilience for one of the world’s most vulnerable island countries. We look forward to deepening our partnership with GCF by working together on a series of transformative climate projects.”
The signing of the project agreement took place on the same day that the framework agreement between World Bank and GCF became effective, marking a new stage in this critical partnership for climate action in developing countries. The framework agreement, known as an Accreditation Master Agreement (AMA), sets the conditions for the relationship between GCF and the World Bank. This allows the two international organizations to move ahead with the implementation of nine climate projects in ten developing countries: Bangladesh, Brazil, Burkina Faso, Indonesia, Mali, Republic of the Marshall Islands, Solomon Islands, Vietnam, and a joint project in Tajikistan and Uzbekistan. The first such project agreement is the Pacific Resilience Project Phase II for the Republic of the Marshall Islands (RMI) signed today, and other project agreements are expected to be signed soon. The nine projects that have been approved for funding in the past two years cover ten countries, and amount to USD 576.55 million in GCF resources committed to mitigation and adaptation action.
The Pacific Resilience Project Phase II for Republic of the Marshall Islands (RMI) will support this low-lying nation in protecting its population against the impact of the increasing intensity of Pacific cyclones. The atoll nation is highly vulnerable to sea-level rise and changes in waves and storm surge. The project will improve resilience to the increasing risk from changes in waves and storm surge through new coastal protection measures. It will also strengthen preparedness of the local population for disaster events, and provide financial support for climate-related and other disaster responses. The project will be co-financed by GCF and the International Development Association (IDA) of the World Bank. GCF will provide a grant of USD 25 million, matched by a direct grant from IDA of USD 19.631 million and an additional USD 4 million through an IDA regional grant.
As the world’s largest dedicated fund for climate action, GCF enables developing countries to reduce GHG emissions and become more resilient to the impacts of climate change. It has a portfolio of 93 projects, allocating USD 4.6 billion in GCF resources for mitigation and adaptation action in developing countries through a network of 75 project partners. GCF also supports nearly 120 countries in building their capacity to plan climate responses, and to access climate finance. The GCF Board launched its first replenishment in October 2018, and the year-long process will culminate in a pledging conference towards the end of 2019, expected to deliver the resources needed for GCF to strengthen its mission.