Green Climate Fund

Title Green Climate Fund
E-mail, phone number and mailing address

c/o Development Bank of Southern Africa,
Headway Hill,
1258 Lever Road,
Midrand,
South Africa

Facility URL www.greenclimate.fund
Facility Objectives

The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change.  GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.

The DBSA received its accreditation as an entity of the GCF in March 2016. The DBSA is accredited as a direct access entity that can implement all sizes (in terms of total amount as well as environmental and social risk category) of GCF funded projects in the Sub-Saharan Africa region.  The Bank has the opportunity to access GCF funds in order to support innovative and risk-sharing approaches in projects that contribute towards low-carbon and climate-resilient development.

Key activities
Projects that will benefit from GCF funding resources should meet the following criteria: 
  • Impact potential - potential of the programme/project to contribute to the achievement of the Fund's objectives;
  • Paradigm shift potential - degree to which the proposed activity can catalyse impact beyond a one-off project or programme investment;
  • Sustainable development potential - wider benefits and priorities, including environmental, social and economic co-benefits as well as gender-sensitive development impact;
  • Responsive to recipient’s needs - vulnerability and financing needs of the beneficiary country and population in the targeted group;
  • Promote country ownership - beneficiary country ownership of and capacity to implement a funded project or programme;
  • Efficiency & effectiveness - economic and, if appropriate, financial soundness of the programme/project, and, for mitigation-specific programmes/projects, cost-effectiveness and co-financing.
Type of finance provided

Grants, loans, guarantees, equity.

The GCF has a number of investment products, for both the public and private sector - 

  • Private Sector Facility:
    - Enables the GCF to directly and indirectly finance private sector mitigation and adaptation;
    - Addresses barriers to private sector investment e.g. market failures, insufficient capacity and lack of awareness, in order to mobilise private capital and expertise at scale;
    - Promotes participation of the private sector, in particular local actors, including small and medium-sized enterprises and local financial intermediaries;
  • Public Sector Facility:
    - Enables the GCF to support public sector mitigation and adaptation initiatives;
    - Offers concessional terms to vulnerable countries and less concessional terms other countries.
Size of project supported

No minimum or maximum project size. 

Range of funding provided (min/max)

No minimum or maximum level of financial support

Beneficiaries supported

Public sector; private sector; non-governmental organisations (NGOs)

Project type

National and sub-national.

Project preparation phases supported

Enabling environment; project definition; project feasibility; project structuring; transaction support; post-implementation support.

Application process
Projects that align with the DBSA's core mandate and meet the GCF funding criteria can be co-financed by both the Bank and the Fund. The DBSA will process projects that fall within its core sectors (energy, water, transport, ICT).
Developing countries, least developed countries (LDCs) and small island developing countries (SIDS) can access GCF funding through the DBSA as an accredited entity. Project proponents can submit their proposals and engage with the DBSA which will further lodge applications to the GCF. 
Eligibility exclusions
Projects should also be supported by the country’s national designated authority (NDA), through the provision of a No Objection Letter. 
Countries Benin, Burundi, Côte d'Ivoire, Ghana, Guinea, Guinea-Bissau, Liberia, Niger, Nigeria, Sierra Leone, Comoros, Djibouti, Eritrea, Ethiopia, Seychelles, Somalia, Sudan, Tanzania, Uganda, Democratic Republic of Congo, Equatorial Guinea, Gabon, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia, Zimbabwe
Sub-Sectors Power generation/renewable sources , Logistics, Water resources protection, Water supply and sanitation, Backbone infrastructure

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