Green Climate Fund approves $1 billion in funding for resilient development
On March 1, 2018, the Green Climate Fund (GCF), a funding source under the United Nations Framework Convention on Climate Change (UNFCCC)* that helps finance climate-resilience and green growth in developing countries, announced that it would allocate USD 1 billion to 23 separate climate change initiatives in 22 countries. The countries, which include Rwanda, Mongolia, and Brazil, were allocated up to USD 200 million each to fund projects ranging from resilient agriculture to urban renewal and renewable energy. With the newly announced projects, the GCF has a portfolio of 76 programs, and has approved over USD 3.7 billion in resilience-centered climate change development.
Rwanda was allotted USD 32.8 million to strengthen climate resilience in rural communities, with a specific focus on the Gicumbi District in the country’s Northern Province. The district is vulnerable to heavy rains which result in flooding and landslides, which have only been perpetuated and strengthened by climate change. Through the funding, Rwanda Green Fund (RGF) will facilitate projects that focus on watershed restoration and enhancement, sustainable forest resource management, and resilient agriculture in small communities. The RGF and the district itself will provide USD 147,000 and USD 107,000, respectively, in additional financing for the projects which will directly impact 150,000 people, and indirectly impact another 130,000.
The projects are predicted to last from 2018 until 2024, and are expected to reduce carbon emissions by 273,720 tonnes during the duration of the projects. The lessons learned during implementation will be applied to other districts across the country.
Brazil was allocated USD 195 million, the largest amount for any country, to develop Finance Instruments for Brazil Energy Efficient Cities (FinBRAZEEC) programs. In partnership with the World Bank, CAIXA Econômica Federal, private partnerships, and other concessionaires, the project itself will have a total investment of USD 1.3 billion, which will go towards decreasing the country’s energy intensity, (“energy use per real dollar GDP”), through sustainable means. The project has a specific goal of increasing Brazil’s energy efficiency by decreasing its energy demand, while securing lasting private investment into the energy sector. The project has an estimated implementation duration of seven years, a total duration of 15 years, and is projected to avoid the release of 17.4 million tonnes of CO2.
Further information on the other projects can be found at this link.
*The UNFCCC is an international environmental treaty enacted on March 21, 1994, with an objective to “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”. The framework provides no binds on limits to green house emissions; instead it supplies an outline on how to negotiate further international treaties to further its objective.
Sources and Further Reading:
Rwanda set to benefit from new climate resilience funding – Climate Action
GCF Board approves over USD 1 billion in funding for climate mitigation and adaptation – Green Climate Fund
Rwanda receives $32.8 million grant from Green Climate Fund to strengthen climate resilience in Gicumbi District – Rwanda Environment Management Authority
PROJECT FP065 – Financial Instruments for Brazil Energy Efficient Cities (FinBRAZEEC) – Green Climate Fund
What is energy intensity, and how does it relate to energy efficiency? – American Council for an Energy Efficient Economy
United Nations Framework Convention on Climate Change – United Nations