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MANILA, Philippines - The Asian Development Bank (ADB) has signed an agreement with South Korea-based Green Climate Fund (GCF) to scale up its climate finance delivery in developing member countries.

The Accreditation Master Agreement (AMA) signed between the two entities gives ADB access to a new funding source to strengthen climate mitigation and adaptation efforts in Asia and the Pacific.

GCF works exclusively with accredited entities to support climate mitigation and adaptation projects and programs. The AMA cements ADB’s accreditation which was approved in March 2015. This enables the multilateral development bank to apply for GCF funding for all sizes of projects, as well as all environmental and social risk categories. These funds would be in addition to ADB’s own commitment of providing climate financing of $6 billion per year by 2020.

“The Accreditation Master Agreement between the GCF and ADB will open the way to deeper collaboration between our institutions,” ADB general counsel Christopher Stephens said in a statement. “Working together with the GCF, we will build a robust pipeline of climate projects that support the development and climate objectives of our developing member countries.”

Acting GCF general counsel Raul Herrera said the Asia and the Pacific Region, which ADB services, has a key role in global economic growth but it is vulnerable to climate change, making it essential that it meets mitigation and adaptation targets.

“As the dynamo of global economic growth, with Asia Pacific continuing to record the world’s strongest growth, this region has a key role to play in tackling climate change,” Herrera said. “The vital importance of Asia in meeting the climate challenge, along with GCF’s mandate to pursue transformative low-emission and climate-resilient development across the planet, means a shared strategic approach between GCF and ADB in this area is essential.”

Access to GCF financing starts with a submission by ADB of a funding proposal which would be reviewed and approved by the GCF board.

GCF financing may include a combination of public and private sector initiatives and provide a range of financing instruments such as grants, loans (including concessional loans), equity and risk mitigation instruments such as guarantees.

ADB’s current GCF accreditation is valid until March 2020, subject to reaccreditation every five years.       

GCF, headquartered in Songdo, South Korea is a global fund created to support the efforts of developing countries to respond to climate change challenges.

It was established in 2010 by 194 governments to limit or reduce greenhouse gas emissions in developing countries and catalyze a flow of climate finance to invest in low-emission and climate-resilient development.

As of June 2017, 42 countries and one city have signed contribution agreements with GCF worth $10.1 billion out of the $10.3 billion pledged.

Source: The Philippine Star | 21 August 2017

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