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GCF approves record $1.97bn climate finance package, reappoints Mafalda Duarte – EnviroNews
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The Green Climate Fund (GCF) has approved a record $1.97 billion in new climate financing for 21 projects, accredited 16 new partner institutions and adopted major policy reforms ahead of its third replenishment cycle, GCF-3.
The approvals, made at the Fund’s 46th Board meeting (B.46) held at its headquarters in Songdo, South Korea, from October 26 to 29, 2026, represent the largest amount of climate finance approved at a single Board meeting.
With the latest approvals, the Fund’s total financing commitments in 2026 have reached $3.3 billion, setting a new annual record.
The GCF said the increased financing capacity was partly made possible by balance sheet efficiency measures introduced at its previous Board meeting, which unlocked more than $4 billion in additional investment capacity.
The newly approved funding brings the Fund’s portfolio to 379 projects and programmes, with GCF financing commitments of $22.3 billion across Africa, Asia-Pacific, Latin America and the Caribbean, and Eastern Europe, Central Asia and the Middle East.
Including co-financing from other sources, the portfolio is now valued at $87.3 billion.
The Fund said its efficiency reforms were also delivering results, with 13 of the 15 projects assessed under its Efficient GCF standard meeting the required benchmarks. The projects recorded an average review period of six months, against a nine-month target.
In a further boost to country ownership and direct access to climate finance, Direct Access Entities (DAEs) will manage 34 per cent of the funding approved at the meeting.
Five of the newly approved projects represent the first single-country projects for Algeria, Cameroon, Moldova and Yemen, with Cameroon securing two projects.
The approvals also include the first direct sovereign loan responding to the Belém Call to Action for the Congo Basin Forests.
Additionally, two Brazilian projects, FP326 and FP327, are the first GCF-funded initiatives to emerge from a country platform supported through the Fund’s Readiness Programme. The projects were developed under the Brazil Climate and Ecological Transformation Investment Platform.
New partners, accreditation reforms
The Board also approved 16 new accreditation applicants, nine of which are Direct Access Entities, further expanding the Fund’s network of institutions through which developing countries can access climate finance.
Thirteen of the newly accredited institutions are the first entities to be approved under the GCF’s Revised Accreditation Framework.
The accreditation process recorded an average review time of four months, compared with the nine-month service standard.
Among the new partners is Maldives Finance and Leasing Company Private Limited (MFLC), which becomes the first national Direct Access Entity in the Maldives.
In preparation for the GCF-3 replenishment, the Board also approved two landmark contribution policies designed to broaden the Fund’s financing base.
These include an updated Policy for Contributions for GCF-3, which provides greater flexibility in engaging with contributors, and the Fund’s first-ever Policy for Contributions from Other Sources, aimed at mobilising resources from non-sovereign and alternative funding sources.
Duarte reappointed for second term
Meanwhile, the Board unanimously reappointed Mafalda Duarte as GCF Executive Director for a second four-year term, recognising her leadership in implementing reforms that have improved the Fund’s efficiency, expanded access to climate finance and increased its capacity to mobilise private sector investment.
Reacting to her reappointment and the outcomes of the meeting, Duarte said the Board’s decision represented a strong endorsement of the Fund’s reform agenda and ambitions.
“I am deeply grateful for the Board’s unanimous support in asking me to serve as Executive Director of GCF for a second term. I see it as an unequivocal vote of confidence in our reform agenda and overall ambition for the Fund,” she said.
She noted that the reforms implemented over the past three years had begun delivering tangible results, particularly through a more efficient accreditation framework, improved project due diligence and better balance sheet management.
According to her, these improvements had been achieved alongside record levels of climate finance approvals and increased support for countries that have historically received inadequate climate financing.
“We will continue to build on this momentum and consolidate the reforms, while ensuring the organization is equipped to deliver at a higher scale and with a clear focus on the greatest systemic impact,” Duarte said.
She acknowledged the support of the Board and the commitment of GCF staff in achieving the results.
Board leadership welcomes record approvals
The meeting also marked the final Board session co-chaired by Leif Holmberg of Sweden and Ambassador Seyni Nafo of Mali, following two years of service.
Holmberg said the record project approvals and adoption of significant policy measures had established a strong foundation for the Fund’s third programming cycle.
He described the outcomes as evidence of the GCF’s growing capacity to support developing countries and deploy climate finance effectively.
Nafo, on his part, highlighted the increased role of national and regional institutions in managing climate finance, noting that 34 per cent of the funding approved at the meeting would flow through Direct Access Entities.
He also welcomed the approval of the first single-country projects for Algeria, Cameroon, Moldova and Yemen.
“Approving almost $2 billion at this Board Meeting is what delivering at scale means: more finance, through country institutions, reaching more countries and communities,” he said.
The GCF operates through a network of 193 partner agencies, known as Accredited Entities, implementing projects in more than 130 countries.
Its global network includes 128 national and regional Direct Access Entities drawn from public, private and non-profit sectors, alongside international financial institutions, including multilateral development banks, United Nations agencies and commercial banks.
The Fund’s latest decisions come as developing countries continue to demand increased, predictable and accessible climate finance to implement their climate commitments and strengthen resilience against the impacts of climate change.