The Caricom Development Fund (CDF) has been accredited by the Green Climate Fund (GCF).
The announcement was made on the final day of the 37th meeting of the GCF Board, which took place from 23–25 October 2023, in Tbilisi, Georgia. The CDF, which provides financial and technical assistance to Caricom Member States participating in the Caricom Single Market and Economy (CSME), was one of 3 new organisations accredited by the GCF Board. This accreditation empowers the institution to access flexible financing, up to US$10 million per project, for solutions focused on combating climate change and fostering a sustainable future for the region.
Through this new partnership, the CDF will contribute to the implementation of the GCF’s Strategic Plan, which aims to address emerging climate priorities and the needs of developing nations. The CDF, given its programming focus, will be able to propose projects involving both the public and the private sectors, including micro, small and medium-sized enterprises; contribute to the adaptation and mitigation balance in the GCF portfolio; and enhance private sector participation by reducing the risk of climate investments using financial instruments such as guarantees.
The CDF’s Chief Executive Officer Rodinald Soomer stressed that becoming a GCF-accredited entity greatly enhances the availability of concessional financing to the CDF Member States, enabling them to invest in and implement more robust climate mitigation and adaptation strategies to build resilience. “The CDF has achieved this milestone at a time when extreme weather events are adversely affecting the Caribbean with increased frequency and severity, heightening the urgency of the region to respond in an accelerated manner to protect lives and livelihoods, especially in the highly vulnerable and disadvantaged countries, regions, communities and economic sectors in Caricom that the CDF is mandated to serve.”
Additionally, Resource Mobilisation Officer Eugene Williams described the CDF’s accreditation to the GCF as a game changer for the Caricom region. “We now have access to a larger pool of resources to help Member States with climate action projects as outlined in their Nationally Determined Contributions. This accreditation also expands the number of regional entities with which Member States and agencies in both their public and private sectors can collaborate.”
The GCF is the world’s largest dedicated multilateral fund for climate initiatives. It was created in 2010 under the United Nations Framework Convention on Climate Change. The primary goal of the GCF is to help developing countries combat climate change. The fund focuses on reducing greenhouse gas emissions and improving climate resilience with an emphasis on countries most affected by climate change.
Since 2008, the Barbados-based CDF has actively supported renewable energy (RE), energy efficiency (EE), and climate change initiatives in the Caribbean region. Among the projects it has supported are the solar farm at the Argyle International Airport in St Vincent and the Grenadines, the hybrid solar/battery storage plant to provide electricity in Barbuda, the Rural Agriculture Infrastructure Development project in small farming communities in Guyana, and grant assistance to 26 businesses in Grenada for RE and EE projects.
The accreditation of the CDF by the GCF is a significant step towards establishing a sustainable future for Caricom Member States. With access to the GCF’s US$13.5 billion funding portfolio, CDF is now better placed to assist the region in accelerating its fight against climate change, enhancing resilience, and positively impacting communities and the environment.
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