WASHINGTON, DC – Today, at the Major Economies Forum on Energy and Climate, President Joe Biden announced $1 billion in U.S. funding to the Green Climate Fund (GCF), the world’s largest climate and environment focused multilateral fund. The $1 billion doubles the total funding provided from the United States to the GCF, of which half is expected to support adaptation-related projects and the President’s Emergency Plan for Adaptation and Resilience (PREPARE). The funding underscores Treasury’s commitment to support countries to adapt to the impacts of a changing climate, improve energy and food security, build resilience, and protect critical ecosystems, such as forests, and biodiversity.
Secretary Yellen applauded the announcement, saying, “The United States’ $1 billion in funding to the GCF will mobilize billions in additional public and private finance for investment in climate adaptation and emissions mitigation. This funding provides critical concessional finance to support developing countries’ transition to resilient and sustainable economies and enhance their energy security.”
The GCF partners with over 200 entities, including private sector financial institutions, multilateral and national public development banks, and civil society organizations, to finance a portfolio of impactful climate and environmental projects in 128 developing countries. Through its investments, the GCF catalyzes additional sources of finance for adaptation, mitigation, and resilience-focused projects and prioritizes funding for the most vulnerable countries, notably small island developing states, least developed countries, and African states. To date, GCF’s approximately $12 billion in financing has mobilized an additional $33 billion in public and private co-financing.
U.S. institutions, including impact investors and nonprofits, are among the GCF’s network of implementing partners. Several are currently partnering with GCF on projects that are under implementation. In addition to supporting developing countries’ climate strategies, the U.S. contribution will also help to create growth and investment opportunities in developing markets for U.S. businesses.