KfW First Development Bank to Sign Master Agreement with Green Climate Fund (GCF)

World | Climate Change

On the occasion of the Green Climate Fund’s board meeting, KfW recently  signed a master agreement with the GCF. The complex agreement governs the rights and obligations of the GCF, the accredited institutions and their implementation partners, and is a major prerequisite for implementing specific projects.

“Signing this agreement is an important milestone in our further cooperation with the GCF, which can now enter its active stage. We are proud to be the first major international development bank to have negotiated this hurdle,” says Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

The Green Climate Fund is to become a key instrument in funding the resolutions of the Paris Climate Change Agreement. The GCF works with accredited institutions to provide projects in developing countries with grants and loans. KfW has been accredited in 2015 as one of the first international institutions to finance GCF climate projects.

In the meantime, the GCF now has commitments from numerous countries for more than USD 10.3 billion, of which USD 1.2 billion has already been pledged for projects. So far, one project proposed by KfW to the GCF has been approved: the climate adaptation project in Bangladesh. This project will see the building of 45 new cyclone protection shelters along Bangladesh’s coastline in three of its poorest districts, while 20 other shelters are to be “climate-proofed” and 80 km of storm-proof access roads constructed. Further GCF projects of KfW in developing countries are currently in the pipeline, e.g. a water supply project in the Simiyu region in Tanzania.

Source: kfw.de