Climate Fund
structures to support distributed scale energy or utility scale so there are several billions of dollars that are available across the world that can support this,” Galbraith added.
He noted that special funding is available for projects which focus on renewables and clean energy, but admitted that in most cases it requires a balancing act.
“A big part of the operations of businesses in Jamaica is the cost of energy whether it’s the hotel sector, manufacturing, industrial, across the board. So, to a large extent we have to address the cost of energy. From a geopolitical or global perspective, there’s the whole issue of carbon emissions, which has both negative and positive costs, meaning if businesses don’t cut carbon emissions you’re going to be punished and there are opportunities also to reduce; so we clearly have to strike that balance,” he stated.
Analysts contend that climate change offers businesses an unprecedented chance to capitalise on new growth and investment opportunities that can protect the planet as well. GCF employs part of its funds to help mobilise financial flows from the private sector to compelling and profitable climate-smart investment opportunities.
From August 1, 2021 to July 31, 2022, the GCF accelerated its programming of new climate finance in developing countries with US$1.69 billion approved for 19 climate projects around the world.
The total number of approved projects stood at 196, and the total amount of GCF funding was US$10.4 billion, with US$28.5 billion of co-financing mobilised.
These approved projects and programmes are expected to abate a total of two billion tonnes of carbon dioxide equivalent of greenhouse gas (GHG) emissions and reach 196 million direct and 615 million indirect beneficiaries, based on the estimations of accredited entities (AES).
GCF can structure its financial support through a flexible combination of grant, concessional debt, guarantees or equity instruments to leverage blended finance and crowd-in private investment for climate action in developing countries. This flexibility enables the fund to pilot new financial structures to support green market creation.
GCF is mandated to invest 50 per cent of its resources to mitigation and 50 per cent to adaptation in grant equivalent. At least half of its adaptation resources must be invested in the most climate vulnerable countries ie small island developing states (SIDS), least developed countries (LDCS) and African states.
GALBRAITH... Several countries have been able to tap the resources of that fund