The Climate Change Commission (CCC) is seeking a faster accreditation of direct access entities (DAEs) to allow access to financing from the Green Climate Fund (GCF) that will help implement crucial climate change adaptation and mitigation interventions in the country.
Following the 27th Meeting of the GCF Board held virtually from Nov. 9 to Nov. 13, the CCC welcomed the accreditation of four new accredited entities (AEs) or partner organizations, ranging from country organizations called DAEs, to regional and multi-national bodies.
AEs submit funding proposals and act as a conduit of GCF funds as they implement climate projects approved and funded by the GCF.
CCC Commissioner Rachel Herrera, who sits as Alternate Member in the GCF Board representing the Asia-Pacific constituency, appreciated the Board’s accreditation of the new AEs—three of which are DAEs—but also noted that it is still too low in enabling stronger country ownership for developing countries.
In the case of the Philippines, only the Land Bank of the Philippines has completed the process of approval as DAE for GCF.
“We continue to express our concern that AEs spend an average of 21.1 months from application towards approval—with one DAE taking up to 30 months, which are 30 months’ worth of time and resources lost,” Herrera said.
“The direct access modality is designed to help developing countries exercise ownership of finance, align these with national climate action plans, and not the least, build the needed capacity within our national institutions for climate projects. We articulate these points to push for concrete ways to address persistent challenges, so that more DAEs go through a shorter accreditation period and will encourage more applicants to find more clarity and efficiency in the process,” Herrera added.
CCC noted that the GCF is the world’s largest climate fund that aims to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries.
GCF serves the Paris Agreement on climate change and is governed by a Board that has equal representation from developing and developed countries.
CCC also noted that the 27th GCF Board Meeting raises the GCF’s total portfolio to USD7.2 billion and that the value of the approved projects for 2020 alone is over US$2 billion—a record year for GCF programming.
It also welcomed the approval of the Philippines as a participating country in Climate Investor One, an innovative blended finance facility managed by Climate Fund Managers and providing an integrated, full project life cycle financing solution to support the development, construction, and commissioning of renewable energy projects more expeditiously and at reduced cost.
The project is set to deploy US$100 million capital in a total of 18 countries for historic and new renewable energy projects.