The Renewable Energy Industry in CARIFORUM Countries

RENEWABLE ENERGY INDUSTRY STAKEHOLDER ASSESSMENT

3.17.8 | GREEN CLIMATE FUND

The Green Climate Fund (GCF) was established by the 194 countries which are signatories to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010. The GCF is a global facility designed to respond to climate change needs by financing projects which target low-emission and climate-resilient development. Its scope includes: • Mitigation projects which seek to limit or reduce greenhouse gas (GHG) emissions • Adaptation projects which seek to cope with the impacts of climate change. Particular attention is focused on the Least • Developed Countries (LDCs), Small Island Developing States (SIDS), and African States. A significant financial investment is required to fund the RE work that is necessary. Traditional modalities used by some banking institutions do not allow some projects to qualify and so in these cases the GCF is both an attractive and a relevant option for the Caribbean region. The GCF provides financing for projects and programs in the form of: • Grants • Concessionary loans It implements projects through Accredited Entities (AE) which meet the standards of the Fund. AEs execute various activities including the development of funding proposals, management and monitoring of projects. The GCF promotes shared financing and normally without caps on the amounts. However, caps may be applied for grant financing components for the private sector. Other considerations include the number of beneficiary countries and the number of years over which the project is implemented. Projects must also be aligned with the GCF’s 6 investment criteria. • Continuity • Effectiveness • Ownership • Paradigm shift • Financial risk and policies • How project is funded, including other resources and environmental footprint In order to reduce risks and assist applicants, the GCF encourages discussion, submission of concept notes, technical support to assist with document preparation, use of feasibility studies, and evidence gathering. Experts are made available to assist further as required. All requests must be made to the GCF through an AE using standard proposal templates. The AEs work with the private and public sectors to develop projects for submission, as well as provide technical support in completing such applications. • Blended finance • Equity schemes • Guarantees

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The Renewable Energy Industry in CARIFORUM Countries