What is the Green Climate Fund (GCF)?
The Green Climate Fund (GCF) was established in 2010 by the 194 countries that are parties to the United Nations Framework Convention on Climate Change (UNFCCC). It is a global climate fund created to support developing countries efforts to respond to climate change challenges.
How would the GCF help to develop Belize?
The fund seeks to transform economies and promote a fundamental change (paradigm shift) in the approach to low-emission and climate-resilient development, taking into consideration the needs of nations that are vulnerable to climate change. The fund’s investments can be in the form of grants, loans, equity, and guarantees.
Why DFC and GCF?
Recognizing that climate financing must be scaled up to match future and increasing demand and recognizing the strategic role of the Development Finance Corporation as Belize’s development finance institution, the Government of Belize nominated the DFC for accreditation to the GCF as a Direct Access Entity (DAE) in January 2019. This accreditation will allow the DFC access to competitively priced financing to fund projects with climate resilience considerations in the small (US$10.0 – US $50.0 million) and low-risk categories (Category C).
DFC – Getting Ready for GCF
In February 2020, the Government of Belize, through its GCF National Designated Authority (NDA), the Ministry of Economic Development (MED), requested that the Caribbean Development Bank (CDB) serve as Delivery Partner (DP) for the preparation and submission of a GCF Technical Assistance Readiness Proposal, and to oversee its implementation. In November 2020, CDB submitted a Readiness Grant Proposal for GCF grant funding consideration. GCF approved the proposal for an amount of US$498,902 in December of that same year.
The Readiness Technical Assistance project commenced in August 2022, with the Frankfurt School of Finance and Management (in consortium with Fitchner Inc.). Under the project, the DFC, with support from the CDB and Belize’s NDA, implemented actions to address the recommendations from the PwC Gap Assessment. The Readiness Grant provided the DFC with technical support in the following policy areas to strengthen its operational policies and enable compliance with accreditation requirements:
(a) Investment Management Policy.
(b) Risk, Asset, and Liability Committee Charter and Asset and Liability Management Procedures
(c) Environmental and Social Management System.
(d) Internal Audit Policy and Procedures.
(e) Procurement Policy and Procedures.
(f) Stakeholder Engagement & Communication policy and Grievance Redress Mechanism
DFC Capacity Building & Training for GCF
On April 12, 2023, the DFC Board of Directors approved the new policies, and a capacity-building plan for directors, management, staff, and DFC clients. Training will commence on April 25th and run until May 30th 2023. During this period, there will be intermittent disruption to DFC’s service. We ask our clients and the general public to plan and monitor our notices for dates and times when services will be affected and to kindly plan accordingly.
How will DFC’s GCF Accreditation help you and our country Belize?
By accessing the GCF, DFC will be able to offer lower interest rates.
We thank our Customers and the General Public for your kind consideration as the DFC works to serve you better.