GCF Readiness: Financing Sustainable Development Pathways through IDFC Development Banks

Development financial institutions (DFIs) can help build a more collaborative and efficient global architecture for sustainable development, with the support of the Green Climate Fund (GCF) that can help provide adequate resources. More than ever, public development banks (PDBs) have a role to play: to cope with the COVID-19 crisis, and in support of investments for the definition of new development models, the implementation of the Paris Agreement, and the Sustainable Development Goals (SDGs). The International Development Finance Club (IDFC) is the leading group of 27 national and regional development banks from all over the world. Facilitating direct access to GCF financial resources is of utmost importance, since accessing these resources have been challenging for national and regional institutions (direct access accredited entities – DAEs), leaving countries with a heavy dependence on international access entities that do not necessarily share compatible country programming agendas and have to respond to their own mandate.

The aim of this project was to strengthen the capacities of national and regional IDFC development banks to access GCF resources and to scale up climate finance activities. adelphi supported already accredited DAE-IDFC members in developing and further integrating climate finance tools and methodologies, which were needed for effectively implementing GCF-funded activities and the support of DAE applicants or entities in reaching institutional GCF standards for accreditation. Further, the project work included the support of the banks in the development of individual project pipelines that fulfil GCF co-funding requirements and built the base for a joint IDFC Work Programme.