Ecobank targets $250m climate project after green fund accreditation
The Green Climate Fund has given Ecobank Ghana a Green Climate Fund (GCF) accreditation.
This was completed last year after unanimous Board approval of the recommendations of the Fund’s Panel of Experts on Accreditation.
Financial capacity of the accreditation enables the bank to finance projects up to USD250million.
Announcing the latest feat, Ecobank Ghana said the accreditation positions them as a thought leader in the wider Climate Action Community and at the forefront of environmental initiatives and solutions.
“Ecobank, therefore, becomes the first entity in Ghana and the first Commercial Bank in Sub-Saharan Africa to be accredited to the Fund,” the bank said.
This accreditation followed the GCF Panel’s review of Ecobank’s processes, procedures and compliance with the fiduciary standards of the GCF.
With this accreditation, the bank attains direct access to funding for the financing of Climate Change Mitigation and Adaptation projects, as well as grants for capacity building.
With this accreditation, Ecobank will receive funds from the GCF for on-lending to beneficiary institutions involved in climate change projects in Ghana.
The bank, in consultation with the Ministry of Finance, has so far developed the Accelerating Solar Action Programme (ASAP), as the first project to be submitted to the GCF for funding.
The ASAP aims at mobilising concessionary finance to promote the use of solar PV systems in Ghana, with a clear focus on SMEs and households.
Entities that are interested in submitting funding proposals to the GCF may initiate discussions with Ecobank Ghana.
The Green Climate Fund (GCF) is a global fund created to support efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries to limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change.
It seeks to promote a paradigm shift to low-emission and climate-resilient development, considering the needs of nations that are particularly vulnerable to climate change impacts.
The Fund was set up in 2010 by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC), as part of the Convention’s financial mechanisms.
GCF recognises the need to ensure that developing country partners exercise ownership of climate change funding and integrate it within their own national action plans. The National Designated Authority (NDA) with beneficiary countries acts as the interface between their government and GCF and must approve all GCF project activities within the country.
This country-driven approach ensures GCF’s activities operate in agreement with national priorities. As an Accredited Entity, Ecobank Ghana is accountable to the GCF Board for all resources received from the Fund for programmes and projects.