The Green Climate Fund approves $5 million in funding for a KOICA participating project ‘Fiji Agrophotovoltaic Program’
The Green Climate Fund approves $5 million in funding
for a KOICA participating project ‘Fiji Agrophotovoltaic Program’
‘Fiji Agrophotovoltaic Program’ promoted by KOICA(Korea International Cooperation Agency, President Lee Mi-Kyung) will receive financial support from the GCF(Green Climate Fund)*.
* Green Climate Fund: International financial institution to assist developing countries in adaptation and mitigation practices to counter climate change.
Through the 26th board meeting held online on the 19th, GCF approved $5 million in funding for the project to build solar power plants, which is the first step of the ‘Fiji Agrophotovoltaic Program’, promoted by KOICA in a public-private partnership with the Fiji Development Bank. It marks the first time that the Korean government attracted GCF funds by directly participating in the development of projects based on public-private partnerships.
Fiji, an island nation in the South Pacific, is one of the world’s 10most exposed countries to natural hazards, according to the CRI(Climate Risk Index), being seriously affected by climate change. Food security is also under threat due to climate change such as drought, floods, and typhoons. In response, the Fijian government is actively implementing a climate change policy for the conversion of the whole country to 100% renewable energy generation by 2035.
To support Fiji's conversion towards renewable energy generation, KOICA has managed the ‘Fiji Agrophotovoltaic Program’ through technical cooperation with the KEITI(Korea Environmental Industry & Technology Institute) since 2018. The project consists of two stages: ▲ building and managing solar power plants on the island of Ovalau in Fiji, ▲ providing technical support for strengthening agricultural productivity at the plant site.
The total budget for the project is expected to reach $20 million, of which $9 million will be attracted from the GCF, $8 million by KOICA, $1 million by the FDB(Fiji Development Bank), and the rest by private equity investments. In addition to $5 million for the first phase of the project, supported through the GCF, it plans to attract $4 million more after proposing and approving the second phase of the project (strengthening agricultural productivity and technical support).
KOICA expects to achieve ▲ greenhouse gas reduction (a yearly reduction effect of 90,000tCO2eq), ▲ stable power supply through BESS(Battery Energy Storage System) support, ▲ improvement of the quality of life for local people by providing more reliable electricity and implementing climate-resilient agriculture, and ▲ operating solar energy and strengthening agricultural capacity.
Also, this project is significant in that it will be the first project that KOICA directly participates in the project as a GCF implementation organization. KOICA is currently proposing GCF projects and is brightening the process of certifying as AE(Accredited Entities)*. KOICA used to participate in projects by only co-financing in GCF projects carried out by other implementation bodies, but it is expected that KOICA will be able to take the lead in this project after being certified as a GCF AE.
* GCF AE(Accredited Entities): Accredited Entities partner with GCF to implement climate change projects that meet low-carbon, climate-friendly development principles. Guided by GCF’s investment framework and the priorities of developing country governments, AEs convert concepts into action. AEs carry out a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programs. Currently, only 70 organizations worldwide are certified.
KOICA president Lee Mi-Kyung said that "In the post-Covid-19 era, climate change is an essential task that the world must work together to respond to and resolve.” She also mentioned, "In the future, KOICA will work with the GCF to promote various climate change projects to support developing countries in responding to climate change, and make efforts to advance the global Green New Deal."
About KOICA (Korea International Cooperation Agency)
The Korea International Cooperation Agency (KOICA) was established as a government agency in 1991, and is dedicated to providing grant aid programs of the Government of the Republic of Korea. KOICA endeavors to combat poverty and support the sustainable socioeconomic growth of partner countries. For more information, visit http://koica.go.kr
Aerial view illustration (Source: Envelops, Illustrator: Kim Soo-Jung)