KOICA approved as an Accredited Entity for GCF

The Korea International Cooperation Agency (KOICA) has been approved as an accredited entity for Green Climate Fund (GCF) during the 29th GCF Board Meeting that was held online over four days beginning on the 28th of June.

The GCF, established in November 2010 as a UN subsidiary financial organization headquartered in Incheon, aims to use its USD 20.2 billion funds to encourage low-carbon development and enhance climate recovery in the developing world. The approval will provide KOICA access to GCF grants in order to implement projects to address climate change in developing countries.

There are around 103 accredited entities globally, including UNDP, UNEP, the World Bank, the ADB, HSBC, and JICA. The entities suggest, develop, and implement projects related to climate change to ensure the fund created by the GCF is effectively applied. At this board meeting, 10 new entities* received accreditation, including KOICA.

* KOICA, Sumitomo Mitsui Banking Corporation, Development Bank of the Philippines, Development Bank of Zambia, Infrastructure Development Bank of Zimbabwe (IDBZ), Moroccan Agency for Sustainable Energy (MASEN), Bank for Investment and Development of Vietnam, Mexico SME Development Bank, TBC Bank, Instituto Interamericano de Cooperación para la. Agricultura (IICA)

To obtain the accreditation, KOICA completed a thorough decision-making process by the GCF secretariat and expert decision panels over two years beginning in July 2018. As the primary role of an accredited entity is the execution of the GCF Fund, KOICA went through a comprehensive verification process on the sustainability of its governance policy (including its policies on the environment, society, and gender equality) as well as its capability to carry out fair and transparent business.

The accreditation that KOICA obtained demonstrates that the agency has advanced as a global development cooperation agency, and its governance, environmental and societal standards, and business capacity are commensurate with the same global standards of international organizations and advanced development cooperation agencies.

Prior to receiving the accreditation, KOICA and the GCF have been working jointly on a USD 38 million climate recovery enhancement project in the Western Plateau of Guatemala since 2019. The project, which was subsidized by three parties (the GCF: USD 22 million, KOICA: USD 5 million, and the government of Guatemala: USD 11 million), is helping to enhance a continuous hydrologic cycle through the management of land and water resources in an alpine district of Guatemala. By supporting projects that inhibit climate change, KOICA is helping to strengthen local communities’ economic bases through sustainable forest management and agricultural business, whilst endeavoring to improve the quality of life.

KOICA is also working with the GCF on a project in Fiji. From this year until 2024, KOICA, the GCF, and Fiji Development Bank are working on a solar energy development project with the budget of USD 10 million to facilitate the circulation of renewable energy on the island of Ovalau. They are also endeavoring to maximize land use by making this project compatible with agriculture.

With the use of the GCF Fund, KOICA will have opportunities to initiate support for global carbon neutrality and climate recovery projects in countries susceptible to climate change.

By initiating ‘Green New Deal’ ODA projects under the Korean government’s 2050 Carbon Neutral Strategy, KOICA is expanding projects that support the globalization of the Korean New Deal and contribute to global carbon neutrality. As an accredited entity, KOICA also plans to expand its innovative projects with various partners, including those in the private sector, to react to climate crises in the developing world.

KOICA President Sohn, Hyuk-sang, said, “This GCF accreditation shows that KOICA has grown as a global development cooperation agency. Going forward, we will expand Green New Deal ODA projects aimed at combatting climate risks in the developing world.”