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Zambia and several other developing countries are hoping to benefit from the newly announced additional US$ 4 billion in new projects by the Green Climate Fund (GCF), authorities have said.
Announcing the development in a statement, Fund Executive Director, Mafalda Duarte, said the increased capacity followed a Board decision adopted earlier this month on the management of GCF’s balance sheet and the change would allow significantly greater investments based on existing resources.
She said under the previous methodology, GCF would have been able to approve US$ 1.37 billion for new projects in the second half of 2026 and 2027.
“Under the refined approach, the Secretariat has determined that approximately US$ 5.65 billion will now be available for new programmes and projects,” Duarte said.
She stated that this represents an increase of more than US$ 4 billion from the same balance sheet capacity, assuming a similar portfolio composition and deployment of financial instruments as from 2015-2025.
“This reform allows us to manage GCF’s balance sheet much more efficiently while preserving the unique concessional and risk profile of GCF in the financial system that allows us to do what others can’t with the largest network of partners both from the public and private sectors,” Duarte said.
She stated that the new methodology was part of the reform agenda to enhance GCF’s efficiency and impact.
Duarte stressed that the increase would be achieved while maintaining its unique risk profile and high degree of concessional finance.
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“More than half of its finance is directed towards adaptation, with the majority invested in Least Developed Countries, Small Island Developing States, and African States,” she said.
She also said the Fund would continue to catalyze private sector investments and create new markets.
“We intend to put these resources to work over the next two years. Importantly, we expect that this USD 4 billion will unlock at least three times that amount in co-finance, resulting in an additional and much needed USD 16 billion worth of investments in the short term,” Duarte said.
According to Duarte, the additional investments will help make countries and communities more resilient to the impacts of climate change, promote energy-food-water security, catalyze private sector investments and create jobs.
She said for contributors, the reform enhanced the impact of every dollar invested and going forward, every US$1 contributed to GCF would now support approximately US$1.30 in new funding to projects in developing countries.
“For beneficiary countries, the Fund said this translates to significantly greater amounts of urgently needed investments, while GCF maintains the concessionality and risk appetite that underpin its transformative impact,” Duarte said.
She stated that the changes took effect from the GCF Board meeting scheduled for October, 2026.
There are currently 12 GCF-supported projects in Zambia, including the ‘Catalyzing a climate risk protection shield for Zambian smallholder farmers’ approved in March 2026, according to the GCF.
The projects being implemented in Zambia reflected the GCF’s continued commitment to be the country’s climate partner of choice.
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