Credit Agricole has become the third private bank to secure permission to propose projects to the United Nations’ Green Climate Fund (GCF).
The South Korea-based Green Climate Fund is a fund within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries address counter climate change. It aims to mobilise $100 billion of climate finance annually by the end of the decade. It aims to use its own, publicly funded investments to leverage private-sector finance.
The French bank has spent almost a year being assessed to ensure its internal procedures are in line with the GCF’s guidelines on issues such as risk management and environmental, social and governance standards. It has now been accredited to work with the $9.9 billion fund.
This means that, along with Deutsche Bank, HSBC and almost 30 other commercial and non–commercial institutions,Credit Agricole can approach the GCF with recommendations for climate change mitigation and adaptation projects in developing markets.
For example, eligible projects being developed by clients of Credit Agricole could be recommended to the GCF to receive investment. This could be made in a range of ways, including equity investment, debt financing or guarantees.
Accreditations also allow entities to put forward investor-focused proposals, such as credit enhancements to strengthen the risk profile of emerging-market investment opportunities.
The GCF has received pledges of $10.3 billion from governments around the world to date, although only $9.9 billion has currently been signed off. It seeks to use the money to support climate adaptation and mitigation projects in emerging markets.
The accreditation process is reviewed every five years.