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THE GREEN CLIMATE FUND directly with both the public and private sectors. Direct
engagement with the private sector is facilitated through
the Fund’s Private Sector Facility (PSF)(GCF, 2017). An
The Green Climate Fund (GCF) is perhaps the most well- important part of its innovative framework, is the capacity
known source of climate financing available for investing to bear significant climate-related risk, allowing it to
in low-emission and climate-resilient development. This leverage and crowd in additional financing. It offers a wide
unique global financing platform was established in 2010 range of financial products including grants, concessional
to limit or reduce greenhouse gas emissions in developing loans, subordinated debt, equity, and guarantees. This
countries, and to help vulnerable societies adapt to the enables it to match project needs and adapt to specific
unavoidable impacts of climate change. The GCF is investment contexts, including using its funding to
actually part of the UNFCCC’s financial mechanism that overcome market barriers for private finance.
aims to deliver equal amounts of funding to mitigation
and adaptation, while being guided by the Convention’s The Caribbean Development Bank has been successful in
principles and provisions. Funding for the GCF is provided obtaining funding from the GCF to support renewable energy
mainly by the developed countries although there are also and in particular geothermal energy. The Banks’s
contributions some developing countries and regions. Sustainable Energy Facility for the Eastern Caribbean
(SEF-Expanded) is designed to reduce the financial,
The initial resource mobilization for the GCF which began in technical, and institutional barriers to geothermal energy
2014 obtained pledges worth USD 10.3 billion. By 2017, development in five Eastern Caribbean nations. The
the Fund had made significant progress with 19 projects SEF-Expanded programme of the CDB, a mixed loan and
under implementation by the end of the year, totalling an grant package, has obtained US$ 60 million from the Green
estimated USD 633 million in GCF resources( GCF, 2019). Climate Fund (GCF) for a 20 year term (Richter 2018). This
The GCF has a paid particular attention to the needs of the financing is administered with a 5.5 year grace period and a
Least Developed Countries (LDCs), Small Island Developing concessional based interest rate to develop geothermal
States (SIDS), and African States who are amongst the plants and transmission lines. The CDB has also obtained
most vulnerable to the impacts of climate change. Within US$ 4 million from the GCF in grants to fund capacity
the Caribbean, there are three accredited institutions to the building for geothermal analysis, environmental and social
GFC, the Caribbean Community Climate Change Centre safeguards, and additional support for the CDB. These funds
and Antigua and Barbuda. A unique advantage of the GCF are being used to support the energy transition in the
is its ability to unlock private finance as it can engage Eastern Caribbean and lessen its dependence on fossil fuels.

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