GCF announces over $100m investment to accelerate climate action in Somalia

18 / 03 / 2024

By Marwa Nassar - -

The Green Climate Fund’s (GCF) Executive Director, Mafalda Duarte headed the first-ever GCF delegation to Somalia, announced an accelerated program of climate action investment – anticipated at $100 million over the next year.

Duarte released her 50by30 vision at the UN Climate Action Summit in September 2023, announcing intentions to build a fund capable of impactfully and efficiently managing $ 50 billion by 2030 – with a clear focus on helping the most vulnerable countries and communities.

Acknowledging the vision provided by the Government of Somalia, GCF is ready to commit to a strategy of investments and readiness support of over $ 100 million to Somalia by mid-2025, as well as a long-term commitment to empower Somalia to develop country-priority projects and subsequent investments.

During a series of meetings with President Hassan Sheikh, the Honorable Prime Minister Hamza Barre, the Minister of Environment and Climate Change, Khadija Mohamed Al-Makhzoumi, Cabinet ministers, the private sector and civil society, Duarte unveiled an investment pipeline, including GCF-Acumen “Hardest-to-Reach” project will provide affordable, reliable off-grid energy access to unelectrified populations in Sub-Saharan Africa. The program prioritises capital investment and technical assistance support in Somalia, accelerating disbursements of over $ 3 million for 2024-2025, with funding from GCF and other funders catalyzed by GCF’s funding.

He also highlighted accelerated funding disbursements from the approved portfolio and immediate pipeline to hit-the-ground in the short term (2024 and early 2025), including climate-smart agriculture, resilience, and food security building projects of an estimated $ 110 million value, subject to GCF Board approval.

He added that the investments include exploring piloting access by Somali institutions to readiness (capacity building) resources, to develop further institutional capacity, strengthen coordination mechanisms, and identify and prepare national institutions that could access GCF resources directly in the long term.

He noted that recognizing the need for the Government of Somalia to coordinate climate finance and develop robust concept notes for GCF investment – GCF also undertook to explore direct readiness support of up to $ 7 million to further capacitate the Ministry of Environment and Climate Change in its technical and coordination role.

Green Climate Fund Executive Director, Mafalda Duarte said “Somalia is the second most vulnerable country to climate change in the world, despite contributing only 0.03 percent of total global greenhouse gas emissions. The interlinked impact of climate change and lack of security has had a devastating effect on people, causing some 43,000 excess deaths in 2022 due to drought, displacing more than six million people, pushing Somalis away from their homes into overcrowded towns and cities. Recurrent drought and regular flooding leads to failed crops, loss of livestock and the country’s chronic food insecurity problems. GCF is committed to working with the Government of Somalia and its partners to better address the extreme vulnerability the country and its population face.”

Somalia has achieved significant progress in recent years, especially in establishing political institutions, robust public financial management systems and improving security.

Duarte acknowledged the maturing of Somalia’s institutional environment, commenting that climate finance modalities now need to respond: “GCF is committed to supporting the government with what it needs, so that together with the flourishing private sector and civil society organizations it can develop priority projects and investments to deliver sustainable, integrated and impactful climate action for durable peace and prosperity.”