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Ecobank Ghana has been accredited by the Green Climate Fund (GCF), paving way for the institution to receive funds from the GCF for on-lending to beneficiary institutions involved in climate change projects in Ghana.
The financial capacity of the accreditation enables the bank to finance projects up to US$250million.
A statement from the bank said, in consultation with the Ministry of Finance, it had so far developed the Accelerating Solar Action Programme (ASAP), as the first project to be submitted to the GCF for funding.
The ASAP aims at mobilizing concessionary finance to promote the use of solar PV systems in Ghana, with a clear focus on SMEs and households.
The Green Climate Fund (GCF) is a global fund created to support efforts of developing countries to respond to the challenges of climate change and to help limit or reduce their greenhouse gas (GHG) emissions.
It seeks to promote a paradigm shift to low-emission and climate-resilient development, considering the needs of nations that are particularly vulnerable to climate change impacts.
The fund was set up in 2010 by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC), as part of the Convention’s financial mechanisms.
GCF recognizes the need to ensure that developing country partners exercise ownership of climate change funding and integrate it within their own national action plans.
The National Designated Authority (NDA) of beneficiary countries acts as the interface between their government and GCF and must approve all GCF project activities within the country.
Ecobank’s accreditation follows a unanimous Board approval of the recommendations of the fund’s Panel of Experts on Accreditation, making the bank the first entity in Ghana and the first Commercial Bank in Sub-Saharan Africa to be accredited to the fund.
The GCF Panel’s reviewed Ecobank’s processes, procedures and compliance with the fiduciary standards of the GCF, positioning Ecobank Ghana as a thought leader in the wider climate action community and at the forefront of environmental initiatives and solutions.
This accreditation also confirms that Ecobank Ghana duly met the fiduciary principles and standards, environmental and social safeguards, and gender procedure, as provided in the operational policies and guidelines of the GCF Board for accessing resources from the Fund.
The country-driven approach ensures GCF’s activities operate in agreement with national priorities.
As an Accredited Entity, Ecobank Ghana is accountable to the GCF Board for all resources received from the fund for programmes and projects.