Fiji Development Bank accredited as Direct Access Entity to Green Climate Fund

Fiji
FDB was nominated by the Government of Fiji to become a DAE as part of the Government’s strategy to climate-proof infrastructure developments and boost the resilience of the economy / FDB Photo
 
In a significant achievement for the South Pacific nation of Fiji, the Fiji Development Bank (FDB) was among five new partner organizations which received accreditation as Direct Access Entities to the Green Climate Fund (GCF) in October, bringing the total number of GCF Accredited Entities globally to 59.
 
Direct Access Entities are the means through which the GCF channels its resources to national level climate adaptation and mitigation projects and programmes. Entities can be private or public, non-governmental, sub-national, national, regional or international, and typically support the development of funding proposals and the management and monitoring of projects and programmes.
 
FDB was nominated by the Government of Fiji to become a DAE as part of the Government’s strategy to climate-proof infrastructure developments and boost the resilience of the economy. As the sole Development Financing Institution (DFI) in the country, FDB already provides financing that contributes to the development of the Fijian economy, and its core focus has been developing small and medium businesses in the agriculture and the manufacturing sectors.
 
FDB Board Chairman Robert Lyon welcomed the accreditation approval, which he said opens a direct line of access to GCF financing.
 
“FDB’s new GCF accreditation will grant Fiji better access to the critical financing that is needed to adapt the Fijian economy to climate catastrophes, such as the recent tropical Cyclone Winston, and the resulting projects will allow us to carry the torch of global climate change adaptation to Bonn and beyond,” said Mr Lyon.
 
With the accreditation, FDB will be able to blend GCF funding of up to US$10 million per project with other financing instruments to provide the best and most affordable financing package, while also continuing to deliver on its primary mandate of contributing to the development of the economy’s core focus areas. As a DAE, FDB is also well-positioned to manage financing that will support Fiji’s small and medium businesses and corporations to implement projects that are climate- resilient, ensuring the support goes to the grassroots level.
 
FDB is closely liaising with the Un Environment/UNDP/WRI GCF Readiness Programme to put in place policies on environmental and social safeguards and gender inclusion required by the GCF for all climate investments, ensuring that these important minimum standards will be upheld for all interventions under the FDB.
 
Importantly, direct access to the GCF enables Fiji to take increased ownership in addressing climate change-related capacity-building, adaptation, and mitigation projects, and reduce reliance on externally-driven interventions. The increased autonomy, plus access to funding for critical climate interventions will also provide a boost to the country’s economic growth and for long term economic sustainability. Having a designated DAE in-country will also streamline coordination and allow Fiji to more effectively align national objectives with local initiatives.
 
In a press statement issued by the FDB, Fijian Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum, said that the accreditation had the twofold impact of growing the economy and strengthening national resilience to climate change.
 
“Our Government is constantly looking for innovative ways to grow Fiji’s economy and protect us from the effects of climate change - FDB’s new GCF accreditation helps us simultaneously progress both of those goals. We will continue to work to bring Fijians sustainable prosperity, and by doing so, we hope that Fiji can serve as a success story that other developing nations and climate-vulnerable economies can replicate. With FDB's accreditation, we can further work with our Pacific neighbors to mobilize climate finance within the region,” said Mr. Sayed-Khaiyum.

 

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