Green Climate Fund expands its reach with first regional offices

The Green Climate Fund’s board has approved a plan to establish regional offices worldwide, marking a significant shift in how the world’s largest climate fund operates. Headquartered in Songdo, South Korea, GCF has no physical presence outside of its main office, despite its global mandate to finance climate action in lower-income countries. GCF was first proposed at the 2009 United Nations’ COP15 climate summit in Copenhagen, Denmark, and formally established a year later in Cancún, Mexico. Tasked with helping developing nations curb emissions and adapt to climate change, the fund has grown into a key player in global climate finance — though it has also faced persistent criticism for bureaucratic delays in disbursing funds. For 2025, it has an administrative budget of around $110.5 million and a programming target of $2.3 billion to $2.5 billion. The decision to expand regionally, approved at last month’s board meetings, aligns with a broader push in the development sector to decentralize decision-making and shift power closer to the communities it serves. It also responds to long-standing frustrations from local organizations that have argued that the fund’s slow and complex processes have made it difficult for them to access much-needed climate finance. “If climate action is local action — which it is — then the Green Climate Fund needs to be local too … I’m pleased that the Fund has taken a historic step in establishing a presence in key regions, bringing our world-class specialists closer to those who will benefit most from their support,” GCF Executive Director Mafalda Duarte said in a statement. At the same meeting, the board also approved $686.8 million in new GCF investments — bringing the total to $1.5 billion with co-financing — for 11 projects across 42 countries. Among the newly approved projects are first-time investments in Serbia, aimed at enhancing forest resilience, and in Togo, where efforts will focus on strengthening climate resilience for vulnerable communities. GCF’s growing pains The push for regional offices follows years of frustration from governments and local organizations struggling to access funding. The fund’s own internal reviews have acknowledged persistent bottlenecks: Operational challenges including accreditation backlogs, inefficient processes, delayed project implementation, insufficient impact tracking, and weak cross-cutting engagement, according to board documents. The rollout of regional offices is expected to help address some of these issues by bringing decision-making closer to the countries GCF serves. The new offices are also meant to improve engagement with smaller local organizations and private sector partners, which have struggled to access GCF funding. GCF declined to comment on the timeline for the rollout. The fund currently has over 300 personnel in its South Korea headquarters. According to the guiding proposal document, one possible configuration could see GCF establish three regional offices and one regional outpost. In Africa, a regional office could be set up, with 26 out of 28 staff members relocating to the region. A similar approach could be taken in Eastern Europe, Central Asia, and the Middle East, where 13 out of 15 staff members would move. Latin America and the Caribbean could also receive a regional office, with 22 out of 24 staff members relocating. In the Pacific, GCF could establish a smaller regional outpost, with three or four out of five staff members relocating to the subregion. The specifics of the configuration are set to be finalized later this year. The move has broad support within the organization. According to the same board documents, a staff survey found that 79% of respondents believe a regional presence would enhance GCF’s ability to serve countries and meet its targets — which range from supporting countries in implementing their national climate plans; to providing farmers with adaptation financing; to supporting the development of low-emission, climate-resilient infrastructure. Additionally, the board’s analysis suggests that establishing regional offices would be either cost-saving, cost-neutral or only marginally more expensive. “This decision strengthens our ability to deliver on the more than USD 680 million in new climate action commitments announced at this Board meeting, pushing our total portfolio towards USD 17 billion across 133 countries,” Duarte said. GCF’s reform agenda Duarte assumed the role of executive director in August 2023, inheriting an institution shaken by controversy. In the years prior, GCF faced allegations of harassment and sexism, as well as criticisms over the inadequate vetting of projects. Soon after taking office, Duarte introduced a series of reforms aimed at improving efficiency, including plans to streamline project approvals, restructure the organization, and scale up operations to manage $50 billion by 2030 But those efforts have hit a new challenge. Last month, the Trump administration announced it would renege on $4 billion in pledged funding to GCF. The organization did not respond to requests for comment on the impact of these funds disappearing. Duarte responded to the funding cut on LinkedIn, writing, “When nations step back, others step in. Leadership vacuums rarely last long.” Update, March 14, 2025: This article was updated to reflect that the specific details of the regional configuration are yet to be finalized.