Climate Change
Sumitomo Mitsui Banking Corporation (SMBC) accredited to Green Climate Fund (GCF)
July 2, 2021
- Sumitomo Mitsui Banking Corporation (SMBC) was approved as accredited entity of the Green Climate Fund (GCF) at the 29th Board meeting held between June 28 and July 1 in a virtual format.
- This allows SMBC to access the GCF resources and submit funding proposals addressing climate change in developing countries. Through SMBC’s activities with the GCF resources, it is expected that knowledge and expertise of the Japanese private sector will be utilized in origination and implementation of GCF projects and assistance.
- Climate Change is an imminent challenge which the entire international community should tackle with. Japan has supported GCF activities for promoting steady implementation of the Paris Agreement by developing countries, with its contribution to the Fund amounting maximum USD 3 billion. Japan welcomes that SMBC will play an important role as GCF’s accredited entity in supporting developing countries’ implementation of the Paris Agreement and will continue to work closely with GCF.
- Green Climate Fund (GCF) is a multilateral fund for supporting reduction of greenhouse gases emission (mitigation) and addressing impact of climate change (adaption) in developing countries. It was set up as part of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). Japan announced that it would make contributions of up to 3 billion US dollars to the GCF. Japan actively contributes to the management of the GCF through its Board, the decision-making body, where Japan occupies a seat of board member as a single-country constituency.
- Accredited entities are national and sub-national institutions, and international, regional and private organizations which can access to GCF’s resources, submit funding proposals and implement them. Any institution/organization in public and private sectors can apply for a status of accredited entity. They are categorized on the basis of the entities as follows: Direct Access Entity (national and sub-national institutions, and regional organizations) and International Access Entity (international, regional and private organizations).
- All entities are required to follow code of conducts such as fiduciary standards, environmental and social standards, and gender policy of GCF and need approval by the GCF Board in order to obtain accreditation.
- 103 entities has been approved as accredited entity of GCF so far, including Japan International Cooperation Agency (JICA) and MUFG Bank.