The Agricultural Development Bank (ADB) has set its targets getting accredited as a Direct Access Entity (DAE) with the Green Climate Fund (GCF) by the end of the year 2023 to help it secure the funds.
As an accredited entity, ADB will be eligible to manage funding on behalf of GCF, especially at the district and community levels. Kwame Asiedu Attrams, the general manager in charge of agribusiness at the ADB disclosed this to the at a forum on climate change financing for farmers.
Kwame Asiedu Attrams explained that as part of the process, the bank is developing financial products across all sectors that are sensitive and will respond to climate sustainability, disability friendly and gender relevant issues.
Attrams said the acquisition of the accreditation status would enable ADB to develop proposals that will leverage funds from the GCF as well as to manage the funds for projects that are approved by GCF.
When the process is completed, ADB will become the second entity in the country to secure accreditation after Ecobank had it on 17th August 2020.
Dr Antwi Boasiako Amoah, acting director, Climate Vulnerabilities and Adaptation, Environmental Protection Agency (EPA) said the move by the Bank was a positive one because ADB was a national bank with focus and set up. “It now behooves on various sectors both government and non-governmental organisations to put up projects that can win GCF funding for it to be managed by ADB.,” he said.
Dr. Amoah, who also serves on the GCF Board as an Alternate Member for the African region, said it would benefit greatly from the fund if firms leveraged on the accreditation to develop bankable projects.
International Accreditation to Strengthen the ADB’s Status
Foster Gyamfi, an economics officer at the Ministry of Finance, said the international accreditation would strengthen the ADB’s status and credibility.
The GCF is a fund established within the framework of the United Nations Framework Convention on Climate Change as an operating entity of the Financial Mechanism to assist developing countries in climate adaptation and mitigation practices.
In deploying its resources, the Green Climate Fund will work through a wide range of institutions to finance projects and programmes. To access funding, these institutions will go through a process of “accreditation,” designed to assess whether they are capable of strong financial management and of safeguarding funded projects and programmes.
Organisations seen to have specialised capacities in driving climate action may apply to become GCF Accredited Entities. They can be private, public, non-governmental, sub-national, national, regional or international bodies. They should have clear, detailed and actionable climate change projects or programmes to present to GCF progressing mitigation and adaptation. They must also meet GCF standards based on financial standards, environmental and social safeguards, and gender.
Accredited Entities develop funding proposals to be considered by the Fund and oversee, supervise, manage and monitor their respective GCF-approved projects and programmes.
The accreditation process is also designed to assess whether applicant entities have the ability to manage GCF’s resources in line with the Fund’s fiduciary standards for the scale and type of funding sought, as well as the ability to manage environmental and social risks that may arise at the project level. Entities seeking accreditation to access GCF resources will also be assessed against the Fund’s Gender Policy, as well as other GCF policies and standards.