© GGGI. Lead farmer in the home garden as part of the Swedish-funded Conservation and Sustainable Management of Forested Landscape (CSMFL) project. Ethiopia, 2024.
This section outlines GGGI’s 2023 performance against its Updated Corporate Results Framework’s Intermediate Outcomes (IOs) and output indicators delivered across 11 programmatic solutions. Much like the previous year, GGGI exceeded most of its 2023 targets. GGGI’s 2022 and 2023 projects’ expenditure across its Programmatic Solutions (PS) provide a picture of GGGI’s funding for these thematic priorities. Core areas include Green Investments (PS1) and Climate Action (PS2), both mandatory for all projects, with expenditure growing evenly between the two years (Figures 1 and 2). In 2023, GGGI’s expenditure by PS focused on Climate Resilient Agriculture (PS3), Circular Economy and Sustainable Waste Management (PS6), Sustainable Forests (PS4), and Carbon Pricing (PS11), influenced by larger projects in countries like the Philippines, Uzbekistan, Lao PDR, Rwanda, Uganda, Colombia, Indonesia, and Ethiopia. Additionally, GGGI’s carbon pricing work expanded rapidly in 2023, including the launch of new projects such as the International Climate Initiative (IKI) – funded SPAR6C project.
GGGI has largely surpassed its 2023 green investment commitments mobilization target (USD 1 billion), securing USD 1.9 billion commitments in 2023, and bringing the cumulative total of green investment commitments mobilized since 2015 to over USD 10 billion. GGGI’s green investment results growth remains robust each year, driven by sustainable finance instruments including sustainable bonds, loans, and debt restructuring. Innovation is key and a driver of impactful results. GGGI works alongside its Member States and Partners to catalyze investment commitments from both public and private sectors towards green growth initiatives. GGGI accomplishes this by enhancing the technical, social, commercial, and financial viability and impact of green growth projects.
The mobilization of finance for climate adaptation is also visible in 2023 results through a surge in investment projects addressing both mitigation and adaptation, including efforts to bolster community and infrastructure resilience. These include the Infrastructure Climate Resilient Fund (ICRF) funded by Green Climate Fund (GCF), several forestry focused projects in Indonesia and Colombia, access to resilient energy supply for communities in the Pacific, Latin America, and the Caribbean (LAC), and several climate smart agriculture investment projects across all regions.
Innovative projects top both the infrastructure project category which includes GGGI’s first Geothermal project in Indonesia, the world’s largest Debt for Nature Swap in Ecuador, and first green resilience bond in Mexico. The replication of past years’ successful projects on e-mobility, green bonds drive results forward.
At the end of 2023, GGGI maintained a robust pipeline of green investments valued at over USD 5.6 billion (probability-weighted value) (refer to Figure 3), with an average project size of USD 52 million. It consisted of 107 potential investment deals. GGGI’s pipeline for the next years, at the end of 2023, shows a focus on sustainable finance and infrastructure, with Latin America and the Caribbean region and Asia making up the largest share of the pipeline, and an increasing emphasis on Sustainable Energy, Climate Resilient Agriculture, and Circular Economy initiatives.
© GGGI. Solar PV installed on the roof of project participant’s home as part of the Conservation and Sustainable Management of Forested Landscape (CSMFL). Ethiopia, 2024.
Figure 3: Probability Weighted Green investment pipeline breakdown by region (USD M, 2024-2026)
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GGGI’s green investment pipeline is nourished by its preparatory work on investment proposals and projects. In pursuit of this objective, GGGI delivered 120 advisory outputs that informed decisions on green growth investments in 2023. GGGI’s primary aim is to advance projects towards the financing stage, offering guidance such as technical assessments and analyses, pre/feasibility studies, investment plans and frameworks, and technical reports. A notable development is GGGI’s green bonds and sustainable finance related assistance, in LAC and Asia regions.
In 2023, GGGI sought to innovate and promote the use of Trust Funds for project preparation and large-scale mobilization of investment as part of its program portfolio.
GGGI’s green investment pipeline is nourished by its preparatory work on investment proposals and projects. In pursuit of this objective, GGGI delivered 120 advisory outputs that informed decisions on green growth investments in 2023. GGGI’s primary aim is to advance projects towards the financing stage, offering guidance such as technical assessments and analyses, pre/feasibility studies, investment plans and frameworks, and technical reports. A notable development is GGGI’s green bonds and sustainable finance related assistance, in LAC and Asia regions.
In 2023, GGGI sought to innovate and promote the use of Trust Funds for project preparation and large-scale mobilization of investment as part of its program portfolio.
The Korea Green New Deal Trust Fund (KGNDF) is a partnership between the Global Green Growth Institute (GGGI) and the Republic of Korea (ROK), established in 2022 to support GGGI and its Member States to operationalize inclusive green growth projects, strategies, and investments. Now in its second year of operation, with 38 projects in total, the fund has started delivering significant results. In 2023, four projects supported via the KGNDF reached investment commitment stage for a total amount of USD 552 million. KGNDF is funded by the RoK Ministry of Economy and Finance with USD 4.6 million yearly for 5 years.
The Carbon Transaction Facility (CTF), approved by GGGI’s Assembly and Council in October 2022 and programmed for launch in 2024, is GGGI’s innovative approach to scale up international carbon trading, under Article 6 of the Paris Agreement. The CTF aims to facilitate generation and trading of Internationally Transferred Mitigation Outcomes (ITMOs) through a series of readiness activities managed under a single multi-donor facility, and by establishing carbon trust funds for ITMO purchase. Its overarching goal is to uphold rigorous standards for carbon transactions, while empowering participating countries by creating an equitable playing field for buyers and sellers. By 2027, the CTF aims to mobilize USD 500 million under the carbon trust funds.
The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Republic of Korea (ROK) Cooperation Fund (BKCF) was established in 2021 by the ROK. It aims to promote inclusive and balanced growth in the Southeast Asia region and ASEAN connectivity by strengthening the partnership between the BIMP-EAGA and the ROK. GGGI has been designated as a depositary of the BKCF.
In 2018, Jovie Gil Montajes left a high-paying corporate job to become a social entrepreneur, driven to address the lack of affordable electricity in remote Cebu communities. He developed the portable Cloudgrid solar kit which could provide clean energy to households. Jovie named his enterprise “Light of Hope PH” because, as he says, “the light source improves residents’ living conditions and allow them to hope for a better future.” Jovie won the GGGI Greenpreneurs competition as well as securing funding of USD 300,000 from the BIMP-EAGA (Brunei Darussalam Indonesia Malaysia Philippines East ASEAN Growth Area) – Republic of Korea Cooperation Fund (BKCF) managed by GGGI. His project is set to expand and positively impact 1,000 families in Surigao del Norte Province’s Island communities frequently hit by disasters
© GGGI. Greenpreneur’s Light of Hope in Philippines selected as Winner for BKCF. Philippines, 2023
GREEN INVESTMENT COMMITMENTS REALIZED
Each year, GGGI follows up on green investment commitments reported in past years. Several projects are advancing and delivering impact, as demonstrated by selected examples below.
In 2022, the EU-Switch Garment project delivered USD 1.7 million worth of investment commitments in solar PV rooftops, financed by the factories themselves. Two factories, “PPSEC” and “Can Sports” contributed USD 810,000 and USD 900,000, respectively. While CAN Sport’s investment was fully utilized for installation, PPSEC spent USD 540,000 on a 771kWp system and plans to invest an additional USD 270,000 for a future 380kWp system, continuing the project’s momentum and commitment to sustainable energy solution post-GGGI’s involvement.
In 2022, the EU-Switch Garment project delivered USD 1.7 million worth of investment commitments in solar PV rooftops, financed by the factories themselves. Two factories, “PPSEC” and “Can Sports” contributed USD 810,000 and USD 900,000, respectively. While CAN Sport’s investment was fully utilized for installation, PPSEC spent USD 540,000 on a 771kWp system and plans to invest an additional USD 270,000 for a future 380kWp system, continuing the project’s momentum and commitment to sustainable energy solution post-GGGI’s involvement.
The Pacific NDC Hub is well established and has been operational since 2019. This funding has been disbursed and the project completed. For example, the NDC Hub supported the construction of two biogas facilities in schools in Vanuatu.
In collaboration with Rwandan and Italian Ministries of Environment, GGGI aided Rwanda Environmental Management Authority in transforming Nyandungu wetland into an eco-tourism park. Providing technical advice and securing USD 1 million in funding, GGGI facilitated capacity building. The 121 hectares wetland eco-park opened in 2022, garnered global recognition through the ‘Wetland City Accreditation Award’ given to Kigali, and leading to expanded restoration efforts in the city.
Funding of USD 400,000 by KOICA in 2022, along with the support from the Government of Grand Duchy of Luxembourg and the Government of Vanuatu since 2017, has enabled Phase 3 of the Vanuatu National Green Energy Fund implementation in 2023, including the installations in 121 Solar PV systems in 40 primary schools, 22 cooperatives, 19 secondary schools, 10 area councils, 28 vulnerable households, two tourism operators, four solar water pumps for four schools.
GGGI supports Member and Partner States in developing green growth policies across various levels of governance. This entails formal decisions by governments aimed at advancing green growth initiatives, such as the formulation of national, sub-national, sectoral, or local government strategies, plans, or policies; modifications to existing laws or administrative regulations; and the establishment of new or enhanced institutional frameworks.
GREEN GROWTH POLICIES ADOPTED IN 2023
GGGI supports policies that deliver transformational impact, meaning that they catalyze deep and enduring changes across various sectors, from energy to agriculture, transportation, and beyond. These policies are designed to address pressing environmental challenges while simultaneously fostering economic growth, social equity, and resilience. In 2023, GGGI facilitated the adoption of 51 green growth policies Annex 4 in 14 countries, surpassing its yearly KPI of 30.
GGGI also delivered 219 advisory outputs (listed in Annex 3) that informed the development of green growth policies, against a 2023 target of 100. These advisory outputs help shape the design of policies at national, sub-national and sectoral levels. Once the will have a direct impact on decisions and actions of Member and Partner States to advance their green growth agenda and related goals.
In 2023, GGGI conducted 650 capacity building activities, benefiting over 54,000 participants in Member and Partner States. There was a significant increase in the number of participants per activity compared to 2022 (35,269), attributed to the rise in projects and the rapid expansion of GGGI’s work.
Capacity building activities encompassed a range of initiatives and covered various topics aligned with the key outcomes targeted by projects.
GGGI places great emphasis on generating knowledge that can influence national and international discussions on green growth. In line with this goal, GGGI country teams and global teams produced and delivered 257 knowledge products, including flagship publications, reports, training materials, databases and knowledge repositories, software and tools, best practice guidelines, and case studies.
© GGGI. SPAR6C: Supporting Preparedness for Article 6 Cooperation
This year marked the successful delivery of the German-funded SPAR6C Program by GGGI’s Carbon Pricing Unit in collaboration with government stakeholders in four partner countries: Colombia, Pakistan, Thailand, and Zambia. With its global expertise, SPAR6C’s first full year of implementation was full of both strategic and technical successes. The program’s support for establishing comprehensive carbon market frameworks, notably the framework launched in Zambia in October, and the drafting of an Article 6 decree in Colombia, reflects a focused effort to provide a strong enabling environment for private sector investment in emissions reduction projects. By creating clear rules and instructions on Article 6 decision making, these frameworks help build the confidence needed to unlock investment, meeting GGGI’s objectives of catalyzing carbon market activity.
Additionally, the launch of the SPAR6C Research Mentorship Program was a success, receiving 77 applications. From this, the program then selected eight Master’s degree students to engage in independent research and produce a series of papers on Article 6 implementation. Looking ahead, SPAR6C is set to expand this initiative, aiming to involve 16 students per year over the next two years to build long-term, local expertise in its partner countries.
The launch of the initial set of toolbox guides at COP28 represented a further strategic effort to enhance global understanding and implementation of Article 6. The first set of three guides, available online at www.spar6c.org, serves as a foundational resource for government and private sector stakeholders, offering practical insights into preparing projects and making informed strategic decisions.
GGGI’s Climate Action and Inclusive Development (CAID) unit leads the mainstreaming of Gender Equality and Social Inclusion (GESI) in GGGI’s work. This is guided by the 2021-2025 GGGI Gender and Social Inclusion Strategy and the accompanying biennial GESI Action Plan. The 2023-2024 GESI Action Plan was launched in 2023 with five intended outcomes. The project level Gender and Poverty Markers were introduced in 2019 to generate a high-level overview of the 1) proportion of GGGI’s projects that go towards achieving gender equality, women’s empowerment, and/or poverty reduction; 2) regional portfolios and programmatic solutions in which gender equality and poverty reduction are prioritized; and 3) investments in which gender equality and poverty reduction are supported and/or prioritized.
In 2023, 84% of new projects delivered intended gender equality results and 70% of new projects addressed poverty reduction and inclusiveness. Representing significant improvement in gender from 2022, which reported 70%, and a stagnating score for poverty, which remained at 70%. CAID/GESI COP conducted advocacy and capacity building activities to enhance the implementation of the gender and poverty markers system. The activities contributed to improvement in GGGI’s results reporting on gender equality, but more targeted efforts will be needed to enhance poverty marker results.
GGGI recognizes the importance of leveraging partnerships for achieving gender and social inclusion goals. This was demonstrated in 2023 through the launch of the “Powering a Just Energy Transition” report which was a collaboration under the Green Growth Knowledge Partnership Gender Expert Group. GGGI in partnership with UN Women developed a “Step-By-Step Methodology to Integrating Gender in Long-Term Low Emissions Development Strategies (LT-LEDS)” based in the Case of Burkina Faso.
© GGGI. Global Green Growth Week 2023 Youth Forum Group Photo. Seoul, Korea, 2023.