The Bank of the Cook Islands (BCI) has announced its formal accreditation as a Direct Access Entity by the Green Climate Fund (GCF).
This accreditation highlights BCI’s alignment with GCF’s stringent fiduciary standards, positioning the bank as a key player in climate finance initiatives.
The Cook Islands News reports that the GCF plays a crucial role in financing climate resilience projects for vulnerable countries like the Cook Islands.
This accreditation empowers BCI to directly access climate finance and channel it towards impactful projects across the Cook Islands, fostering sustainable development and climate resilience.
Jennifer Henry, chief executive officer of BCI, said the accreditation marks the end of the beginning on BCI’s journey in climate finance.
“BCI is now a direct access accredited entity with the Green Climate Fund (GCF) for project management and on-lending and blending for loans,” says Henry.
“It’s pretty exciting for the Pacific, we are the first in Polynesia with GCF accreditation for on-lending, we are excited to join our other bank counterparts who are accredited for on-lending with the GFC in Melanesia and Micronesia.
“For BCI to be the first in Polynesia with this on-lending accreditation with the GFC is a pretty big milestone for the Cook Islands.”
Henry explained what this means for BCI, and what they can do for our people.
“As the people’s bank we are here to bring about modalities of finance, our accreditation to the GFC ultimately is to be able to access their resources to pass on concessional lending.”
To pass it on at concessional rates, in regard to national projects with regards to solar or renewable energy, or electric vehicles and transportation, climate smart agriculture, regenerative tourism, coastal adaptation and protection just to name a few.
“This means that through this access accreditation BCI can bring to the GCF, projects that meaningfully engage and uplift and bring about climate investment in the private sector.
“This is part of the strategic plan of the BCI to have a meaningful national presence and ability to mobilise finance in this climate space.”
Henry said for years the private sector have been undertaking their own forms of mitigation against the impact of climate change with retaining walls and coastal protection and the high prices paid for cyclone insurance and premiums and so forth with the traditional form of finance.
“So, this is an exciting step to be able to have ticked the first box which is accreditation… now that we have that the next step is national projects so that we can access the GCF finance to be able to bring about climate facilities and the concessional rates that come with it.”
Henry expressed that it is important to recognise that this accreditation is the first step in this journey with the Green Climate Fund.
These are national projects, not for individual projects.
The Cook Islands is in the micro category that has total projects up to US$10 million.