Korea-based Green Climate Fund helps developing countries access direct finance

Olena Borysova, a principal in the Green Climate Fund's investment services department, delivers a lecture for Royal Asiatic Society Korea, Feb. 24. Courtesy of Bereket Alemayehu

Korea’s role as host of the Green Climate Fund is drawing greater attention to how developing countries can access climate finance, particularly through mechanisms designed to bypass traditional intermediaries.

Insights from a recent lecture in Seoul highlighted how the institution is expanding direct access to funding, allowing national entities to take greater control over climate projects.

“Our goal is not just to fund projects but to help build systems where countries can mobilize climate finance independently,” Olena Borysova, a principal in the GCF’s investment services department, said Feb. 24 during a lecture for Royal Asiatic Society (RAS) Korea.

“Our global economy has long been built on burning carbon. The challenge now is how quickly we can transition to systems that are sustainable, resilient and climate-friendly.”

To address this need, GCF was established as a key mechanism under the Paris Agreement, working with governments and financial institutions to fund climate projects in developing countries.

“Whether climate change is anthropogenic or not, we are already facing the consequences,” Borysova said. “The question today is no longer whether it exists, but what we do about it.”

She emphasized that the real challenge is responding to the impact of climate change, which is not limited to rising temperatures but includes broader disruptions to ecosystems and weather patterns, including floods, droughts, stronger storms and shifting agricultural conditions, greatly affecting developing countries.

“Essentially, (the cause of climate change) doesn’t matter, because we are facing a harsh reality,” she said. “We are facing changes in land use. We are facing changes in air quality.”

A central theme of the lecture was the impact of direct access to climate funding on mitigation and adaptation. Rather than relying solely on international intermediaries, GCF supports national institutions worldwide, so they can manage climate projects themselves. Strengthening institutional capacity, governance systems and project design capabilities enables countries to take greater ownership of their climate strategies.

By providing the headquarters, infrastructure and diplomatic support through GCF, South Korea has helped establish a global hub where climate experts, policymakers and financial institutions collaborate on climate solutions.

Founded in 2015, the fund has grown into one of the world’s largest climate financing institutions. According to Borysova, the organization has committed nearly $20 billion to climate projects over the past decade, helping mobilize almost $80 billion in total investments when cofinancing is included. Reflecting the global nature of the climate challenge, the fund operates through a governing board consisting of 24 members, divided equally between developed and developing countries.

“This structure ensures that the voices of developing countries, which are often most affected by climate change, remain central to decision-making,” she said. “In addition, a host country can play a unique role in accelerating global climate solutions.”

International efforts to address the climate crisis have largely been coordinated through the Paris Agreement, adopted under the United Nations framework. The agreement mobilizes countries to limit global warming while helping vulnerable nations adapt to its effects. During preparations for the agreement, economists and scientists estimated that roughly $100 billion per year would be needed globally to prevent the most severe climate impacts.

However, Borysova said, raising funds is only part of the challenge. “The next question is how to invest that money effectively,” she said. “Should we focus on energy systems, agriculture, infrastructure or ecosystem protection? These decisions require strong climate rationale and coordinated global management.”

She outlined the two major streams of climate action supported by the fund: mitigation and adaptation. Mitigation focuses on reducing greenhouse gas emissions, such as by supporting renewable energy projects or improving energy efficiency. Adaptation addresses the impacts already being felt — for example, strengthening agricultural resilience, improving flood defenses or managing water resources.

Under its mandate, the GCF aims to maintain a 50-50 balance between mitigation and adaptation investments, a goal that often requires careful negotiation and policy debate. “Deciding where to invest is never simple,” she said. “Do you reduce emissions through energy projects, or do you help farmers immediately adapt to changing climate conditions? These are difficult but necessary choices.”

She stressed that while developing countries are suffering from climate impacts, the developed world should resolve climate change issues by changing its business patterns. “Our mandate is to support the change of business patterns all over the world so that public and private sector business become more climate-friendly,” she said. “And this is a super challenging task.”

Looking ahead, the fund aims to mobilize $50 billion by 2030 to expand climate investments and support large-scale transformation in global energy and development systems.

When asked about the U.S. government’s recent flip-flop on climate change policy, Borysova acknowledged the country’s role and the impact of its withdrawal from both the Paris Agreement and the board of GCF, which she said is “of course, not a public good.”

However, she pointed out, “The last time we raised money, we didn’t receive any contributions from the U.S., but our other contributors stepped up, and our replenishment was successful. We truly believe that because what we do is innovative and important, this replenishment cycle will also be successful.”

Borysova concluded the lecture by encouraging participants to explore the evolving architecture of global climate finance and the role that partnerships, innovation and policy leadership will play in shaping future climate action.

Visit greenclimate.fund for more information.

Bereket Alemayehu is an Ethiopian photo artist, social activist and writer based in Seoul. He’s also the co-founder of Hanokers, a refugee-led social initiative, and a freelance contributor for Pressenza Press Agency.