Consideration of funding proposals – Addendum IX Funding proposal package for FP026

The 'Sustainable Landscapes in Eastern Madagascar' project is a cross-cutting mitigation and adaptation initiative requesting US$53.5 million from the Green Climate Fund. It employs a three-pronged financial approach: a US$15.3 million grant for public sector capacity building and sustainable agriculture, a US$35 million equity investment in a US$50.5 million private sector Investment Fund managed by Althelia, and a US$3.2 million grant to establish a national Climate Change Trust Fund. The project targets the Ankeniheny-Zahamena (CAZ) and Ambositra-Vondrozo (COFAV) forest corridors, aiming to reduce 10 MtCO2eq of emissions, provide 33 MW of renewable energy capacity, and benefit 562,000 direct beneficiaries. Key innovations include the use of a first-of-its-kind EIB Green/Climate Bond to mobilize private capital for a least developed country.

• The project aims to achieve a total reduction of 10 million tonnes of carbon dioxide equivalent (MtCO2eq) over its lifetime, with an annual reduction target of 1 MtCO2eq.
• The project targets 562,000 direct beneficiaries, consisting of 114,000 people with improved resilience and 448,000 people with access to low-emissions energy, alongside 1 million indirect beneficiaries.
• The project will provide 33 MW of renewable energy generation capacity to improve energy access in rural Madagascar.
• The total requested funding from the Green Climate Fund is US$53.5 million, comprising a US$15.3 million grant for public sector activities, a US$3.2 million grant for a national Climate Change Trust Fund, and US$35 million in equity for a private sector Investment Fund.
• The project utilizes a first-of-its-kind financial mechanism where the European Investment Bank (EIB) will issue a US$300 million Green/Climate Bond, with US$10 million of the forgone coupon used to invest in the Madagascar Investment Fund.
• The private sector Investment Fund, with a target size of US$50.5 million, will focus 50% of its allocation on sustainable agriculture and 50% on access to energy, primarily using Profit Participation Loans (PPL) with nominal interest rates of 4% to 6%.
• The project focuses on the Ankeniheny-Zahamena (CAZ) and Ambositra-Vondrozo (COFAV) forest corridors, protecting 655,832 hectares of native forests to reduce emissions from deforestation.
• A national Climate Change Trust Fund will be established with US$3.2 million in seed funding to ensure the long-term financial sustainability of adaptation and mitigation measures in Madagascar.
• The project's estimated cost per tonne of CO2 equivalent is US$5.68 based on total project financing, while the GCF-specific cost is US$4.07 per tCO2eq.
• The project is classified as Environmental and Social risk Category B, with potential negative impacts including watercourse pollution from fertilizers and pesticides, and conflicts over land or water.

APA

Green Climate Fund (2016). Consideration of funding proposals – Addendum IX Funding proposal package for FP026. https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add09.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum IX Funding proposal package for FP026. 2016. https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add09.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum IX Funding proposal package for FP026 |date=27 September 2016 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add09.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2016consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum IX Funding proposal package for FP026}}, institution = {Green Climate Fund}, year = {2016}, month = sep, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b14-07-add09.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }