DFCC leads sustainable finance with Sri Lanka’s first GCF accreditation

From left: DFCC Bank Sustainability and Consulting Vice President Nalin Karunatileka, DFCC Bank Sustainability Assistant Vice President Senaka Jayasinghe, Environment Ministry Secretary Dr. Anil Jasinghe, DFCC Bank Director/CEO Thimal Perera and DFCC Bank Chairman J. Durairatnam – Pix by Ruwan Walpola

By Darshana Abayasingha

DFCC Bank has become the first Sri Lankan entity to receive Green Climate Fund (GCF) accreditation, giving it access to concessionary funding for projects with a value of up to $ 250 million. 

The accreditation enables DFCC to finance climate mitigation and adaptation projects across Sri Lanka, and GCF support can be offered to any number of projects, subject to a stringent qualifying criteria. DFCC Bank Sri Lanka is now one of 118 institutions globally accredited with GCF at the forefront of supporting efforts to combat climate change.   Environment Ministry Secretary Dr. Anil Jasinghe, who was the Chief Guest at an event in Colombo on Tuesday as DFCC Bank made public its achievement. 

He revealed that DFCC is currently working on two concept notes for GCF funding. One project focuses on e-mobility and the other on solar energy worth $ 35 million each. Dr. Jasinghe enthused at the prospects for attracting new investments and projects for greening our economy, and encouraged DFCC bank to support other banks to obtain GCF accreditation. 

“GCF is a very tough accreditation to receive, therefore we must first congratulate DFCC bank on this achievement. We would now be able to access GCF funding without going through international intermediaries, which will deliver savings in time and outflows,” Dr. Jasinghe said. 

“The Ministry of Environment is the national authority for GCF, and we encourage DFCC Bank to produce quality proposals that we could support. We are keen to further build capacity at DFCC on climate action, and have arranged programmes to educate personnel on developing quality concept papers. You need to develop many concept papers, because not every concept paper will go through to maturity. The country is undergoing a greening of the economy and this will be a major driver as we are engaged in developing green energy capacity in the country and we are working with the private sector of the country,” Dr. Jasinghe added.

The GCF, established in 2010 by 194 countries under the United Nations Framework Convention on Climate Change (UNFCCC), is dedicated to supporting developing nations with efforts to address the challenges of climate change. The fund focuses on mitigating greenhouse gas emissions and enhancing climate resilience, whilst prioritising the needs of countries most vulnerable to climate change impacts. 

DFCC Bank Chairman Jegan Durairatnam said: “We are honoured to become the first Sri Lankan entity to be accredited by the Green Climate Fund. This achievement is testament to DFCC’s commitment to sustainability, guided by our strategy and vision of creating a resilient world for everyone. We are excited to leverage this accreditation to mobilise climate finance and spearhead impactful projects that address urgent climate challenges facing Sri Lanka.”

DFCC Bank’s GCF accreditation enables it to use various blended financing options to fund individual climate adaptation and mitigation projects and foster resilient businesses. The Bank will collaborate closely with the Ministry of Environment and other ministries, private investors, national and international financial institutions, development agencies and other relevant stakeholders to fulfil Sri Lanka’s climate-related commitments and the goals outlined in the Nationally Determined Contributions (NDCs) and the National Adaptation Plan.

CEO Thimal Perera, noted DFCC is privileged to lead the way with financing sustainable environmentally-friendly growth in Sri Lanka, and stated the bank would be happy to share its learning and experience with other banks who wish to obtain GCF accreditation. 

DFCC Bank’s Sustainability Strategy, developed and implemented in 2020, is underpinning its GCF accreditation. This strategy sets forth the Bank’s sustainability goals for the next decade, aligning with its overarching purpose of contributing to a resilient Sri Lanka. By 2030, DFCC Bank aims to emerge as a carbon-neutral bank and the leading institution for green finance in Sri Lanka. The Bank’s sustainability initiatives encompass environmental objectives and sustainable work lifestyles, fostering resilience at personal, organisational, and national levels.