CINews journalist Melina Etches in this report explains the banking milestone reached by the bank of the Cook Islands in gaining accreditation as a Green Climate Fund direct access entity.

The Bank of the Cook Islands (BCI) is proud to announce its formal accreditation as a Direct Access Entity by the Green Climate Fund (GCF), following the successful outcome of the GCF 40th Meeting of the Board of Directors held in Songdo, South Korea on October 21, 2024.

This accreditation highlights BCI's alignment with GCF’s stringent fiduciary standards, positioning the bank as a key player in climate finance initiatives.

As the world’s largest dedicated climate fund, the GCF plays a pivotal role in supporting developing countries in achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement.

The Green Climate Fund 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 regards 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 USD10 million.

Vaine Nooana-Arioka served as BCI managing director from 2008, then as CEO since 2020, stepping down in 2023. She is the GCF Accreditation Lead, with Anna Glassie as Accreditation Associate.

Nooana-Arioka said the accreditation process was part of BCI’s broader strategy to increase the nation's capacity to manage and access international climate finance.

The accreditation process was supported by GCF readiness funding, that began with a gap assessment conducted by PricewaterhouseCoopers in 2018.

She said over subsequent years, BCI worked diligently to meet the GCF’s stringent accreditation standards, which involved improving its institutional policies, including the development of an Environmental and Social Risk Management framework and capacity-building initiatives for its staff.

This readiness funding enabled BCI to strengthen internal systems and enhance its knowledge in climate finance, ensuring that the institution could effectively implement Green Climate Fund funded projects.

Nooana-Arioka said the significance of BCI’s GCF accreditation lies in its ability to access concessional finance, specifically through on-lending and blending, to mobilise investment in both climate mitigation and adaptation projects.

“The GCF's support allowed BCI to target private sector investments, filling crucial gaps in the local economy by offering affordable and inclusive green finance options.

“In addition to the GCF accreditation, BCI’s leadership in this journey has been highlighted by a team of local experts, including women who have been at the forefront of this effort.

“Their commitment to navigating complex climate finance frameworks has not only positioned BCI as a national entity capable of managing large-scale climate projects but also as a catalyst for long-term sustainable development in the Cook Islands​.”

This journey, supported by multiple readiness grants and technical assistance from international partners, underscores the Cook Islands' broader strategy of strengthening climate resilience while enabling economic growth. The Bank’s accreditation with the GCF is a pivotal moment that will allow the country to channel much-needed climate finance to vulnerable communities, supporting projects that will mitigate climate risks and support sustainable development​ Green Climate Fund. “This accomplishment is not just an institutional milestone but a key step toward fostering a climate-resilient Cook Islands, where green finance becomes a driving force in shaping the nation’s future,” said Nooana-Arioka.