Bank of the Cook Islands (BCI) is now accredited as a National Direct Access Entity accredited for Project management and on-lending and/or blending (for loans) following a signing ceremony at the Green Climate Fund (GCF) headquarters in South Korea.

Jennifer Henry, BCI chief executive officer and board chair Tatiana Burn formalised the legal agreement of BCI’s accreditation to the Green Climate Fund this week.

Henry told Cook Islands News that the next step for BCI is in two parts - Readiness and Projects.

She said readiness is a form of Green Climate Fund funding format that enables the bank to meet the conditions of the accreditation master agreement, including enhancing capabilities of BCI and implementing entities towards engagement with the GCF.

“Climate finance from GCF is accessed by way of a project or programme in line with our country's priorities.

“For BCI, as a national bank, we will be working on both public sector and private sector projects (combined or separately),” Henry said.

Once “readiness funds” are received, which is the first step for BCI, the bank will be able to take ideas from the Cook Islands private sector or government into concept notes for the GCF to consider.

“Right now, BCI is working very closely with the Ministry of Finance and Economics Management (MFEM) on a project for climate resilient buildings - adapting public and private buildings to withstand a category 3 cyclone.

“While we are not (yet) at the stage where finance is accessed from GCF at concessional rates and passed on to our people by way of concessional climate loans, that remains the goal,” Henry said.

She also stated that being the first in Polynesia accredited for on-lending and blending, now joining the Direct Access Entity counterparts in Micronesia and Melanesia, is an “important milestone” for the Pacific.

There are two key areas of climate finance for projects, these are Mitigation - reduction of greenhouse gas emissions, or Adaptation - resilience to withstand the impact of climate change.

In a media release, Henry Gonzales the Chief Investment Officer of the GCF Secretariat congratulated BCI stating “(BCI’s) accreditation signals an important milestone in the partnership to develop transformational impactful and country driven projects and programming for GCF”.

Gonzales went on to say “We frame this signing as a commitment of both parties to deliver and align our programming with the Nationally Determined Contributions (NDC’s) of the Cook Islands in the key sectors of renewable energy, climate resilient agriculture, infrastructure, sustainable tourism, and green finance”.