Oman and The Green Climate Fund

Written By: Chris Govier | Date: 2020

The Green Climate Fund (GCF) is the largest dedicated fund helping developing nations reduce their greenhouse gas (GHG) emissions and improve their ability to adapt to climate change. Established by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, the GCF supports the Paris agreement to keep global temperature rise below 2 ℃ by directing climate finance to developing countries. The targets set out by the UNFCCC will only be reached with buy in from the finance industry.

As the GCF catalyses the flow of climate finance to invest in low-emission, climate resilient development projects; leading to a shift in how the global community reacts to the challenge of climate change. Directing public investment to stimulate private finance, is one way in which the GCF is multiplying the effects of the initial financing. Climate change action requires action from nations across the development continuum, private companies and individuals.

Engaging with the GCF is relatively new to Oman’s greater support strategy and development framework. The sultanate has already taken advantage of GCF activities, such as the 2017 readiness proposal and subsequent report submitted by the Ministry for Environment and Climate Affairs (MECA) and Sultan Qaboos University (SQU). In this proposal, approximately $300,000 USD was provided to the Sultanate, with MECA and SQU developing a report that highlighted the capacity to develop strategic frameworks and identify a pipeline of potential projects and programmes aligned with the criteria of the GCF.

In the post CoVid-19 reality, Oman is prioritising a diversification strategy. Initially Vision 2020 and now Vision 2040, this strategy focuses on establishing a population who are digitally literate and entrepreneurial; while at a policy level improving infrastructure and telecommunications. CoVid-19 is the stress test, to see how the previous 25 years of investment have worked. Funds such as Oman Technology Fund, and Oman Industrial innovation Centre are working to reach the 40% of private sector work force to be nationals with a strong focus on entrepreneurship and innovation; factors that the GCF strongly support. With such a strong focus, internally, on the sustainable future of Oman’s economy this is the time for more people to engage with the GCF, and other green funds to drive innovation.