The Global Environment Facility (GEF) has announced that the World Council of Credit Unions (WOCCU) is among 13 organizations selected to receive a 2024 Challenge Program for Adaptation Innovation award. The announcement was made during an event at COP 29, the United Nations Climate Change Conference in Baku, Azerbaijan.
With the $1.8 million grant, WOCCU plans to launch a pilot initiative in 2025 to develop a comprehensive, scalable approach along with digital tools for credit union networks within the West African Economic and Monetary Union. This initiative will help these networks manage climate risks and provide climate adaptation finance solutions to needy populations.
The project will focus on enhancing the capabilities of credit union networks in Benin, Senegal, and Togo, aiming to boost the resilience of their members through tailored climate adaptation financing. It will incorporate user-friendly digital tools provided by YAPU Solutions, supplemented by technical support, performance-based grants, and data-driven methods to evaluate climate risks and track investments.
These resources will empower credit union networks to identify, onboard, and fund locally applicable adaptation solutions. The ultimate goal is to create a scalable framework for climate adaptation finance within the credit union sector.
Elissa McCarter LaBorde, President and CEO of WOCCU, emphasized the crucial role of credit unions in building community resilience amid global climate challenges. “As financial institutions withdraw from riskier markets, credit unions are poised to support their members in adapting to these changes,” she stated. “Our collaboration with YAPU Solutions in West Africa represents an exciting opportunity to develop a model that could be implemented globally, supporting our membership of over 400 million in more than 100 countries.”
The GEF has allocated $20 million in grants as part of the Challenge Program for Adaptation Innovation, which offers seed funding to innovative projects aimed at helping vulnerable nations manage the escalating climate crisis. Carlos Manuel Rodríguez, GEF CEO and Chairperson, highlighted the dual nature of climate change as both a challenge and an opportunity for innovation in financing adaptation efforts.
Financing for this initiative is sourced from GEF’s dedicated climate adaptation funds: the Least Developed Countries Fund (LDCF), which specifically addresses the needs of the world’s least developed nations, and the Special Climate Change Fund (SCCF), which focuses on adaptation priorities for Small Island Developing States while also fostering innovation and private sector engagement.
