Green Climate Fund

On October 29, the Green Climate Fund (GCF) approved $250 million for the Glaciers to Farms initiative, a flagship adaptation program led by the Asian Development Bank (ADB) to strengthen water and agricultural resilience in glacier-dependent regions of Central Asia, the South Caucasus, and Pakistan. According to ADB, the GCF financing will be provided mainly as grants and complemented by $3.25 billion in ADB investments over the next decade through a series of country-led projects.

These projects aim to improve agricultural productivity by investing in efficient irrigation, water storage, and watershed management, helping communities adapt to increasingly frequent droughts and floods caused by accelerated glacial melt. Yasmin Siddiqi, the ADB Director for Agriculture, Food, Nature, and Rural Development, emphasized that "rapid glacial retreat is one of the most complex development challenges faced by our region," noting the need for "practical, scalable, and science-based solutions." She stated that with GCF’s support, Glaciers to Farms would move the region beyond fragmented projects and toward systemic, long-term resilience that protects lives and livelihoods.

The program encompasses nine ADB developing member countries — Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan — all of which depend on glacier and snow-fed rivers for agriculture, domestic water, and power generation. The initiative will target four major glacier-fed river basins — the Naryn and Pyanj in Central Asia, the Kura in the South Caucasus, and the Swat in Pakistan — covering approximately 27 million hectares and directly benefiting about 13 million people.

Planned activities include climate and glacier assessments to guide national development strategies, improved monitoring and early warning systems for floods and droughts, and adaptive social protection and health services for communities affected by water shortages and heat stress. The program will also enhance the capacity of local banks to support agricultural enterprises, particularly those led by women. Thomas Eriksson, the GCF Director for Eastern Europe, Central Asia, and the Middle East, stated that Glaciers to Farms "sets a transformative benchmark by improving data, coordination, and financing readiness for long-term resilience in the region’s water and food systems." He added that the program represents "a large-scale, innovative, and collaborative effort" to strengthen climate adaptation and cooperation across Central and West Asia.

European Bank for Reconstruction and Development

In a related development, the European Bank for Reconstruction and Development (EBRD) announced plans to launch a Green Economy Financing Facility (GEFF) in Azerbaijan — a $100 million program to promote green investments through Partner Financial Institutions (PFIs) over a five-year period. According to the EBRD, the facility’s objective is to advance the Green Economy Transition (GET) in Azerbaijan by supporting PFIs in providing loans to private sector borrowers, including individuals, MSMEs, and corporations, for projects in renewable energy, energy efficiency, resource efficiency, the circular economy, and climate resilience.

Scheduled for approval by the EBRD Board of Directors on December 3, the program will combine financing with technical expertise to help PFIs develop green products and strengthen institutional capacity. The EBRD stated that the facility will also "address barriers to green lending and promote equal access to green finance for women and men." It will build on Azerbaijan’s growing momentum in sustainable finance, following the COP29 conference held in Baku in November 2024. The GEFF initiative will be supported by a Technical Cooperation (TC) package of up to $3 million for management, project origination, and training, funded by donors including the Government of Azerbaijan and SSF. Additionally, a Concessional Finance component of up to $4 million will be provided for results-based compensation to PFIs, also financed by various donor partners.