The U.N.'s Green Climate Fund can start deciding where to deploy its cash following the signing of an agreement with the Japanese government that means it will have enough money to begin operating.
The new fund for international climate finance needed to convert half of the $9.35 billion pledges made for its first pledging conference last November into firm contribution agreements to become effective. It had set a deadline for the end of April.
Japan and the United States did not meet that deadline, leaving the fund short. But Japan's move to firm up its $1.5 billion pledge on Thursday brings the total covered by signed agreements to $5.47 billion, above the 50 percent threshold.
The GCF, which is seeking additional funds from donors, aims to become the main international vehicle for climate finance.
So far 33 governments, including eight developing countries, have pledged nearly $10.2 billion to the GCF. Of those, 21 have signed contribution agreements.
At the end of April, the U.S. Department of the Treasury said Washington remained committed to the GCF and would continue to work with Congress to fulfill its $3 billion pledge.
The Green Climate Fund aims to have ready its first set of projects for approval by its board at a meeting in November. Money is unlikely to start flowing for activities on the ground until next year, however.
Exactly which type of projects the GCF will choose to back remains unclear.
Its mandate is to promote a shift toward low-emission and climate-resilient growth in developing countries, and help keep global temperature rise below 2 degrees Celsius.
The fund has a goal of allocating half of its resources for emissions-reducing projects and half for efforts to protect people from climate change impacts such as extreme weather and rising seas.
A recent analysis identified under-funded areas that could maximize the GCF's impact - in particular, investments in efficient and resilient cities, land-use management and reducing the vulnerability of small islands, the fund said.
PHOTO: A man holds the twig of a cherry tree in full bloom in Ueno Park on a sunny day in Tokyo, March 30, 2015.
CREDIT: REUTERS/Thomas Peter.