At its 18th board meeting in the Egyptian capital Cairo, the GCF, an international funding organization, approved the AUD$35m (US$26.9m) port project to help Nauru counter the effects of climate change.
The project will see the Nauru Government partner with the Asian Development Bank (ADB) to give the port a much-needed upgrade.
“We are extremely grateful for the tireless efforts of the ADB and for support from the GCF board to get this port proposal approved,” said Minister for Finance David Adeang.
“When completed, the port will become a major part of Nauru’s transport infrastructure enabling shipments to move in and out much more smoothly than they do now.”
The GCF is a global initiative that invests in low-emission and climate-resilient developments.
It pays particular attention to the needs of societies that are highly vulnerable to climate change, such as Small Island Developing States, of which Nauru is one.
The project is seen by the Fund as an important test case of climate resilient transport infrastructure.
Ayman Shasly, board co-chair from Saudi Arabia, said the decisions taken by the board will benefit climate-vulnerable developing countries and strengthen GCF's role in delivering sustainable climate change adaptation and mitigation outcomes.
Mr Adeang said the new port was yet another step forward for Nauru since the Waqa Government was first elected in 2013.