Green Climate Fund

The Private Sector Facility of the Green Climate Fund (GCF) seeks to acquire private sector investments for clean energy and climate resilience projects in developing countries. Various financial instruments are available and can be combined with concessional funding.

Partial credit guarantees are offered to credit enhance projects through covering payment defaults by the borrower or issuer up to a pre-determined amount.

Clean energy and climate-resilience projects, including financing of infrastructure.

The GCF defines a range of project investment criteria:

• Impact potential in accordance with GCF’s objectives and fields of application.
• Paradigm shift potential: Catalytical impact beyond the single project, acceleration of private sector engagement, systemic changes towards low-carbon and climate-resilient development.
• Sustainable development potential: Project benefits and priorities in accordance with sustainable development, including environmental, social and gender equality objectives as integral elements of the project.
• Financing needs of the beneficiary country and population addressed by the project.
• Country ownership and capacity for the implementation of the project in compliance with the country’s policies, institutions and climate strategies.
• Cost-effectiveness of the project and capacity for private sector finance acquisition.

Developing countries, with a particular focus on least-developed countries, Small Island Developing States and African states.

https://www.greenclimate.fund/what-we-do/private-sector-facility