The vast majority of private sector activities funded by the GCF are programmatic in nature. Butthe GCF has not set specific rules regarding what constitutes a program. Although private sector programs are far more prevalent than public sector ones, the proposed policy does not address the specific challenges that private sector programs pose. This briefing offers guidance to strengthen the proposed policy on programmatic approaches to take account of issues specifically arising in the case of private equity financing programs.
This analysis looks at the 26 private sector entities currently accredited with the GCF as implementing entities and the approaches and financial instruments they use for GCF funded climate actions. It highlights significant transparency and accountability deficits with a number of these actors, including with respect to their experience and track record in implementing environmental and social safeguards and gender mandates of the GCF.
The objective of this discussion paper is to contribute to achieving the establishment and operationalization of an Loss and Damage Finance Facility (LDFF) that delivers on the needs of developing countries at speed and scale by explaining the why and how. The paper explains why the LDFF is necessary before turning to an analysis of the governing arrangements and core operational functions for the LDFF.