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.
This paper analysis whether the GCF’s Private Sector Facility (PSF) is falling substantively short of meeting its mandate to support micro-, small- and medium-sized enterprises (MSMEs). It finds that while the GCF does not issue portfolio-wide data on MSME support, almost a third of its funded activities offer at least some support to MSMEs. However most of those are classified as public sector projects and programs.
This analysis critically reviews the status quo of private sector support in the GCF several years into the Fund’s full operationalization finding that the dividing line between “private” and “public” GCF finance often remains unclear. This review by civil society observers to the GCF comes at a time when the effectiveness and future of the GCF’s existing private sector engagement strategy are under internal review.
The Green Climate Fund (GCF) is the most important multilateral climate fund supporting developing countries in implementing their climate goals to meet Paris Agreement targets. Five years after Paris, what has the GCF accomplished and how can it better support transformative change? This analysis provides an overview.