GCF Private Sector Finance in Focus 4: Programmatic approaches
The vast majority of the private sector activities funded by the GCF so far are programmatic in nature. However, the GCF has not set specific rules regarding what constitutes a program. Although private sector programs are far more prevalent than public sector programs in the GCF portfolio, the proposed policy on programmatic approaches offers no guidance to address the specific challenges that private sector programs pose, such as little to no clarity or transparency on the location of proposed subprojects, or the sectoral balance of the approved program, making it impossible to meaningfully check for their social, environmental or gender implications at the time of Board approval. 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.