MSME Pilot Programme
GCF's MSME RFP programme encourages strong proposals for private sector investment in support of MSME climate activities
Through the Micro-, Small-, and Medium-Sized Enterprises (MSME) Pilot Programme, GCF aimed to provide financing for MSMEs at all stages of growth. The GCF Board allocated up to USD 200 million for the Programme.
The GCF Secretariat sought to allocate at least USD 100 million for developing countries that were particularly vulnerable to the adverse effects of climate change, including least developed countries (LDCs), Small Island Developing States (SIDS), and African States, over the course of the Programme.
This diverse programme recognised the diversity of MSME conditions in the various regions, countries, and sectors, as well as the need to test appropriate business and institutional models, and various financial instruments to ensure the Fund’s resources reached MSMEs and had a measurable impact on the ground.
To achieve its objective of promoting a paradigm shift towards low-emission and climate-resilient development, demand from micro, small and medium-sized enterprises (MSMEs) for climate change activities will be of key importance. GCF will use its resources to improve MSMEs’ access to finance.
Eligibility
The RFP was open to projects or programmes supporting MSMEs that fit within national climate priorities and aligned with the eight GCF key result areas. This included MSMEs working in any part of the supply chain for climate goods and services (from production and service to distribution or retail), in both mitigation- and adaptation-related activities. MSMEs at any stage of their business life cycle could participate.
Following the call for proposals in August 2016, three funding proposals have been approved under the MSME pilot programme. Other project ideas are in the pipeline. A second tranche of the MSME pilot programme will be announced soon.
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Nº of projects 3
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Amount allocated to projects in USD 60 million
