Through the Micro-, Small-, and Medium- Sized Enterprises (MSME) Pilot Programme, GCF aims 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 will seek to allocate at least USD 100 million for developing countries that are 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 recognises 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 in order to ensure the Fund’s resources reach MSME and have a measurable impact on the ground.
The RFP is open to projects or programmes supporting MSMEs that fit within national climate priorities, and that fit within the eight GCF key result areas. This includes MSMEs that work in any area of the supply chain for climate goods and services (from production and service, to distribution or retail), in both mitigation- and adaptation-related activities. This can include MSMEs at any stage in their business life cycle.
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.