The Green Climate Fund has launched a global campaign to tap private sector energies in tackling climate change during an international gathering of climate finance practitioners.
GCF announced it is offering USD 500 million to catalyse climate capital by selecting the best business ideas addressing climate change mitigation and adaptation in developing countries.
This is the first time GCF has called for proposals that specifically target the full range of climate finance opportunities in the private sector of the planet’s developing countries.
GCF’s Private Sector Facility, a team within the Fund designed to specifically mobilize private sector resources, hosted a side-event at the innovate4climate conference in Barcelona, Spain.
The event attracted around 60 participants from the private sector investment community to learn about the Fund’s Request for Proposals (RFP) on mobilizing funding at scale. Jiwoo Choi, PSF Deputy Head, presented the Fund to the investor audience, stressing that leveraging private climate finance was one of the distinctive features of GCF.
“Catalyzing private finance is a key part of GCF’s mission,” stated Choi. “This new programme will help us leverage our funds to bring more private climate capital into developing countries.”
Sergio Pombo, PSF senior advisor, outlined the RFP which was approved by the Board at its sixteenth meeting in April. He highlighted the distinctive features of this programme, in particular that it is open to applicants who are not yet accredited to the Fund.
“We are looking for bold project proposals that unlock private finance at scale. As part of our efforts to reach new partners, this RFP is open to proposals from entities that are not yet accredited to the Fund,’ said Pombo.
Jay Koh, Founder and Managing Director of The Lightsmith Group, and member of the Fund’s Private Sector Advisory Group (PSAG), was also on the panel. Koh emphasised the willingness of the Fund to engage with the private sector, to stimulate climate investment in developing countries, including by taking a ‘first loss’ position.
“GCF is scaling up its activities with the private sector to help it overcome market barriers. I would like to congratulate the Private Sector Facility for their work in creating this programme and reaching out to find new private sector partners,” Koh commented.
‘Innovative4Climate’ is a new global dialogue of finance, business, banking, government, and multilateral leaders focused on shaping the next generation of climate finance and policy instruments.
Learn more about GCF’s new private sector campaign: Pitch for the Planet!