This project scales up access to climate finance in low- and middle-income countries by developing green bond markets that mobilize investment in low-emission development. It supports GCF’s strategic goal of mobilizing private finance through innovative, market-based instruments.

Scaling low-emission development in the participating countries is constrained by limited capital, underdeveloped financial ecosystems, and few instruments to attract private investment. These countries also face acute climate vulnerability and mounting risks to their economic and social systems. Strengthening local capital markets is essential to bridge financing gaps and channel resources toward mitigation priorities.

The project aims to mobilise climate finance in low- and middle-income countries by supporting the development of local green bond markets. Through a dedicated investment fund, capital from development finance institutions and private investors will be used to finance climate mitigation projects, while parallel EU-led facilities support capacity-building and lower borrowing costs for bond issuers.

 GCF will invest EUR 200 million (approximately USD 227 million) in equity through the initiative’s fund to support mitigation projects across ten participating countries. The project will prioritise small-scale, low-carbon energy systems and create investment opportunities in hard-to-abate sectors such as transport, helping to channel private capital toward national decarbonisation efforts.