GCF board meets in Korea to discuss how it will leverage billions in private funds. The Private Sector Facility (PSF), widely regarded as one of the innovative features of the Fund, has started to take shape with the board confirming that private sector intermediaries can be accredited to deploy the Fund’s resources.Such entities, the Board decided, will have a choice of financial instruments that includes equity and guarantee instruments alongside grants and loans.
Advice and specific recommendations on two particularly innovative roles of the PSF were provided.
First, the importance for ensuring the Fund supports the local private sector in developing countries, particularly small and medium sized enterprises (SMEs) for both mitigation and adaptation activities.
The other potentially innovative role for the PSF is on mobilising funds at scale. Given the scale of the climate related investment challenge, accelerating the participation of institutional investors within the financing of countries’ mitigation and adaptation programmes was emphasised. Read more at http://www.rtcc.org
