DPHE Database

Overview

The climate crisis is too big, too serious and too urgent to rely on the resources of public institutions alone. Today, the private sector manages more than USD 210 trillion in assets but only a very minor part of it is dedicated to climate investments.

As more governments put in place targeted policies and incentives to achieve their climate change and green growth ambitions, the private sector has an unparalleled opportunity to deliver the investment needed to spur innovation and create thriving markets for climate, spanning across clean energy, sustainable transport, green infrastructure or climate-resilient agriculture.

As a risk inclined and impact-oriented institution, GCF plays a pivotal role in shifting and catalysing financial flows managed by the private sector into low-emission and climate-resilient investments in developing countries.

Private Sector Facility

In order to scale up GCF’s activities and de-risk the delivery of capital flows, GCF has set up the Private Sector Facility (PSF), a dedicated division designed to fund and mobilise private sector actors, including institutional investors, project sponsors and financial institutions.

PSF promotes private sector investment through concessional instruments, including low-interest and long-tenor project loans, lines of credit to banks and other financial institutions, equity investments and risk mitigators, such as guarantees, first-loss protection, and grant-based capacity-building programmes.