1. Partnering with the Green Climate Fund (GCF)
Andreas Lunding
Senior Structured Finance Specialist
Private Sector Facility, Green Climate Fund
Stockholm, 31 January 2018

2. Introduction to GCF
The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change.
GCF was set up in 2010 by the 194 country parties to the UNFCCC in 2010, as part of the Convention’s financial mechanism.
Supported by USD 10 billion in pledges, the Fund works with public and private sectors to promote a paradigm shift to low- emission and climate-resilient development.
GCF’s activities are aligned with the priorities of developing countries through the principle of country ownership.
Our innovation is to use public investment to stimulate private finance through the Fund’s dedicated Private Sector Facility.

3. Risk appetite to unlock ideas
GCF’s Private Sector Value Proposition
We understand the value of investing in climate finance in developing countries.
We aim to have a 50:50 balance in our portfolio between mitigation and adaptation investments over time.
We engage institutional investors, local banks/FIs and corporates to co-invest with GCF in projects.
We offer strategic, long-term funding through various instruments and can structure in concessionality to achieve results.
We can take on climate-related risk in order to address barriers to private sector climate finance flows.
Dedicated funding resources for country Readiness support and Project Preparation.
Country driven
Climate impact focus
Paradigm shift
Public+ private
Risk appetite to unlock ideas

4. GCF Works with the Most Climate-Vulnerable Countries
Developing countries are amongst the most climate- vulnerable and typically have limited incumbent adaptive capacity and investment capabilities.
GCF’s mandate specifically targets developing countries to work with these on a transition towards low carbon and climate resilient development pathways.
This includes a specific focus to work with LDCs, SIDS, and African states to increase their climate adaptation and resilience, with a min. 50% of overall GCF portfolio in adaptation directed to these countries.
Source: WorldRiskReport 2016

5. Environmental & social safeguards
GCF’s Accreditation Framework
GCF works through a network of Accredited Entities (AEs) to channel resources to projects.
AEs comprise private and public, non-governmental, sub-national, national, regional or international entities.
Accreditation is a fit-for-purpose due diligence process ensuring our partners share the same objectives as GCF, and that they have extensive experience and a strong financial and managerial infrastructure.
Mandate & track record
Project size
Alignment with GCF’s objectives
At least three years of operations
Micro (<USD 10M)
Small (USD M)
Medium (USD M)
Large (>USD 250M)
Fiduciary functions
Basic
Specialized
Project management
Grant award
On-lending/blending (loans, equity, guarantees)
Environmental & social safeguards
A/I-1 (potential high impact)
B/I-2 (medium impact)
C/I-3 (minimal or no impact)

6. 59 entities accredited to date
A Diverse Network of Partners
We work with a growing range of leading investors and changemakers within global climate finance.
Antigua & Barbuda
China
Fiji
Morocco
Namibia
Morocco
Bangladesh
Senegal
China
Korea
India
Argentina
Rwanda
India
Kenya
Indonesia
Bangladesh
Mongolia
Ethiopia
Peru
South Africa
59 entities accredited to date

7. GCF Investment Framework
6 Investment criteria
Impact potential (vs. GCF impact areas)
Paradigm shift potential (replicable/scalable)
Sustainable development potential (co-benefits)
Needs of the recipient (target population)
Country ownership (country climate targets/policies)
Efficiency and effectiveness (cost of emissions reduction, private sector mobilization/leverage)
8 Strategic Impact Areas
GCF policies
Environmental and social safeguards
Gender policy
Non-objection letters
Results management and reporting
Legal/Risk – risk-sharing structures where relevant
Implementation capacity of AE/executing entity
Private sector: minimum concessionality / minimizing market distortions

8. GCF’s Portfolio TOTAL FUNDING AMOUNT GEOGRAPHICAL DISTRIBUTION
TOTAL GCF PORTFOLIO (54 projects): USD 2.65bn
- OF WHICH PRIVATE SECTOR (PSF) (14 projects): USD 1.33bn
GEOGRAPHICAL DISTRIBUTION
Status as of January 2018

9. GCF’s Private Sector Facility (PSF)
PSF is a dedicated facility within GCF with the mission to:
Facilitate Board investment in catalytic mitigation and adaptation projects and programmes that mobilize private sector funds
Enable private climate finance in developing markets
De-risk investments
Bundle small projects into larger portfolios to achieve scale
Support capacity building
Develop public-private climate-resilient infrastructure
GCF provides concessional debt, equity, guarantees, and grants through a range of financing structures (project-based, funds, structured finance vehicles etc.)
Encourage innovation

10. Addressing Barriers to Private Sector Finance
Access to climate finance and local market
Policy & regulatory
Limited market capabilities
Limited range of financial instruments
Demand-supply mismatch
Appropriate strategic and regulatory framework
Consistent policy support and incentive systems 02 01 03
Affordability & technology
High technology and upfront costs
High cost of capital
Access to technology 05
Region & country related
Different barriers across regions and countries 04
Knowledge & education
Lack of awareness and training
Local financial institutions’ lack of capacity

11. Multiple Countries - Global
GCF Private Sector Projects
GEEREF NeXt
Countries
GCF financing
Accredited entity
Financial instrument
Multiple Countries - Global
USD 265 million
EIB
Equity and Grant
USD 250M in equity and USD 15M in grant
Innovative fund-of-funds vehicle with the aim of being the first investor in renewables/EE investment funds in target countries
Investee funds will provide early/growth equity capital to strong renewables/EE companies in developing markets
Channeling institutional investors into renewable energy and energy efficiency investments in developing countries
Significant climate impact due to the elevated multiplier effect
Emissions reduction of 769 million tCO2e

12. GCF Private Sector Projects
Sustainable Landscapes in Eastern Madagascar
Country
GCF financing
Accredited entity
Financial instrument
Madagascar
USD 53.5 million
CI/EIB
Equity and Grant
USD 35M in equity and USD 18.5M in grant
Holistic approach to sustainable landscape measures to enhance resilience of smallholder farmers and channel private finance into climate-smart investments in agriculture and renewable energy.
Innovative Public-Private project involving the European Investment Bank (EIB) and Conservation International (CI).
Aimed at overcoming barriers to private sector investment through issuance of a pioneering Climate Bond with all profits re-invested to capitalize a Climate Change Trust Fund for Madagascar.
Emissions reduction of 10.0 million tCO2e.

13. RFP: Mobilizing Funds at Scale
GCF INVESTMENT:
Up to USD 500M in projects/programmes
Published on
25 May 2017.
Closed on
30 August 2017.
COUNTRIES RECEIVED:
70+ Developing countries
NUMBER OF CONCEPT NOTES RECEIVED:
350 CNs
EST GCF REQUESTED FINANCING:
USD 18 Billion
EST. PROJECT COST:
USD 43 billion
SHORTLISTED CNs : 30

14. How Can You Work With Us?
Seek Accreditation. Entities seeking funding from GCF can apply to become an Accredited Entity (AE).
Partner with an Accredited Entity. Another option is to work in partnership with an existing AE as an Executing Entity to seek GCF funding.
RFPs. GCF also issues Requests for Proposals aimed at addressing specific (private sector) financing gaps – and these may be open to entities who are not yet accredited.
Co-financing. More broadly, GCF seeks to maximize co- financing for its projects (especially from the private sector).
GCF projects offer opportunities for private sector investors to participate in transformative climate finance investments across developing countries that are underpinned by GCF’s value proposition (concessional finance, project support etc.)

15. REACH OUT
Andreas Lunding Senior Structured Finance Specialist GCF, Private Sector Facility
WEBSITE:
Greenclimate.fund

16. Appendix: Approved GCF Private Sector Projects
Board
Project/Programme
Country AE
GCF Amount (USD M)
Total Amount (USD M)
Theme
B11
KawiSafi Ventures Fund in Eastern Africa
Kenya and Rwanda
Acumen
25.0
110.0
Cross-cutting
Energy Efficiency Green Bond in LAC
Mexico
IDB
22.0
780.0
Mitigation
B13
Climate Action and Solar Energy Development Programme in the Tarapacá Region in Chile
Chile
CAF
49.0
265.0
B14
Sustainable Energy Financing Facilities (SEFF)
Africa/ Asia / EE (10 countries)
EBRD
378.0
1,419.0
Sustainable Landscapes in Eastern Madagascar
Madagascar
CI/EIB
53.5
69.8
Universal Green Energy Access Programme (UGEAP)
Benin, Kenya, Namibia, Nigeria, and Tanzania DB
80.0
300
B15
Business loan programme for GHG emission reduction
Mongolia
XacBank
20.0
60.0
SCF Capital Solutions
South Africa
DBSA
12.2
34.2
Catalyzing Private Investment in Sustainable Energy in Argentina
Argentina
133.0
653.0
B16
Geeref NeXt
Global (29 countries)
EIB
765.0
GCF-EBRD Egypt Renewable Energy Financing Framework
Egypt
154.0
1,007.0
B18
Renewable Energy Program – Solar #1
8.6
17. 6
GCF-EBRD Kazakhstan ReFramework
Kazakhstan
557.0
Low Emissions and Climate Resilient Agriculture Risk Sharing Facility
Mexico and Guatemala
158.0