This document outlines a proposal for a GCF approach to co-financing in its activities. The document presents a brief overview of the historical/political setting, as well as an outline of existing methodologies more widely used in the area of climate finance reporting.

The document introduces key definitions, including a differentiation between direct and indirect co-finance, mobilized finance, sequenced financing, in order to account for more granularity in reporting and for attribution purposes. This policy takes into consideration principles and guidelines based on best international practice. Key principles are also introduced in order to provide guidance internally and externally on the applications of GCF policies and guidelines.