This policy package has been prepared for agenda item 8(b) on policy consultations, in line with the B.31 decision by which the Board agreed and confirmed the dates and venue of B.32, noting that the first two days will be sessions for policy consultations.
This document presents the GCF private sector strategy, which has been developed in line with the updated Strategic Plan. The document provides the rationale for a strategy by reviewing the climate financing gap and the imperative of mobilizing private finance to meet urgent mitigation and adaptation needs in developing countries. It highlights the barriers to scaling up private climate finance and sets out the GCF approach to removing these barriers and catalysing climate-friendly investment. An overview of the implementation status of the GCF private sector portfolio is provided as well as a review of the initial funding modalities deployed by the GCF Private Sector Facility. On the basis of lessons learned from the implementation of the private sector portfolio and global experience, the document proposes a way forward to strengthen the engagement of GCF with the private sector and meet the objectives and programming targets in its updated Strategic Plan. A private sector outreach plan is contained in annex II.