Mobilising public and private co-finance

Abstract

After a historic first-ever vote at the GCF Board meeting, the board adopted a funding proposal by the Asian Development Bank (ADB) at the last Board Meeting (B.24). The project aims to leverage up-front private, institutional and commercial finance for climate resilient subprojects. Using US$ 100 million of GCF funding, it plans to mobilise an additional US$ 1.310 million in co -finance from public and private sources (a ratio of 1:13). This is the largest ever sum of mobilised co-finance in one GCF proposal, which helps to foster the transformation towards a low-carbon climate-resilient economy. Does this vast amount of co-finance make the project a role model for the future of the GCF? In order to better understand what co-financing levels might be adequate for the GCF, this GCF Monitor assesses the newly adopted (B.24) policy on co-financing and analyses the current co-financing levels at the GCF project portfolio.