GCF insight #5: Co-financing: Stakeholder perceptions
The Green Climate Fund (GCF) was born out of the realization that existing climate finance was not enough to shift global economic development necessary to more sustainable pathways. For a significant impact to be made, a higher volume of support was needed. It is this understanding that drives the Fund’s aim of levering additional money for the projects it funds.
This edition of GCF insight explores stakeholders’ perceptions of co-financing and how they deal with the challenges associated with it. Stakeholders’ feedback also included suggestions on how the Fund could address co-financing issues.
A survey of GCF stakeholders conducted for this report revealed that project developers routinely struggle with the issue of co-financing. While the Fund requires accredited entities to secure up-front co-financing for projects, respondents believe its views on the matter diverge from their own. Key discrepancies exist around the benefits, appropriate levels of co-financing and desirable sources of co-financing. Though co-financing challenges vary amongst the type of stakeholder, virtually all respondents either indicated confusion over the amount of co-financing the Fund desires or felt that its expectations were too high.
Read about these findings and download the report here. We hope you find it useful – feel free to let us know what you think.