GCF insight #25 | Project development: overcoming operational risk

30 April 2024, Category: All insights, GCF insight, Tags: climate finance, gcf, GCF insight, Green Climate Fund

Welcome to the 25th GCF insight report – Project development: overcoming operational risk. Download your copy of this edition of GCF insight here.

Project development for the Green Climate Fund (GCF) can be fraught with operational risks for stakeholders. These risks include financial uncertainties like budget and schedule overruns. Difficulties aligning project goals with stakeholder priorities and navigating evolving GCF requirements can also present challenges. Additionally, political and organisational changes in project locations can threaten project continuity.

What are the biggest challenges that project developers are facing? What moments in the GCF project development pipeline present the most risk? This latest edition of GCF insight uses research, analysis, and stakeholders views to answer these questions – and provides several useful recommendations that project developers can use and should be aware of. 

GCF insight #25 is a fantastic foray into the process of how GCF projects are developed from the ground up, and how risk can affect this process. Throughout this edition, we cover:

• Profiling the risks within the five stages of GCF project development;
• Exploring co-financing and the considerations projects teams must have when approaching it;
• Getting to grips with stakeholder engagement and the risks this necessary component of project development faces;
• Analysing the wider risk environment through an insightful and revealing stakeholder survey.

About GCF insight

This survey and report is an initiative of E Co., and emerges from work we are doing to accelerate low-carbon climate-resilient development. E Co’s team of consultants designed and administered the survey which was used to inform and prepare this report. E Co. has conducted this research independently and is not affiliated with the Green Climate Fund (GCF), the GCF Secretariat or donors. The views expressed in this report are those of the authors and do not represent those of the GCF. Nothing in the interviews or any information or material relating thereto shall be construed as implying any official endorsement of or responsibility on the part of the GCF.

About E Co.

For over 24 years, we’ve been supporting and guiding our clients to achieve low-carbon climate-resilient development. We do this by catalysing systemic transformation, helping our clients establish strong foundations for impact. We add value through our expertise in technical, financial, cultural, and local contexts. This allows us to tailor services to our clients’ specific needs and ensure successful projects within complex local environments and financial systems.

Our services include: assessment of contexts and baselines, design of strategies and frameworks, fund support, and development of policies, programmes and projects. We empower our public and private sector clients to secure financing for low-carbon, climate-resilient, and sustainable growth initiatives. We lower risk, increase predictability, and we design for impact.

Funding for the future: Get to grips with climate finance

Let’s accelerate progress together: Get in touch with our climate finance consultants to discuss a project you’re working on. Email us at: amy@ecoltdgroup.com or find us at the following:

Twitter: @ecoltdnews
LinkedIn: E Co.
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Please feel free to share your comments below or send an email to: gcfinsight@ecoltdgroup.com.

We are very grateful to the respondents and interviewees of this study for their contributions and insights.