There is a strong case for the Green Climate Fund to support private sector investment in the move towards a low carbon, climate resilient – or ‘climate compatible’ – future. To have a chance at maintaining the climate at two degrees over pre-industrial levels, economies will need to transform. This implies significant investment in both mitigation and adaptation to help move countries onto climate compatible pathways. The public sector has a critical role in setting goals, building the enabling environment, and investing in research, development and public infrastructure in ways that support the transition. But businesses and households will be responsible for the bulk of the investment needed, and will need access to finance. This paper outlines the need for, and barriers to, private sector investment, and presents a range of complementary strategies for overcoming these barriers.
Sierra, K. The Green Climate Fund: Options for Mobilizing the Private Sector. (2011) 47 pp.