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The Green Climate Fund: Options for Mobilizing the Private Sector
The report argues that while public finance is essential for setting goals and building enabling environments, the bulk of investment for a low-carbon future must come from the private sector. It identifies significant barriers to this investment in developing countries, including country and currency risks, regulatory uncertainty, and technology cost gaps. The author proposes three structural options for the GCF: a combined public-private window (Option 1), a dedicated Private Sector Facility (Option 2), or a hybrid of both (Option 3). The report recommends the adoption of a dedicated facility that utilizes competitive processes, a lean business model, and a diverse array of risk mitigation tools to achieve market transformation and scale.
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Document type: Report