The Green Climate Fund is the world's largest dedicated climate fund, established to help developing countries reduce greenhouse gas emissions and strengthen resilience to climate change impacts. It has pledged $9.8 billion for its first replenishment period and has approved 143 projects totaling $6.2 billion to date across 106 countries. The Fund uses its Private Sector Facility to promote private sector climate action through innovative financing instruments like loans, equity, and guarantees to de-risk investments and mobilize private capital for low-carbon and climate-resilient development. Examples of Private Sector Facility projects include a $56 million concessional loan and grant to the Development Bank of Southern Africa for a lending facility to catalyze $850 million in

1. Green Climate Fund
Developing a green finance facility to catalyse private
investments
Leo Park
Financial Institutions Manager &
Corporate Sustainability Officer

2. The world’s largest dedicated climate
fund helping developing countries
reduce their GHG emissions and
enhance their ability to respond to
climate change
THE GREEN CLIMATE FUND
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3. 3
An operating entity of the UNFCCC financial mechanism
fostering a paradigm shift to low-emission and climate-resilient development pathways in
developing countries
USD 9.8B pledged
for GCF-1
2010 2011 2012 2014 2015 2020
Established
at COP16
Governing
Instrument
First Board
Meeting
USD 7.2B
received for IRM
First Projects
Approved
The GCF
A quick review
• 143 Projects – USD 6.2B
• 106 under implementation
• 99 Accredited Entities
• 106 countries reached
Source: Green Climate Fund (July 2020)

4. • Geographical and thematic balance
• 50% of adaptation resources for
SIDS, LDCs and African States
• Public and private operations
• 3 FundingWindows:
• Readiness
• Project Preparation Facility
• Funding Proposal
GCF Resources

5. The Green
Climate Fund’s
Private
Sector
Facility
GCF’s Private Sector Facility
Our Mission
To promote private sector climate action in developing
countries by de-risking the delivery of capital flows for
low carbon and climate resilient development
Our Vision
To emerge as a premier climate knowledge and
investment hub for private sector climate action
We do this through innovative structuring using
instruments such as:
✓ Senior & subordinated debt
✓ Development equity
✓ Subordinated equity
✓ First loss equity
✓ Guarantees
✓ Fit for purpose grants such
as result-based payments
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6. GCF support to green finance facilities
Funding
proposal and
Project
Preparation
Facility Delivery partners:
Government stakeholders:
Objectives:
› NDAs, financial regulators, finance ministries, central banks
› Concessional green credit lines for on-lending and other de-risking financial
instruments
› Project Preparation Facility grant funding to develop pipeline of green
investments
› Creation of green banks or transform an existing institution into a green bank-
like entity
› GCF Accredited Entities including MDBs, national development banks and
commercial banks, among others

7. Countries GCF financing Accredited entity Financial instrument
South Africa, Namibia,
Eswatini, Lesotho
USD 56 million DBSA Concessional Loan
and Grant
▪ Lending facility designed on green bank
model to address market constraints and
catalyze private sector climate investments
▪ Concessional funding in the form of
subordinated debt / first-loss instruments to
de-risk targeted climate investments to
mobilize up to USD 850 million project level
co-financing from commercial banks.
▪ Emissions reduction of 23.2 million tCO2e
and 443,00 beneficiaries
Sample Private Sector Facility Project
DBSA Climate Finance Facility

8. NDA:
Geography:
Project Description & Objective
The project provides the Government of Cambodia (GoC) with a clear framework and recommendations on
how best to progress with their climate change goals through a key initiative: Development of a catalytic
financial institution for green financing that will contribute to Sustainable Development Goals:
1. Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all
countries through supporting financing of projects that bring climate resilience to communities
2. Integrate climate change measures into national policies, strategies and planning
3. Improve education, awareness-raising and human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning on climate change through working with banks
on financing climate change adaptation and mitigation projects.
Cambodia
Green Finance Readiness Case Studies
Mekong Strategic Partners
Design of a Cambodian Institution for Green Financing
NDA: Ministry of Environment
and Tourism, Nature
Conservation Fund
Geography:
Project Description & Objective
This project supported the Government of Mongolia (GoM) in establishing and scaling
up a national financing vehicle to bring long‐term finance to projects and programs
that stimulate green growth. Through a multi‐stakeholder, public‐private partnership
approach, GGGI has been supporting the GoM and Mongolian Bankers Association
(MBA) to establish the Mongolia Green Credit Fund (MGCF), including assessment and
concept development stages in 2016 and further design and operationalization in 2017.
Mongolia
XacBank – Establishing and scaling up a national financing vehicle

9. XacBank – Mongolia Green Finance Corporation
The Journey So Far
1. Readiness
Delivery Partner: GGGI
Date: May ‘17 – April ‘18
Description: Scoping study
to determine structure,
legal diligence, business
model, etc. for a national
green finance vehicle
(MGFC).
2. PPF
AE: XacBank
Consultant: Macquarie GIG
Date: June ‘19 – Sept ’19
Description: Develop
guidelines for governance
structure, capitalization and
other operational issues
based on GIB model
3. FP
AE: XacBank
Date: November ’20
Description:
Establish the MGFC,
pending board approval
MGFC establishes a model for other countries to follow in creating national green banks
using the full lifecycle of GCF support

10. (Long-term) Work directly
after BPDLH becomes an
accredited entity of the GCF
BPDLH
Accredited Entity
(PT SMI, KDB,
etc.)
Local financial
institutions
(Short-term) Receive
funding through an
accredited entity
Direct funding
Fund via local FIs
Climate projects
(e.g. renewable,
energy efficiency,
land-use)
GCF Potential engagement with Indonesia

11. https://www.greenclimate.fund/document/gcf-driving-transformation-climate-
resilient-financial-system
GCF Financial Institutions publication

12. Green Climate Fund
Songdo International Business District
175, Art Center-daero
E-Mail privatesector@gcfund.org
Yeonsu-gu, Incheon 22004 Republic of Korea
Get inTouch
Leo Park
Financial Institutions Manager &
Corporate Sustainability Officer PSF
lpark@gcfund.org