REPORT: How can Bangladesh’s private sector engage with the Green Climate Fund?
This new report, ‘How can Bangladesh’s private sector engage with the Green Climate Fund?‘, provides a snapshot of Green Climate Fund (GCF) processes and procedures to help private sector entities understand the concepts and relevant standards of both private sector facilities and the GCF. It also answers some frequently asked questions related to the opportunities that they offer.
The GCF is the world’s largest climate fund. It hopes to mobilise $100 billion of climate finance per year to help developing countries achieve their ambition for low carbon resilient development. The GCF has a goal to divide this money equally between mitigation and adaptation projects which would provide a welcome boost to developing countries’ ability to adapt to the impacts of climate change. One aim of the fund is to promote private sector investment in climate change.
To achieve this the Fund has created a special private sector facility, which seeks to engage businesses, such as investors, commercial banks, corporations and small and medium-sized businesses. But engaging with these businesses is a challenge – a lack of awareness of such schemes and a failure to effectively communicate the business case for climate change investment is putting the brake on funding. So how can the private sector best engage with large funds such as the GCF?
This question lies at the heart of a new report published by the International Institute for the Environment and Development (IIED), and co-authored by Acclimatise and the International Centre for Climate Change and Development (ICCCAD). The report focuses on Bangladesh – a country that is highly vulnerable to climate change and its impacts, but also one that is taking significant action to increase its resilience. In an effort to improve the ability of the private sector to access the GCF, it provides a toolkit to guide Bangladesh’s private sector, unpicking the different mechanisms through which they can access the Fund.
Commissioned through the UK Department For International Development (DFID) Bangladesh learning hub grant and CDKN’s ‘Building readiness of the private sector in Bangladesh for GCF accreditation’ project, the toolkit is designed for use by businesses that want to channel and manage GCF funds towards climate-relevant projects and programmes, or develop and implement projects themselves.
There is a robust and dynamic private sector in Bangladesh which can capitalise on opportunities provided by international climate finance. Bangladesh has struggled with engaging the private sector in a meaningful way to support businesses in their role as a critical engine of climate compatible development. This has been partly due to shortage of knowledge, capacity and skills required to mobilise private actors on climate compatible development. It is hoped that toolkits such as this one can help to stimulate interest in climate resilient investment from the private sector and reduce companies’ risk burden.
Photo: Lucy Milmo/DFID