Financial instruments of the Green Climate Fund
The Green Climate Fund offers grants, loans, guarantees and equity instruments for funding projects. It also provides additional grants and technical assistance for preparation of funding proposals and countries’ readiness,
as well as for accreditation support of nominated national direct access entities.
The terms of financial instruments for public and private sector are determined on a case-by-case basis.
Some of the guiding principles are:
- Grants should be tailored to incremental cost or the risk premium required to make the investment viable, or to cover specific activities such as technical assistance;
- Level of concessionality should not displace investments that would otherwise have occurred, including private sector investments;
- Levels of indebtedness capacity of the recipient should be taken into account;
- Promoting long‐term financial sustainability and seeking to maximize leverage in the case of private financing.
Access to the Green Climate Fund
There are five access windows to GCF resources which can be used by the National Designated Authority (NDA), selected national entities or accredited entities, depending on the needs of the country and at what stage it is in its country ownership process and project preparation.
The NDA is involved in all access windows to the GCF, either by implementing country readiness activities, generating or endorsing project proposals, endorsing national entities for accreditation or overseeing project implementation.