This document discusses international climate finance and the roles of the public and private sectors. It provides an overview of international climate finance, noting it aims to reduce emissions and vulnerability to climate change. The public sector is tasked with mobilizing climate finance from various sources, while the private sector is a key source of finance and investment. Two case studies are presented: the Flemish Partnership for Water Development, a public-private network focused on water projects, and the Green Climate Fund's Private Sector Facility, which uses financial instruments to promote private sector investment in climate projects.

1. The Role of the
Private Sector
in the
International
Climate Finance
How to mobilise
actions?
Vicky Noens
Division Strategy,
International Policy and Animal
Welfare

2. 2
Content
1.International Climate
Finance
2.Role of Public Sector
3.Role of Private Sector
4.Cases
1. Flemish Partnership Water for
Development
2. Private Sector Facility of
the Green Climate Fund

3. 3
International Climate
Finance
Climate finance aims at reducing
emissions, and enhancing sinks of
greenhouse gases and aims at reducing
vulnerability of, and maintaining and
increasing the resilience of, human and
ecological systems to negative climate
change impacts (BA 2014)
Flows from developed countries to
developing countries

4. 4
The Role of the Public
Sector
Take the lead in mobilizing climate
finance from a wide variety of sources,
instruments and channels, noting the
significant role of public funds, through
a variety of actions (PA, Art. 9.3)
Reorient and mobilise private finance, for
example via carbon pricing, financial
instruments such as Green Bonds and
public-private partnerships (ECOFIN 2015)
Develop a broad set of instruments to
mobilise private sector finance for
international climate actions including
mobilised local private sector finance
(ECOFIN 2015)
Public interventions: public finance, public
policy measures, enabling environments,

5. 5
The Role of the Private
Sector
The private sector is a key source for
climate finance and other relevant
investment flows (ECOFIN 2015)
Private sector finance is complementary
to, but not a substitute for public sector
finance (ECOFIN 2015)
The Paris Agreement aims to strengthen the
global response to the threat of climate
change, in the context of sustainable
development and efforts to eradicate
poverty, including by making finance flows
consistent with a pathway towards low
greenhouse gas emissions and climate-
resilient development (PA, Art. 2.1(c))

6. 6
Source: SCF, 2016 Biennial Assessment and Overview of Climate Finance Flows

7. Cases
1.Flemish Partnership water for
Development
2.Private Sector Facility of the Green
Climate Fund

8. 8
Flemish Partnership Water
for Development
Launched on World Water Day 2004
To contribute to Millennium Development
Goal 7c: “Halve, by 2015, the proportion
of the population without sustainable
access to safe drinking water and basic
sanitation”
Update to Sustainable Development Goal 6:
“Ensure availability and sustainable
management of water and sanitation for
all”

9. 9
Flemish Partnership Water
for Development
Network of cooperation between
Government of Flanders + local governments
Public water sector
Private (water) sector
Research institutes, universities and high
schools
NGOs and other non-profit organisations
Objectives
Demonstrate and apply Flemish water
expertise
Motivate partners to take part in
cooperation projects, responding on the
local partners’ questions and needs
Increase and optimal use of financial means
for water and sanitation projects

10. 10
Flemish Partnership Water
for Development
How does the Partnership work?
Becoming partner
Contribution, depending on characteristics
and possibilities
Call for proposals
Secretariat: communication – networking
What is the role of the private companies?
Capacity-building in different fields and
stimulating innovation
Exchange of expertise and know-how (N + S)
Corporate social responsibility realised in
concrete projects
Making employees proud
Involving employees (voluntary, financially,
making use of their expertise and know-how)

11. 11
Flemish Partnership Water
for Development
Results
> 130 organizations/partners are involved
All categories
website - matchmaking – helpdesk
78 projects in 24 countries
Direct effect “water” on more than 1 million
people
Direct effect “sanitation and hygiene” on more
than 800.000 people
Indirect effect on 9 million lives of the local
beneficiaries, authorities and institutions
21 promotor organizations, more than 90 partner
organizations
6,7 million EUR subsidized by the Government of
Flanders
1,8 million EUR = contribution of Flemish partners
Diversity in partnerships

12. 12
Green Climate Fund:
Private Sector Facility
Core activities of Green Climate Fund
(GCF)
Clean energy, energy efficiency, climate-
related innovation
Resilient infrastructure, products and
services for vulnerable communities
Agriculture, forestry, food, water security,
and ecosystems preservation
Enable the potential of the private sector
for clean energy and climate resilience
projects in developing countries
Set-up of the Private Sector Facility
(PSF) to fund and mobilise institutional
investors and leverage GCF’s funds to
encourage corporates to co-invest with the
GCF

13. 13
Green Climate Fund:
Private Sector Facility
How does the GCF’s Private Sector Facility
invest?
Use of flexible instruments (including debt,
equity, and guarantees)
In combination with concessional funding to
promote private sector investing by
De-risking investments, including foreign
exchange and investors’ default
Bundling small projects into portfolios,
providing scale and making them attractive to
institutional investors
Helping develop public-private partnerships for
infrastructure resilience companies

14. 14
Green Climate Fund:
Private Sector Facility
With which entities does the GCF engage?
Pension funds, insurance companies,
corporations, local and regional financial
intermediaries, and the capital markets
How to work with the GCF PSF?
By becoming accredited
Accreditation is a process following due
diligence which ensures our partners share
the same objectives as the Fund, and that
they have extensive experience and strong
financial and managerial infrastructure.

15. Private Sector Projects
Universal Green Energy Access Programme
Country GCF financing Accredited entity Financial instrument
Benin, Kenya, Namibia,
Nigeria,Tanzania
USD 80 million DB Equity and Grant
• USD 78.4M in equity and USD 1.6M in grant
• Enhancing local financial institutions’
knowledge of and appetite for the renewable
energy sector
• Crowd-in foreign and local private investors
into the field of sustainable energy access in
sub-Saharan Africa
• Emissions reduction of 50.6 million tCO2e

16. Private Sector Projects
KawiSafi Fund
Country GCF financing Accredited entity Financial instrument
Kenya and Rwanda USD 25 million Acumen Equity and Grant
• USD 20M in equity and USD 5M in grants for
technical assistance
• Universal access to energy for people at the
bottom of the pyramid
• Mobilization of private sector investors at scale
for investment in SMEs in East Africa
• Conversion of a social impact fund into a Green
Impact Fund
• Emissions reduction of 1.5 million tCO2

17. Thank you
PA: Paris Agreement: http://unfccc.int/paris_agreement/items/9485.php
ECOFIN, 2015: ECOFIN Council Conclusions:
http://www.consilium.europa.eu/en/press/press-releases/2015/11/10-conclusions-
climate-finance/
2016 BA: 2016 Biennial Assessment and Overview of Climate
Finance Flows:
http://unfccc.int/cooperation_and_support/financial_mechanism/standing_committee
/items/10028.php
Flemish Partnership Water for Development:
www.watervoorontwikkeling.be
Green Climate Fund: www.greenclimate.fund
Vicky Noens: vicky.noens@vlaanderen.be (international climate
finance)
Lieve Dillen: lieve.dillen@vlaanderen.be (Flemish Partnership
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