The GCF is mandated to take a leading role in promoting private sector support for climate finance in developing countries. This evaluation assesses the relevance and effectiveness of the GCF’s approach to the private sector. Its findings may contribute to the GCF’s work on developing a private sector engagement strategy. The evaluation’s key recommendations include:

• Enhancing the speed and transparency of GCF operations to align with private sector needs for efficiency and predictability
• Ensuring private sector projects are country-owned
• Creating institutional and organizational structures that operationalize direct and indirect finance for private sector activities
• Prioritizing funding to Micro-, small- and medium-sized enterprises, exploring access modalities and instruments for decentralized climate actions
• Expanding the GCF’s focus on financial instruments and support mechanisms that encourage private sector investment in adaptation