pg. 15: the creation of: regional, public-private climate investment funds [bold in the original] that leverage large-scale private institutional capital flows into low-carbon energy systems in developing countries through the scaled application of the public finance and risk mitigation tools of development finance .
Readers' Guide Comment on “scaled application of public finance” institutions
Following the UNFCCC Conference of Parties decision in Cancun (2010), the idea of a public-private climate investment vehicle was created at the Durban Conference of Parties in 2011. The existence of the UNFCCC Green Climate Fund, as it is now called, provides a clear-cut example of how strictly intergovernmental arrangement under the auspices of the UNFCCC, with support from the World Bank, the IMF and other multilateral development banks, can yield progress on climate change without private ‘coalitions of the willing and able.’
The benefit of establishing a climate fund system under intergovernmental supervision is that it is not completely dependent on the profitability of the project and the expected short-term returns of individual investors. Government leadership implies also a greater likelihood of accountability for a project’s successes and failures and for a proper geographic balance between beneficiaries.
The Readers' Guide welcomes comments with alternative examples or counter examples, supplemental assessments of the extracted GRI text or commentary – critical or otherwise – of the above interpretation of GRI’s perspective.