The private sector set-aside process of the Strategic Climate Fund (SCF) is an ambitious mechanism designed to increase private sector investment through competitive allocation of concessional funding to projects within the Forestry Investment Program (FIP), Pilot Program for Climate Resilience (PPCR) and Scaling-Up Renewable Energy Program (SREP). The set-asides arose in response to challenges in delivering private sector projects in the SCF through the investment plan (IP) process, where public sector projects are often preferred.
Approximately USD 175 million in concessional funds was allocated through the private sector set-asides of the FIP, PPCR, and SREP designed to spur innovation and flexible delivery. In the FIP, concessional funds were set aside to contribute to the financing of innovative programs and projects that engage the private sector in reducing emissions from deforestation and forest degradation and promote sustainable forest management. In the PPCR, funds were set aside to contribute to financing for innovative programs and projects that engage the private sector in activities associated with reducing countries’ exposure to climate risk and uncertainty. In SREP, funds were set aside for projects working to engage the private sector in piloting and demonstrating the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy.
The first round of competitive funding was completed in 2013 for each program, and PPCR and SREP completed a second round between January and June 2014.
For more information on approved PSSA projects, visit: Projects - PSSA.
- Brazil: Macauba palm oil in silvicultural systems, (IDB)
- Brazil: Commercial reforestation of modified lands in the Cerrado, (IFC) (dropped)
- Burkina Faso: Climate change mitigation and poverty reduction through the development of the cashew sector, (AfDB)
- Ghana: Public-private partnership for restoration of degraded forest reserve through VCS and FSC certified plantations, (AfDB)
- Mexico: Guaranteed fund for financing low carbon forestry investments, (IDB)
- Enhancing the Climate Resilience of the Energy Sector, (EBRD) in Tajikistan
- Small business climate resilience financing facility,(EBRD) in Tajikistan
- Support for the building of a climate resilient sorghum supply chain, (IDB) in Haiti
- Financing water adaptation in Jamaica’s new urban housing sector, (IDB) in Jamaica
- Lurio Green Resources Forestry Project, (AfDB) in Mozambique
- Supporting climate resilient investments in the agricultural sector, (IDB) in St. Lucia
- Financial Risk Management for Climate Resilience in the Agricultural Sector (IDB) in Bolivia
- Integrated Climate-Resilient Rice Value Chain Community Project (ADB) in Cambodia (dropped)
- Rainwater Harvesting and Drip Irrigation for High-Value Crop Production (ADB) in Cambodia
- Microfinance and Climate Resilience for Smallholder Farmers in Bolivia (IDB) in Bolivia
- Building Climate Resilience in Small Livestock Producers in the Bolivian Chaco Region (IDB) in Bolivia
- Inclusive Finance to Improve Climate Resilience of Bolivian Agricultural Producers (IDB) in Bolivia
- Olkaria VI Geothermal Power Plant, (AfDB) in Kenya
- Climate Venture Facility (KCFV) Project, (IBRD) in Kenya
- Self-supply RE Guarantee Program, (IDB) in Honduras
- Honduras: Strengthening of the ADERC H-REFF, (IDB)
- Mali: Scatec Solar PV 33 MW, (AfDB)
- Kenya: Kopere Solar Park, (AfDB)
- Nepal: ABC Business Models for Off-Grid Energy Access, (IBRD)