Sustainable cities
Sustainable cities
  • Sustainable cities

The Green Climate Fund has four financial instruments:

1. Grants - promoting investment in climate change; for example, adaptation activities in regions vulnerable to climate change, technical assistance and capacity building, feasibility studies and any additional investment costs necessary to ensure the viability of the project;

2. Concessional loans - concessional lending with or without low interest rates, a longer repayment period and / or a grace period; creating more favorable conditions than market ones;

3. Guarantees - mitigation of investment risks as an obligation, according to which the guarantor undertakes to fulfill the obligations of the borrower to the lender. The guarantee may cover the entire amount of the investment or part of it;

4. Equity investments - investing in a project or asset in order to affect debt and possibly get a higher return. This tool is used when projects have significant risks, but still there is a chance for success and profit for stakeholders.
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