UN Climate Fund Measures Can Boost Capital Sevenfold, BofA Says
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The United Nations Green Climate Fund will probably be able to leverage some of its capital sevenfold with private-sector cash under measures aimed at reducing risks for investors, according to Bank of America Corp.
The GCF board agreed to allow instruments such as loan guarantees and grants covering initial losses as a way to make emission-cutting projects attractive to the private sector, said Abyd Karmali, head of climate finance at BofA Merrill Lynch in London, who attended the fund’s board meeting last month in Songdo, South Korea. GCF’s 24 members from developing and developed nations still have to sign off on the measures.