As GEF-7 negotiations approach, this third comprehensive study of private sector engagement assesses how effectively GEF mobilizes private finance for environmental benefits.

Conducted as part of OPS6, it reviews 460 projects from GEF-4 to GEF-6, totaling $2.5 billion in GEF funding and $20 billion in cofinancing. Using portfolio analysis, terminal evaluations, surveys of private sector stakeholders, and benchmarking against peers such as the Green Climate Fund and the Climate Investment Funds, the study examines GEF’s role in catalyzing investment.

The evaluation finds that GEF most frequently advances private sector engagement by reforming policy and regulatory environments, building institutional capacity, and providing technical assistance, while nongrant instruments deliver the strongest leverage, with each GEF dollar mobilizing $10 in cofinancing.

Yet outreach to firms remains weak, systematic tracking of private sector projects in the database is inadequate, and engagement is concentrated in climate change with limited activity in biodiversity, chemicals, and land degradation.

The report recommends creating a private sector window, extending engagement into underrepresented focal areas, strengthening communication with firms and Agencies, improving tagging and monitoring systems, and promoting regulatory reforms that enable private investment.