Mainstreaming private sector engagement across the GEF must be a long-term priority, according to the GEF-6 programming directions. Opportunities of GEF-6 potential engagements, taken from the focal area strategies, include:
- In Climate Change Mitigation, expanded efforts to engage private sector will include performance based instruments; risk reduction for clean energy and smart grid applications; and corporate alliances to promote energy efficient appliances; greening of the supply chain; and Sustainable Energy For All. GEF can play an important path-breaking role in demonstration of innovative business models and engagement approaches that can be picked up and expanded by other funding organizations, such as the Green Climate Fund.
- In Chemicals, opportunities include work with nascent corporate alliances to manage E-waste; expand private sector partnerships for disposal of PCBs; and develop partnerships on green chemistry that can develop new products and processes that reduce harmful by-products and toxic waste-streams.
- In Climate Change Adaptation, opportunities include support for enhanced climate risk assessment tools that can be used by private sector investors and insurance companies; supporting technologies and business models for adoption of climate/weather services and drought tolerant techniques and crops, for example, which can build capacity for smallholders to adopt Climate Smart Agriculture techniques. Expanding insurance access for countries vulnerable to climate change, such as Small Island Developing States and least developed countries, and working with agencies and developers to improve land-use planning could be explored.
- In Sustainable Forest Management, opportunities include the promotion of landscape restoration by addressing the lack of regulatory policy and enhancing awareness in partnership with all levels of industry. Another example is to promote the uptake of forest certification by capacity building in the underdeveloped markets, engaging across the entire supply chain from micro and SME producers to investment firms. GEF may also support the development of policy risk insurance for vulnerable REDD+ projects that could catalyze private sector investment.
- In Biodiversity, there are several opportunities including efforts to develop payment schemes for ecosystem services which will rely on proper policy development and capacity building for private sector actors. The strategy also identifies the need to expand utilization of certification which is hampered by inadequate finance, lack of awareness and under-developed markets. GEF interventions could include corporate alliances, enabling policy, and capacity building, engaging with private sector actors along the entire value chain. The strategy also identifies ideas for expanded engagement on the Nagoya Protocol (NP) where GEF support is rooted in the vision that obtaining access to genetic resources under the terms of the NP by the private sector can deliver monetary and non-monetary benefits to be shared with the providers of the genetic resources.
- In Land Degradation, opportunities exist to work with private sector partners to promote climate smart agriculture through capacity building for smallholders and SME; and potentially incremental financing/risk reduction for adoption of sustainable land management principles.
- In International Waters, there are numerous potentials for partnerships with large corporate actors, following the successful Globallast partnership with shippers and the International Maritime Organization. Another example is working with the private sector to promote innovative, market-based approaches fostering good fishing practices and fishery management on Large Marine Ecosystems (LMEs) and Areas beyond National Jurisdiction (ABNJ). Further, there is a good opportunity for engaging with the private sector players through joint investments in joint management of surface and groundwater along the entire supply chain.