This project is a Green Climate Fund (GCF) regional readiness initiative that encompasses Jordan, Iraq, Lebanon, Oman, and Palestine. It seeks to address key obstacles hindering private sector engagement in climate finance across the region. These challenges include the absence of a conducive environment for private sector investment, limited awareness of climate finance opportunities, and insufficient capacity to develop financially viable green projects.

The five identified countries currently lack the required knowledge and capacity to address their climate finance gaps and overcome key identified barriers to private sector engagement as a result of ineffective guidelines and policy direction. This readiness support will provide clear policy guidelines and tools to enhance public-private partnership engagement in climate action and increase knowledge and capacity in the GCF programming process.

Given the commonalities in readiness capacity gaps and barriers concerning private sector engagement among these countries, the approach offers a cost-effective avenue for systematically increasing public-private partnerships through GCF programming to galvanize private investment into low-emission and climate-resilient pathways in a highly integrated manner. The beneficiaries of this project will be mainly private sector direct access applicants, potential future DAEs, EEs, NDAs, and other relevant policy actors, especially those involved in private sector support and public-private partnerships.

The project aims to improve the capacity of private sector institutions and create an enabling environment for increased private sector investment in climate finance across Iraq, Jordan, Lebanon, Oman, and Palestine. It seeks to overcome barriers to private sector engagement by developing public-private partnerships, enhancing climate finance readiness, and supporting gender and social inclusion in climate actions.

It is expected to benefit key stakeholders, including the National Designated Authorities (NDAs), Direct Access Applicants (DAAs), and Executing Entities (EEs), by improving their capacity to develop climate-resilient and low-emission projects, ultimately strengthening regional and public-private collaboration.

The MENA region faces severe climate-related challenges, including water scarcity, ecosystem degradation, and vulnerability to disasters such as floods, droughts, and heatwaves. Fourteen of the world’s most water-stressed countries are in this region, where annual internal water resources make up only 6% of total precipitation, compared to the global average of 38%. Rapid urbanization, population growth, and political instability exacerbate these issues, placing further pressure on already strained natural resources and ecosystems. While the region has attempted climate mitigation and adaptation efforts, private sector engagement has been limited, largely due to an insufficient enabling environment, a lack of investment incentives, and inadequate policy frameworks.

Recognizing the critical need for greater private sector involvement, this project aims to overcome the barriers preventing private sector investment in climate finance. By improving institutional capacities, developing public-private partnerships, and fostering gender and social inclusion, the project seeks to unlock private sector potential in contributing to low-emission and climate-resilient development. Through a regional approach, the project will leverage synergies among the five countries, promoting shared learning and collaboration while addressing the unique challenges they face in meeting climate goals and building a more sustainable future.

The project is expected to deliver several key outcomes that enhance private sector engagement in climate finance across Iraq, Jordan, Lebanon, Oman, and Palestine. First, the project will improve the capacity of at least five private sector entities to become accredited as Direct Access Entities (DAEs) with the GCF, enabling them to develop and manage climate finance projects. Additionally, it will lead to the creation of new public-private partnerships that support low-emission and climate-resilient investments. These partnerships will help address barriers to private sector engagement and enhance access to climate finance.

By improving the institutional capacity of National Designated Authorities (NDAs) in the five countries, the project will ensure the successful development of at least three new climate finance concept notes (CNs), supporting investments in key areas such as renewable energy, water security, and sustainable agriculture. Overall, the project will enhance climate finance access, foster inclusive economic growth, and promote sustainable development across the region.