Throughout the year it became evident that GCPF’s innovative Public Private Partnership structure is a promising answer to the question on how to increase the available resources for climate change. Given the necessity of re-launching the economy whilst limiting public debt levels, governments are facing increasing difficulties to provide the required financial means. Joining forces with the private sector allows the Fund’s public investors to leverage their resources and to achieve their objectives more efficiently. At the same time, private investors are looking for new sustainable growth markets – such as clean energy investments in emerging and developing markets.
On the investment side however, the Fund could not escape the general economic conditions. The first part of the year was marked by strong US Dollar liquidity in emerging markets reducing the funding demand of potential partner institutions. An increased risk aversion gradually became more dominant, in turn enhancing the competitive positioning of the Fund. An overview of the current situation the Fund is facing in its target markets can be found in the Portfolio Analysis section of this report.
Despite these challenges, we firmly believe that everyone involved can be proud of the achievements of the past year. 2012 will probably continue to be marked by a volatile banking environment in which GCPF will hopefully continue to demonstrate that financing climate change and economic development can fi t very well together.