1. Themes
  2. Private Finance
  3. Project Preparation and Business Development Facilities

Project Preparation and Business Development Facilities

Greater support for early project preparation, from a variety of sources, is critical to supporting low-carbon ideas and attracting greater volumes of private finance.

2030 Goals

01

Adjust the role of MDB and DFI financing in early project prep, moving from mezzanine investors to early, first loss tranches.

02

Adapt PDBs mandates to scale up technical assistance and readiness activities to address the mismatch in local capacity development and create an enabling environment that better facilitates the origination of bankable projects.

03

Address mismatch between credit rating preservation and risk appetite / perception to drive investments into early project preparation.

Status

Moderate Progress

There is general consensus for the need to enhance local capacity development, but only a small percentage of private actors are making progress.

High cost of capital limits investment in early stages of project development. Credit ratings continue to impact the cost of capital; EMDE PDBs therefore remain constrained in balancing high credit profiles with scaling climate finance.

Better enabling environments for investments are also critical, including creating support for EMDE corporates, subnational authorities, and sovereign projects to attract financing. While nascent, climate funds and development banks are increasingly focusing on funding and de-risking early-stage climate projects, particularly in emerging markets. These include GCF’s PPF supporting projects in LDCs and SIDs, the World Bank's support on preparing feasible projects in climate sensitive sectors, and EBRDs Green Cities program. High cost of capital limits investment in early stages of project development. Credit ratings continue to impact the cost of capital; EMDE PDBs therefore remain constrained in balancing high credit profiles with scaling climate finance.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Project Preparation and Business Development Facilities.

Private FIs

BlackRock (the Climate Finance Partnership)

Private FIs

HSBC

Public FIs

KfW (Germany)

Public FIs

Dutch Entrepreneurial Development bank (FMO)

Public FIs

Proparco

Multilateral Development Banks

Asian Development Bank (ADB)

Multilateral Development Banks

Asian Infrastructure Investment Bank (AIIB)

Multilateral Development Banks

European Bank for Reconstruction and Development (EBRD)

Multilateral Development Banks

European Investment Bank (EIB)

Multilateral Development Banks

Inter-American Development Bank (IDB)

Multilateral Development Banks

World Bank

International Organizations

Green Climate Fund

International Organizations

United Nations Capital Development Fund (UNCDF)

International Organizations

UN Habitat

Alliances

Cities Climate Finance Leadership Alliance (CCFLA)

Alliances

FiCS

Supportive Stakeholders

Global Infrastructure Facility

International Organizations

United Nations Industrial Development Organization (UNIDO)

International Organizations

Climate and Clean Air Coalition – Technical Expert Advisory Panel (CCAC-TEAP )

Alliances

Mission Efficiency (Secretariat: SEforAll)

Alliances

Private Infrastructure Development Group (PIDG)

Supportive Stakeholders

Solar Impulse Foundation

Learn More

Publications and educational material to deepen understanding of Project Preparation and Business Development Facilities.

CCFLA Project Preparation Action Group

Project Preparation and Business Development Facilities

The Project Preparation Action Group, supports CCFLA’s members in identifying, coordinating and accelerating existing Preparation Facilities (PPFs) for low-carbon and climate-resilient urban infrastructure projects.

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CCFLA Project Preparation Glossary

Project Preparation and Business Development Facilities

This glossary defines terms commonly used by Project Preparation Facilities or to describe project preparation activities.

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Project Preparation Facility, Green Climate Fund

Project Preparation and Business Development Facilities

The Green Climate Fund Project Preparation Facility (PPF) is a support mechanism that provides financial and technical assistance to help accredited entities prepare high‑quality climate project and programme proposals for GCF funding.

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Project Preparation and Implementation Support Trust Fund, ADB

Project Preparation and Business Development Facilities

The Project Preparation and Implementation Support Trust Fund (PPISTF) is a single-donor trust fund established in 2022. It provides technical assistance (TA) grants for project preparation to both non-sovereign and sovereign operations.

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Technical Assistance Hub

Project Preparation and Business Development Facilities

Technical assistance programs and global advocacy for stronger, sustainable finance.

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CCFLA Project Preparation Resource Directory

Project Preparation and Business Development Facilities

It is a directory that helps subnational governments and stakeholders identify project preparation facilities that can support them in developing green and resilient infrastructure, more efficient heating and cooling systems, building renewable energy, setting up sustainable transit, or climate-proofing resilient infrastructure.

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