This makes it imperative to understand the early efforts of Japan and other donors in mobilising private sector engagement in climate compatible development (CCD), and identify key trends.
In the absence of agreed definitions for private finance activities in the climate finance literature and community of practice, this Background Note proposes a definition for Private Climate Finance Support (PCFS) and reviews interventions by Japanese actors to mobilise private sector activity.
It finds that Japan has a number of channels and instruments through which it supports private sector action on climate change. The country’s private climate finance support (PCFS) is often linked to programmes that are either co-financed by Japanese financial institutions, or that use Japanese technology or expertise. It is also tailored to the market conditions of recipient countries, and has an overwhelming focus on climate change mitigation, rather than adaptation.