CO-FINANCING MECHANISMIs a practice in which multiple agencies finance the same project. Climate Co-Finance is the amount of financial resources contributed by the external entities along with climate finance invested by Multilateral Development Banks (MDBs). The financial resource providers include, among others, government or government-affiliated institution as well as the private sector, which are in the form of trust funds and international climate funds managed by MDBs. Co-financing is an essential component of the Green Climate Fund.
Source: Brookings Institution