The Green Climate Fund (GCF) was set up as a consequence of the Paris climate negotiations to be an operating financial entity of the United Nations Framework of the Climate Change Convention. The Green Climate Fund has a unique mandate in that unlike other climate funds, it can work directly with national agencies and sub-national agencies so long as these are endorsed by national governments. Despite this, the GCF has channeled its fund predominantly through large international firms and multilateral organisations. This has meant fewer risks in entering the unpredictable market for climate investments where both bilateral and multilateral agencies compete to fund the most innovative projects. With its first replenishment, the GCF has the opportunity to use its experience and invest in innovative staff and projects. What can we learn from institutional economics on how this may be done?