For a Paradigm Shift in Climate Finance, New Perspectives and Mechanisms are Key
Climate change stands as a fundamental threat to human existence. There is clear demand for new and innovative perspectives on, and solutions to, this problem. One of these innovations is the Green Climate Fund (GCF), which works through a variety of entities, subnational, national, regional and international, public and private.
Developing countries seek to access GCF’s resources to finance projects and programmes that drive low-emission and climate-resilient development pathways. Accreditation to the Fund is paramount to this end, as it is through the joint work of National Designated Authorities (NDAs) and accredited entities that a developing country’s projects and programmes are proposed, with accredited entities channelling funding for such projects.
Thirteen new entities were accredited to GCF at the tenth Board meeting in early July. This was the outcome of a series of intensive open and executive sessions in which the Board deliberated on each entity individually, with objective judgment in line with the Fund’s rigorous accreditation criteria. During the course of the executive session, the Board decided to add specific requirements for certain applicants in order to ensure their activities align with the mandate of the Fund, and that they will maintain the highest standards.
A decision was taken on each candidate separately. There is significant depth and breadth of the process by which the unique qualities and circumstances of each candidate are evaluated – by both the Board and GCF’s Accreditation Panel. Candidate entities deserve due recognition of the intensive process undergone in seeking their accreditation and their willingness to become part of the solution to climate change by working with GCF.
The Co-Chairs fully trust the Fund’s Accreditation Panel and Board decisions regarding accreditation. The Board will contribute to further improve the quality of the process and the high standards of its due diligence procedures.
Twenty entities are now accredited to GCF, and many others are working towards accreditation. We have built a solid foundation that will be expanded and strengthened as expertise is gained from experience. For instance, the Fund is currently developing a monitoring and accountability framework for its accredited entities. This framework will set a five-year accreditation term. At the end of each period entities will be subject to satisfactory reviews and compliance checks as a condition for renewal by the Board. We trust NDAs and other stakeholders were able to contribute to this invitation for inputs. Their views, proposals, and support are critical to shape this fundamental framework, and the Fund’s processes in general. Also, direct access is being actively promoted by requiring that international accredited entities indicate in which ways they will strengthen the capacities of subnational, national, or regional entities in order for them to meet accreditation requirements and enhance country ownership.
Furthermore, the Board has decided to discuss how to enhance the transparency of the process, how to engage the public more actively in the Fund’s activities, as well as the need for public inputs in shaping such efforts at large. Moreover, it has decided to start discussions on an overall accreditation strategy and to consider additional policies that would strengthen the Fund’s fiduciary standards, taking into account international best practices and standards.
Like GCF, all entities accredited to the Fund have made a commitment to climate change action, using it to define their direction and course. For them, this constitutes a paradigm shift in both words and actions.
Henrik Harboe and Gabriel Quijandría Acosta
Co-Chairs of the Board
Co-Chairs of the Board