Board decisions

The Board,

1. Requests the Co‐Chairs to consult with Board members and alternate Board members on the establishment of an Appointment Committee as a standing committee of the Board and to present, for consideration by Board, the outcomes of their consultations no later than the fifteenth meeting of the Board; and
2. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Requests the Co‐Chairs to undertake consultations with the Board on the first formal replenishment process of the Green Climate Fund, and present a report on the outcomes of these consultations to the Board no later than its fourteenth meeting;
2. Also requests the Co‐Chairs to present their initial observations on the first formal replenishment process at the thirteenth meeting of the Board;
3. Further requests the Secretariat to support the Co‐Chairs to prepare documentation related to the design and development of the first formal replenishment process; and
4. Requests the Secretariat to support the Co‐Chairs to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board, having considered the views of Board members contained in the document titled “Compilation of submissions ‐ simplified processes for approval of proposals for certain activities, in particular small‐scale activities”,1

1. Requests the Co‐Chairs to consult the Board with a view to presenting for consideration and adoption by the Board, the outcome of their consultations related to simplified processes for the approval of proposals for certain activities, in particular small‐scale activities, at its thirteenth meeting;
2. Also requests the Secretariat to support the Co‐Chairs in the preparation of the documentation related to the consideration by the Board of a simplified approval process; and
3. Requests the Secretariat to support the Co‐Chairs to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Requests the Co‐Chairs to consult with a view to presenting, for consideration by the Board, further options for decision‐making in the absence of consensus no later than its fifteenth meeting; and
2. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Requests the Co‐Chairs to consult with a view to presenting, for consideration by the Board, matters related to the guidelines to determine in which cases decisions may be taken without a Board meeting, no later than its fifteenth meeting; and
2. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Requests the Co‐Chairs to consult with a view to presenting, for consideration by the Board, the Travel policy of the Fund no later than its fourteenth meeting; and
2. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Requests the Co‐Chairs to consult with fellow Board members and alternate Board members, active observers and accredited observer organizations in relation to the comprehensive review of the participation of observers in the activities of the Board, with a view to presenting, for consideration by the Board, the terms of reference for this review no later than the thirteenth meeting of the Board;
2. Invites observer organizations to submit to the Secretariat views on the terms of reference for the review by 10 April 2016;
3. Requests the Secretariat to support the Co‐Chairs in the preparation of the terms of reference and to undertake the review for consideration by the Board at its fifteenth meeting; and
4. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

1. Decides to defer the annual review of financial terms and conditions to its sixteenth meeting, which will be held in 2017; and
2. Requests the Investment Committee to provide the draft terms of reference for the annual review for consideration by the Board at its fifteenth meeting.

The Board,

1. Decides to review the gender policy and gender action plan at its fifteenth meeting, which will be held in December 2016; and
2. Requests the Secretariat to provide the draft terms of reference of the review for consideration by the Board at its thirteenth meeting.

The Board,

1. Decides to defer its consideration of the policy regarding the cases in which the high‐level concessional terms and the low‐level concessional terms for public sector proposal will apply, no later than its sixteenth meeting, which will be held in 2017, noting that in the interim they will be applied on a case‐by‐case basis per decision B.09/04 and annex III to decision B.05/07;
2. Requests the Co‐Chairs to consult with Board members and alternateBoard members, the Risk Management Committee, the Investment Committee and external stakeholders, including accredited entities, in order to provide a recommendation based on lessons learned from the current application of financial terms and conditions, to the extent available, and in line with the set of guiding principles and factors for determining terms of financial instruments as outlined in annex III to decision B.05/07, for consideration by the Board at its fifteenth meeting; and
3. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board in line with the Rules of Procedure of the Board.

The Board,

Decides to defer the annual scaling review till 2017 and requests the Co‐Chairs to include this matter in the Work Plan for 2017.

The Board, having considered document GCF/B.12/16 titled “Performance review of the Executive Director, report from the Executive Director Performance Review Committee”,

Takes note of the documents titled “Summary report of the performance review of the Executive Director of the independent Secretariat of the Green Climate Fund”, “Lessons learned through the Executive Director performance review”, “360 degree feedback Report conducted by the independent firm” and “Executive Director self‐assessment (July 2013 to end‐December 2015)” shared as confidential documents with Board members and alternate Board members on the grounds that these documents contain personal information.

The Board, having considered document GCF/B.12/06 titled “Report on the development of the draft Strategic Plan for the Green Climate Fund: Submission from the ad hoc group of Board/Alternate members”,

1. Endorses the Strategic Plan for the Green Climate Fund, which is a living document, as contained in annex I, as the initial GCF Strategic Plan to guide the Board in addressing policy gaps and programming the Fund’s resources of the Initial Resource Mobilization period between 2015 and 2018 and to invest the Fund’s resources in transformational climate actions in a country‐driven manner;
2. Resolves to swiftly implement the Strategic Plan in order to meet the Board’s aspirational approvals target for 2016 and to scale up the Fund’s investments in ambitious climate action;
3. Requests the Secretariat, under the Co‐Chairs’ guidance, to integrate the operational priorities and action plan included in the Strategic Plan in the Work Plan for 2016, and subsequent Work Plans;
4. Requests the Secretariat to take all steps necessary to implement the action plan in a gender‐responsive manner, and report at each Board meeting on progress achieved;
5. Notes that the implementation of the operational priorities and action plan will be guided by the Governing Instrument for the GCF, including the objective and principles laid out therein;
6. Requests the committees, panels and groups of the Board to include the actions outlined in the Strategic Plan in their respective deliberations and work programmes, as appropriate, throughout the Initial Resource Mobilization period, and to present these work programmes for consideration at the thirteenth meeting of the Board;
7. Acknowledges that the strategic priority matters as expressed by Board members during the discussion at the twelfth meeting of the Board, which will be recorded, will be considered in the course of the implementation of the Strategic Plan, and urges the Co‐ Chairs, committees, groups and panels, and the Secretariat to consider these matters;
8. Welcomes the decision reached at the twenty‐first session of the Conference of the Parties that the GCF, as an operating entity of the Financial Mechanism of the Convention, will serve the Paris Agreement;
9. Requests the Secretariat to present, for consideration by the Board at its thirteenth meeting , a proposal on how the Fund could support the implementation of the Paris Agreement and related decisions of the Conference of the Parties; and
10. Decides to review the Fund’s Strategic Plan as part of each replenishment process with a view to revising the strategic vision, if and as needed, and to update the core operational priorities and underlying action plan for the coming replenishment cycle, taking into account evolving priorities, including guidance from the Conference of the Parties and relevant reports from the independent evaluation unit.

The Board,

1. Takes note of the report of the Accreditation Committee on its progress to develop a strategy on accreditation, as contained in annex II; and
2. Decides to defer its consideration of the strategy on accreditation to the thirteenth meeting of the Board.

The Board, having reviewed the proposition of the Executive Director Selection Committee,

1. Notes the decision of the Executive Director to complete her current term in office, and not to seek an appointment for the second term at the end of the three‐year term;
2. Acknowledges with appreciation the contributions of the Executive Director to the establishment of the Fund’s Secretariat at its headquarters in Songdo, Republic of Korea, and the operationalization of the Fund, including the significant role of the Executive Director in the Initial Resource Mobilization process; and looks forward to working with the Executive Director until the completion of her term;
3. Requests the Co‐Chairs to agree a set of objectives with the Executive Director to cover the remainder of the term, and to share them with the Board;
4. Establishes the ad hoc Executive Director Selection Committee as an ad hoc committee of the Board in accordance with paragraphs 2(g) and 30 of the Rules of Procedure of the Board;
5. Adopts the terms of reference of the Executive Director Selection Committee as set out in annex III;
6. Requests the Executive Director Selection Committee to develop a performance framework for the Executive Director;
7. Appoints as members of the Executive Director Selection Committee:
   1. Mr. Omar El‐Arini;
   2. Mr. Anton Hilber;
   3. Ms. Caroline Leclerc;
   4. Mr. Leonardo Martinez‐Diaz;
   5. Mr. Jorge Ferrer Rodriguez; and
   6. Mr. Ayman Shasly;
8. Adopts the updated terms of reference of the Executive Director as set out in annex IV;
9. Adopts the selection process for the Executive Director as set out in annex V;
10. Takes note of the indicative timeline of the entire process for the appointment of the Executive Director as set out in annex VI;
11. Decides to engage the services of an independent executive search firm to support the Executive Director Selection Committee;
12. Endorses the terms of reference of the independent executive search firm as set out in annex VII; and
13. Approves a budget increment for 2016 for the selection of the Executive Director, including the costs of the independent executive search firm as set out in an annex, which has been shared as limited distribution.

The Board,

1. Requests the Secretariat to review the initial proposal approval process taking into account the views expressed at the twelfth meeting of the Board, and to present, for consideration by the Board at its fifteenth meeting, the outcome and recommendations from the review; and
2. Invites submissions, no later than 10 April 2016, from Board and alternate Board members, observers, accredited entities, national designated authorities/focal points, and delivery partners, in relation to the review and in accordance with decision B.11/11, paragraph (j), as well as paragraphs (c) and (d).

The Board, having considered document GCF/B.12/Inf.06/Add.02 titled “Progress and outlook report of the Readiness and Preparatory Support Programme – addendum project preparation funding application”,

1. Takes note of the project preparation funding application for the Rural Green Economy and Climate Resilient Development Programme (by the Ministry of Natural Resources of Rwanda), as contained in document GCF/B.12/Inf.06/Add.02;
2. Also takes note of the assessment of the Secretariat in accordance with decision B.11/11, paragraph (l); and
3. Approves the amount of USD 1.5 million in grants for the project preparation of the programme titled “Rural Green Economy and Climate Resilient Development Programme”, submitted by the Ministry of Natural Resources of Rwanda.

The Board,

1. Requests the Secretariat to present a document, taking into consideration the views expressed by the Board at its twelfth meeting, on matters related to the scope and functioning of the Project Preparation Facility, for consideration and adoption by the Board at its thirteenth meeting; and
2. Notes that the Board will consider applications under the Project Preparation Facility once the guidelines are adopted.

The Board,

Decides to defer its consideration of the Communication strategy of the Fund to the thirteenth meeting of the Board.

The Board having considered document GCF/B.12/15 titled “Revised administrative budget and staffing of the Secretariat for 2016”,

1. Notes that the current workload is being carried out by a complement of 56 regular Secretariat staff and approximately 33 long‐term consultants, and acknowledges that this situation is unsustainable and should be addressed as a priority;
2. Further notes the need to increase the number of regular staff in the Secretariat to an approximate total of 100 by the end of 2016 and to further increase to a total of approximately 140 by the end of 2017, taking into consideration the ability of the Secretariat to recruit and absorb the increasing staff numbers, following the appropriate processes;
3. Requests the Secretariat to consider filling new positions with internal candidates where appropriate, on a priority basis;
4. Approves the following amounts additional to the approved administrative budget in decision B.11/08:
   1. USD 4,351,993 for staffing;
   2. USD 1,562,855 in ancillary non‐staff costs; and
   3. USD 772,640 for the administrative budget of the Board;
5. Notes that now the total administrative budget for 2016 will be USD 35,844,715, and takes note of the budgetary implications for future years;
6. Recognizes the need for further guidance from the Board on some of the Secretariat’s functions, inter alia, the appropriate level of due diligence for project proposals, and rationalization and streamlining of processes;
7. Requests the Secretariat to provide a revised version of the annual presentation of the staffing structure to inform the Budget Committee, in its review and recommendations on budget implications for 2017 and 2018, by the thirteenth meeting of the Board;
8. Also requests the Budget Committee to consult with the Secretariat and make recommendations on the administrative budgets for 2017 and 2018 by the fourteenth meeting of the Board;
9. Authorizes the Secretariat to enter into contractual obligations, from the approved budget, to ensure the continuation of the operations of the Fund beyond the current financial period; and
10. Agrees that for new decisions with additional budgetary implications, which may be taken at future Board meetings, the corresponding amounts will be considered by the Board to be added to the approved administrative budget.

The Board, having reviewed document GCF/B.12/14 titled “Status of the Initial Resource Mobilization process”,

1. Endorses that contributions pledged within, as part of, the Initial Resource Mobilization period, may be paid up to and including 2020; and
2. Also endorses (i) the terms specified in paragraph 6.4, and (ii) the payment schedule specified in paragraph 6.3 of the contribution agreement among the Kingdom of Spain, the Green Climate Fund and the International Bank for Reconstruction and Development, serving as the Interim Trustee of the Green Climate Fund Trust Fund, dated 6 January 2016 as contained in annex VIII.

The Board, having reviewed document GCF/B.12/12 titled “Status of the Initial Resource Mobilization process: loan agreement/arrangement”,

1. Confirms the terms of the Loan Arrangement among the Government of Canada, the Green Climate Fund and the International Bank for Reconstruction and Development, serving as the Interim Trustee of the Green Climate Fund Trust Fund, dated 9 December 2015 as contained in annex IX; and
2. Also confirms the terms of the Loan Agreement among Agence Française de Développement, acting on behalf and at the risk of the French Government, the Green Climate Fund and the International Bank for Reconstruction and Development, serving as the Interim Trustee of the Green Climate Fund Trust Fund, dated 9 December 2015 as contained in annex X.

The Board, having considered document GCF/B.12/07 titled “Consideration of accreditation proposals”,

1. Takes note with appreciation of the in‐depth assessment conducted by the Accreditation Panel contained within the relevant annexes for the following applicants:
   1. Applicant 021 (APL021) is the Agency for Agricultural Development of Morocco (ADA) based in Morocco, as contained in annex XI;
   2. Applicant 022 (APL022) is the Ministry of Finance and Economic Cooperation of the Federal Democratic Republic of Ethiopia (MOFEC) based in Ethiopia, as contained in annex XII;
   3. Applicant 023 (APL023) is the National Environment Management Authority of Kenya (NEMA) based in Kenya, as contained in annex XIII;
   4. Applicant 024 (APL024) is the Development Bank of Southern Africa (DBSA) based in South Africa, as contained in annex XIV;
   5. Applicant 025 (APL025) is the Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) headquartered in France, as contained in annex XV;
   6. Applicant 026 (APL026) is the HSBC Holdings plc and its subsidiaries (HSBC) headquartered in the United Kingdom of Great Britain and Northern Ireland, as contained in annex XVI;
   7. Applicant 027 (APL027) is the African Development Bank (AfDB) headquartered in Côte d’Ivoire, as contained in annex XVII;
   8. Applicant 028 (APL028) is the European Investment Bank (EIB) headquartered in Luxembourg, as contained in annex XVIII;
   9. Applicant 029 (APL029) is the International Finance Corporation (IFC) headquartered in the United States of America, as contained in annex XIX;
   10. Applicant 030 (APL030) is the Unidad Para el Cambio Rural (Unit for Rural Change, UCAR) based in Argentina, as contained in annex XX;
   11. Applicant 031 (APL031) is the International Union for Conservation of Nature (IUCN) headquartered in Switzerland, as contained in annex XXI;
   12. Applicant 032 (APL032) is the World Food Programme (WFP) headquartered in Italy, as contained in annex XXII; and
   13. Applicant 033 (APL033) is the World Meteorological Organization (WMO) headquartered in Switzerland, as contained in annex XXIII;
2. Accredits APL021, APL022, APL023, APL024, APL025, APL026, APL027, APL028, APL029, APL030, APL031, APL032 and APL033 pursuant to paragraph 45 of the Governing Instrument for the GCF, and subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annexes for each of the applicant entities. A summary of the recommended accreditation type and conditions and remarks, if any, for each applicant is contained in annex XXIV;
3. Recalling decision B.10/06, paragraph (j), and decision B.11/10, annex I, paragraph 35, the Board underlines its expectation that accredited entities will advance the goal of the GCF to promote the paradigm shift towards low‐emission and climate‐resilient development pathways in the context of sustainable development, which includes shifting their overall portfolios in line with this direction;
4. Requests the Accreditation Panel, with the support of the Secretariat as necessary, to establish a baseline on the overall portfolio of accredited entities, including those already accredited at an earlier stage, that allows for an assessment of the extent to which the accredited entities' overall portfolios of activities, beyond those funded by the GCF, have evolved in this direction during the accreditation period;
5. Notes that the Accreditation Panel has recommended the accreditation of applicant 26 and further notes that in its review the Accreditation Panel identified a potential information gap associated with the implementation of its Global Standards programme, which overviews the applicant's progress in implementing stronger anti‐money laundering and sanctions compliance mechanisms (Global Standards);
6. Requests that the Accreditation Panel review prior to the fourteenth and sixteenth meetings of the Board, the applicant's progress in implementing its Global Standard, including a review of material external information. Further requests that the Accreditation Panel report to the Board on whether the results of these reviews would alter its recommendation to accredit the applicant;
7. Approves the accreditation of applicant 26 subject to the condition that the Board has the ability to temporarily or permanently suspend the applicant's accreditation based on the recommendation of the Accreditation Panel following its reviews;
8. Takes note that the process outlined for applicant026 applies only in this case, without prejudice to further decisions;
9. Takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast‐track accreditation process be extended to those entities listed in annex XXV; and
10. Decides that those entities referred to in annex XXV are also eligible to apply under the fast‐track accreditation process for the standards of the GCF in accordance with decision B.08/03, paragraph (f), for entities accredited by the Adaptation Fund, and decision B.08/03, paragraph (g), for entities under the Directorate‐General for International Development and Cooperation of the European Commission (DG DEVCO).

The Board, having reviewed document GCF/B.12/23 titled “Template Accreditation Master Agreement”:

1. Takes note of the information provided by the Secretariat in document GCF/B.12/23 and of the progress made to date by the GCF in engaging with accredited entities on the execution of Accreditation Master Agreements;
2. Considers the template Accreditation Master Agreement as set out in annex XXVI adequate for completing stage III of the accreditation process;
3. Acknowledges that substantive changes from the template Accreditation Master Agreement may be necessary on a case‐by‐case basis as a consequence of negotiations with accredited entities, which will each have unique circumstances and requirements that may need to be taken into account. The Accreditation Master Agreement template should be considered flexible enough to ensure executed Accreditation Master Agreements are fit for purpose;
4. Requests the Executive Director to regard the template Accreditation Master Agreement as the basis for negotiations with accredited entities. The Executive Director will determine, in consultation with the risk and legal teams, and the Risk Management Committee, whether or not a change is considered substantive on a case‐by‐case basis, and would require Board approval;
5. Decides to approve the policy guidance, to be deemed substantive under paragraph (d) above in respect of Accreditation Master Agreements as set out in annex XXVII;
6. Requests the Executive Director, as a matter of urgency, to prioritize the execution of Accreditation Master Agreements with those entities accredited by the Board, and to remain in regular communication with the Co‐Chairs between formal meetings on progress made to that end;
7. Affirms the importance and urgency for the Fund to have adequate policies addressing fraud, corruption and other prohibited practices and policies addressing anti‐money laundering and countering the financing of terrorism;
8. Decides to adopt the General Principles on Prohibited Practices, as presented in Exhibit A of the template Accreditation Master Agreement, as the Fund’s interim policy on prohibited practices to be observed by accredited entities, and readiness partners;
9. Requests the Risk Management Committee, with the support of the Secretariat, to further develop the Fund’s Policies on prohibited practices for consideration by the Board at its fourteenth meeting;
10. Also requests the Risk Management Committee, with support of the Secretariat, to develop processes and tools to implement the Fund’s interim policy, taking into account staffing and resources; and
11. Notes that the Secretariat has been mandated to pursue, as a matter of urgency, entering into bilateral agreements with countries in which the Fund operates on privileges and immunities reflecting prudent international practice, consistent with decision B.08/24 and the guidance of the Conference of the Parties in United Nations Framework Convention on Climate Change decision 7/CP.20, paragraph 21.