Project approval process - Project cycle - 4. Funding proposal development

Stage 4 covers the development and submission of funding proposals (FPs) by Accredited Entities (AEs). FPs must be prepared in accordance with the considerations and requirements of the investment framework and results management framework. AEs are expected to demonstrate how they will deliver their proposed project activities and results areas with reference to these policy frameworks.

AEs are responsible for the first-level due diligence of FPs. Project/programme appraisal by the AE involves an in-depth evaluation of the proposed activities and interventions to meet the GCF investment criteria and achieve the desired climate mitigation and/or adaptation results. This helps the AE to determine whether the proposed project/programme offers an effective solution to address the identified problem, and whether it is technically, financially, economically, environmentally and socially sound and cost-effective.

When preparing FPs, AEs must work within their accreditation scope which defines the allowed financing modalities and project size and identifies the environmental and social safeguards (ESS) risk categories.

FPs submitted to GCF must be accompanied by no-objection letters (NOL) from respective NDAs/focal points. These NOLs ensure that the proposed funding proposal is consistent with country-driven approaches and national climate strategies and plans, and signal their support.

FPs must also present the implementation arrangements through Executing Entities (EEs). AEs may act as EEs or may carry out the project/programme with one or more EEs. AEs are responsible for determining, selecting, and engaging EEs based on their due diligence and other assessments required. GCF does not enter a direct contractual relationship with EEs.

FPs must be submitted through GCF Partner Portal (GPP) platform. Upon receipt of the funding proposal, the Secretariat performs an initial review and completeness check. Furthermore, all activities will be disclosed to GCF stakeholders with regard to GCF’s Information Disclosure Policy.