Overview of accreditation
In deploying its resources, the Green Climate Fund will work through a wide range of institutions to finance projects and programmes. To access funding, these institutions will go through a process of “accreditation,” designed to assess whether they are capable of strong financial management and of safeguarding funded projects and programmes against any unforeseen environmental or social harm.
Organisations seen to have specialised capacities in driving climate action may apply to become GCF Accredited Entities. They can be private, public, non-governmental, sub-national, national, regional or international bodies. They should have clear, detailed and actionable climate change projects or programmes to present to GCF progressing mitigation and adaptation. They must also meet GCF standards based on financial standards, environmental and social safeguards, and gender.
Accredited Entities develop funding proposals to be considered by the Fund and oversee, supervise, manage and monitor their respective GCF-approved projects and programmes.
The accreditation process is also designed to assess whether applicant entities have the ability to manage GCF's resources in line with the Fund's fiduciary standards for the scale and type of funding sought, as well as the ability to manage environmental and social risks that may arise at the project level. Entities seeking accreditation to access GCF resources will also be assessed against the Fund’s Gender Policy.
Accredited Entities (AEs) carry out a range of activities that may include developing and submitting funding proposals for, and overseeing the management and implementation of, projects and programmes; deploying a range of financial instruments within their respective capacities (grants, loans, equity, and guarantees); and mobilising private sector capital.
There are two types of GCF Accredited Entities based on access modalities: Direct Access Entities and International Access Entities.
Direct Access Entities
Direct Access Entities are sub-national, national or regional organizations that need to be nominated by developing country National Designated Authorities (NDAs) or focal points.
Organizations nominated to become Direct Access Entities may be eligible to receive GCF readiness support. This funding is designed to help organizations in developing countries prepare to become Accredited Entities, as well as helping those which have already been accredited to strengthen their organizational capacities.
International Access Entities
International Access Entities can include United Nations agencies, multilateral development banks, international financial institutions and regional institutions. GCF considers these organizations to have the wide reach and expertise to handle a variety of climate change issues, including ones that cross borders and thematic areas.
International Access Entities do not need to be nominated by developing country NDAs / focal points.
The Accreditation Panel is an independent technical panel that provides the GCF Board with:
- technical advice on the results of the in-depth assessment and review of individual applications for accreditation;
- expertise in good-practice fiduciary principles and standards, financial intermediation functions, intermediation regulations and oversight;
- expertise in Environmental and Social Safeguards, as well as in evaluating environmental and social management systems in order to ensure that applicant entities have the capacity to implement and oversee GCF's ESS;
- expertise in international and recognised good practices in accreditation procedures and systems; and
- expert policy advice on developing countries’ special circumstances, including sustainability and climate-related issues.
The Panel will operate as a senior and independent technical advisory body of the Fund, and will report and be accountable to the Board. In conducting the review of applications for accreditation, the Panel may decide to make use of additional external technical experts. Members of the Panel will have a three-year term, with the possibility of renewal for a maximum of another consecutive term.