Boardroom

The Board, having reviewed document GCF/B.08/04 Policy on Fees for Accreditation of the Fund:

1. Approves the policy on fees for accreditation of the Green Climate Fund set out in Annex VI; and
2. Requests the Secretariat to initiate, no later than three years from the date of approval of the policy, a review, based on lessons learned, of the policy on fees for accreditation of the Fund.

The Board, having reviewed document GCF/B.08/05 Relevant International Private Sector Best-Practice Fiduciary Principles and Standards and Environmental and Social Safeguards:

1. Recalls decision B.07/02 in which the Board decided to adopt the initial guiding framework for the Fund’s accreditation process as contained in Annex I to document GCF/B.07/11, recognizing that it also applies to private sector entities;
2. Reaffirms that the fiduciary standards and environmental and social safeguards (ESS) will apply to all applicant entities, regardless of their public or private sector status;
3. Invites institutions with a track record of engaging with the private sector, in particular those in areas that are relevant to the Fund’s objectives, to apply for accreditation to the Fund; and
4. Requests the Secretariat, in consultation with the Accreditation Panel, to provide recommendations on their potential accreditation or fast-tracking for decision by the Board at its first meeting in 2015.

The Board, having reviewed document GCF/B.08/06 Application Documents for Submissions of Applications for Accreditation and recalling decision B.07/02, paragraph (r):

1. Adopts the content of the application for accreditation to the Green Climate Fund set out in Annex VII;
2. Requests the Secretariat to finalize the relevant accreditation application documents and open a call for submissions of accreditation applications from implementing entities and intermediaries within four weeks after the eighth meeting of the Board, and use best efforts to have applications ready for consideration and possible decision on accreditation by the Board at its ninth meeting; and
3. Requests the Secretariat, recognizing that applications and supporting information will be initially submitted in English, to work on a way to allow for the submission of applications in other United Nations official languages with due consideration of implications in terms of cost and complexity.

The Board, having considered GCF/B.08/07 Further Development of the Initial Results Management Framework,

Regarding agenda item 7 (a), (f) and (g):

1. Adopts the proposed mitigation and adaptation performance measurement frameworks (PMFs) as outlined in Annex VIII, that decides on certain indicators as identified, and takes note of other indicators that require further refinement;
2. Requests the Secretariat to further develop those indicators that need refinement for Board consideration;
3. Takes note that the Secretariat will further develop methodologies for the indicators in consultation with the relevant experts and thematic bodies and will refine them as necessary based on experience gained and lessons learned over time;
4. Takes note that the Secretariat will further develop the PMF’s gender-sensitive approach;
5. Affirms that any national, economic, and sector-wide indicators will be used only at the discretion of the recipient countries;
6. Takes note of the initial approach to the monitoring and evaluation policy contained in Annex IX;
7. Reiterates that the Fund, as a continuous learning institution, will maintain the flexibility to refine its PMFs, including indicators;

Regarding agenda item 7 (c), (d) and (e):

8. Takes note of the initial overview of the role and expected impact of the Fund’s initial results areas as contained in document GCF/B.08/07;
9. Also notes the Board’s decision GCF/ B.04/04 that countries will identify their priority results areas in line with their national strategies and plans;
10. Further notes the Board’s decision that the initial approvals process recognizes the importance of the Board approving programmes and projects that best meet the Fund’s objectives as contained in decision GCF/B.07/08 paragraph (b);
11. Decides that the Board will aim to start taking decisions on programme and project proposals no later than its third meeting 2015;
12. Requests the Secretariat to complete the analysis of the expected role and impact of the Fund’s initial results areas and present for consideration by the Board options for determining Board level investment portfolios across the structure of the Fund based on the resource level outcomes of the initial resource mobilization process; and
13. Requests the impact analysis of the Fund’s initial results areas to focus on, inter alia:
    
    1. The identification of appropriate type of investment opportunities in the Fund’s results areas that can achieve paradigm shift towards low-emission and climate- resilient pathways; and
    2. What impacts the Fund can/will generate in (each of) the initial result areas that would advance the Green Climate Fund’s initial investment criteria and sub-criteria, and are not currently being adequately supported by existing finance channels.

The Board, having considered document GCF/B.08/08/Rev.01 Initial Logic Model and Performance Measurement Framework for REDD+ Results-based Payments,

Regarding agenda item 7 (b):

1. Adopts the initial logic model for REDD+ results-based payments and the performance measurement framework (PMF) for REDD+ results-based payments, as presented in Annex X and Annex XI, respectively;
2. Acknowledges that the initial logic model and PMF are prepared in accordance with the methodological guidance in the Warsaw Framework for REDD+ and in response to decision B.07/04, paragraph (k);
3. Notes that:
   
   1. This model shows the way in which results-based payments for REDD+ contribute to the achievement of the Fund’s overall mitigation objectives at the levels of the paradigm shift and impacts; and
   2. The Warsaw Framework specifies that results are to be expressed in tCO2e (UNFCCC decisions 9-15/CP.19) and this initial logic model is therefore designed in line with this definition of results;
4. Further notes that methodologies for the indicators in the PMF will be aligned with methodological guidance provided by the Conference of the Parties to the United Nations Framework Convention on Climate Change;
5. Also notes that the operationalization of REDD+ results-based payments needs to be considered in the context of the Fund’s investment framework and in line with its allocation policy; and
6. Notes that this initial logic model and PMF may be updated as decided by the Board.

The Board, having considered document GCF/B.08/09 Additional Modalities that Further Enhance Direct Access, Including through Funding Entities:

1. Requests the Secretariat, under the guidance of the Accreditation Committee and in consultation with relevant stakeholders, to prepare terms of reference for modalities for the operationalization of a pilot phase that further enhances direct access, which will include relevant readiness support if requested by subnational, national and regional entities, for approval by the Board at its ninth meeting; these terms of reference will launch the pilot phase; and
2. Clarifies that the terms of reference will specify, inter alia:
   
   1. The objective of the pilot phase;
   2. The type of entities to be involved;
   3. The specialized fiduciary standards required;
   4. The type of activities to be undertaken;
   5. The timeframe of the pilot phase; and
   6. The financial volume of the pilot phase.

The Board, having considered document GCF/B.06/07 Country Ownership:

1. Decides that the Board will only consider funding proposals that are submitted with a formal letter of "no-objection", in accordance with the procedure approved in this decision;
2. Approves the initial no‐objection procedure for funding proposals contained in Annex XII;
3. Endorses the initial best‐practice guidelines for the establishment of national designated authorities and focal points as contained in Annex XIII, noting their relevance for the implementation of the programme of work on readiness and preparatory support;
4. Endorses the initial best‐practice options for country coordination and multi‐stakeholder engagement, set out in Annex XIV noting that the specific guidance on multi‐stakeholder engagement in the context of the development of funding proposals will be included in the Fund’s environmental and social safeguards;
5. Urges developing countries, as well as entities in a position to provide readiness and preparatory support, to take into account the best‐practice guidelines for the establishment of national designated authorities and focal points and the best‐practice options for country coordination and multi‐stakeholder engagement endorsed in this decision;
6. Reiterates its invitation to developing countries to nominate and register with the Fund, through the Secretariat, their respective national designated authority or focal point as soon as possible and no later than March 2015; and
7. Requests the Secretariat to:
   
   1. Communicate the no‐objection procedure to developing countries and to make it available on the Fund’s website;
   2. Publish on the Fund’s website the list and contact details of registered national designated authorities and focal points and present to the Board an update on their nomination and registration at its next meeting; and
   3. Communicate and publish the recommended best‐practice guidelines for the establishment of national designated authorities and focal points, as well as the best‐practice options for country coordination and multi‐stakeholder engagement, for their use in accordance with this decision.

The Board, having reviewed document GCF/B.08/10 Revised Programme of Work on Readiness and Preparatory Support, and in alignment with decisions B.05/14 and B.06/06:

1. Reaffirms that Fund-related readiness and preparatory support is a strategic priority for the Fund to enhance country ownership and access during the early stages of its operationalization, and may help countries to meet the Fund’s objectives;
2. Takes note of the overview of national designated authority (NDA) or focal point designations and requests for readiness support presented in Annex XV;
3. Recalls that, in accordance with decision B.06/11, the Secretariat shall report in detail twice a year on activities undertaken by the readiness and preparatory support programme, and the progress of committing and disbursing available funds;

Allocation

4. Recalls decision B.05/14 paragraph (d) (iii);
5. Decides that all developing countries will have access to readiness support and that the Fund will aim for a floor of 50% of the readiness support allocation to particularly vulnerable countries, including small island developing States, least developed countries and African States;
6. Also decides that readiness commitments to individual developing member countries will be capped at US$ 1 million per calendar year;
7. Affirms that readiness requests will be assessed to ensure complementarity with existing readiness activities, if any;
8. Decides that this interim readiness funding allocation system will be reviewed in 2016, taking into consideration the bi-annual reporting referred to in paragraph (c);

Objectives and activities

9. Decides that the core objectives of the readiness programme shall be consistent with the Governing Instrument and prior Board and Conference of the Parties (COP) decisions. Readiness funding will be used to support the indicative activities listed in Annex XVI, and in accordance with decision B.08/10, and will include:
   
   1. Supporting the NDA or focal point in accordance with decision B.08/10, to engage with regional, national and sub-national government, civil society and private sector stakeholders with regard to the priorities of the Fund, taking a gender sensitive approach;
   2. Developing strategic frameworks for national engagement with the Fund (including country programmes, in accordance with decision B.08/10 and decision B.07/03 (initial proposal approval process), building on existing strategies and plans, including low-emission development strategies, Nationally Appropriate Mitigation Actions, National Adaptation Plans, and National Adaptation Programmes of Action. Annex XVII provides initial general guidelines for the preparation of country programmes;
   3. Enabling regional, national and sub-national institutions to meet the accreditation standards of the Fund, including for the fast-track accreditation process in coordination with the NDA or focal point; and
   4. Supporting the development of initial pipelines of programme and project proposals, including the identification of appropriate financial instruments, that are aligned with the objectives and initial investment framework of the Fund and that will support a paradigm shift to low-emission and climate-resilient development;
10. Decides that progress in meeting these objectives will be subject to an independent evaluation after two years to assess lessons learned;
11. Also decides that the Fund can provide up to US$ 300,000 of direct support to help establish an NDA or focal point and meet the costs of delivering on the Fund’s requirements for activities in accordance with Annex XVIII on the basis of needs and actual demand;
12. Further decides that the Fund, in coordination with and with the approval of the relevant NDA(s) or focal point(s), will:
    
    1. Deploy readiness funding to potential sub-national, national or regional implementing entities (IEs) and intermediaries who wish to be accredited to the Fund, consistent with the fit-for-purpose accreditation approach of the Fund; and
    2. Prepare sub-national, national, and regional IEs and intermediaries to apply for accreditation;
13. Decides that the Fund, in close coordination with the relevant NDA(s) or focal point(s), will deploy readiness funding to accredited IEs or intermediaries to develop project and programme pipelines, consistent with the Fund’s objectives;
14. Requests the Private Sector Advisory Group to provide recommendations for the deployment of readiness funding aimed at fostering private sector engagement in climate change financing and activities;
15. Decides that, from the resources available or to be made available in the GCF Trust Fund, US$ 15 million is to be made available for the execution of the readiness and preparatory support programme, and authorizes the Interim Trustee to commit and transfer such funds from the GCF Trust Fund to the Secretariat subject to the availability of resources, with a view to making available a further US$ 14 million after reviewing the bi-annual report referred to in paragraph (c) above;

Modalities and approach

16. Decides that all deployment of readiness and preparatory support funding will be led by the NDA or focal point. The NDA or focal point will either be the direct beneficiary of readiness support funding and/or will select delivery partners, including international organizations, and other international, regional, national and sub-national, public or private institutions well-versed in readiness activities. The delivery partners will have to demonstrate relevant expertise, experience, and ability to implement. This process will be supported by the Secretariat and the disbursement of funds will be based on agreed milestones;
17. Requests the Secretariat to coordinate, collaborate, and enter into partnerships, where appropriate, through framework cooperation agreements such as Memorandums of Understanding, with other national, regional and international institutions involved in the delivery of readiness support. This may include, inter alia, information-sharing and multi- stakeholder dialogues, to maximize complementarity and coherence with existing readiness initiatives. At national level, these efforts will be undertaken in coordination with the NDA or focal point;
18. Decides that funding proposals for readiness support will have information on the objectives, activities, outputs, implementation approach, and estimated costs. Each activity will be monitored using appropriate indicators;
19. Requests that results, emerging lessons learned and global experiences of the programme be included in the bi-annual report referred to in paragraph (c) above;
20. Further decides that readiness support will be implemented in conformity with the administrative policies of the Fund, including its procurement guidelines, and will address any conflicts of interest; and
21. Decides that, after reviewing the bi-annual report referred to in paragraph (c) above, the Board may authorize the allocation of additional funds for the execution of additional approved readiness and preparatory support activities.

The Board, having considered document GCF/B.08/12 Use of Other Financial Instruments:

1. Notes that the use of other financial instruments to support the objectives of the Fund is in line with the Fund's allocation criteria contained in the investment framework;
2. Decides that accredited entities shall list, as part of their application for accreditation, the range of financial instruments that they have the capacity and expertise to deploy;
3. Decides that the Fund will work through accredited implementing entities and intermediaries, who may deploy the resources in approved projects and programmes by using financial instruments, focusing on grants, concessional loans, equity, and guarantees;
4. Requests the Risk Management Committee to assess and monitor risks related to the implementation of the Fund's projects or programmes by accredited implementing entities or intermediaries, in accordance with the Fund's Risk Management Framework; and
5. Requests the Secretariat to carry out a review of lessons learned from the deployment of additional financial instruments within 36 months, under the oversight of the Risk Management Committee.

The Board, having considered document GCF/B.08/16 Policies for Contributions to the Green Climate Fund: Recommendations by Interested Contributors:

Endorses the policies for contribution to the Green Climate Fund set out in Annexes XIX, XX, XXI, XXII and XXIII hereto.

The Board, having considered document GCF/B.08/17 Decision-making Procedures for the Board in the Absence of Consensus:

1. Reaffirms paragraph 14 of the Governing Instrument for the Green Climate Fund that decisions of the Board will be taken by consensus of the Board members and that the Board will develop procedures for adopting decisions in the event that all efforts at reaching consensus have been exhausted; and
2. Requests the Secretariat to develop options for procedures for adopting decisions in the event all efforts at reaching consensus have been exhausted for consideration by the Board at its first meeting in 2015 taking into consideration document GCF/B.08/44 (Limited Distribution) Co-Chairs Non-paper: Voting Procedures.

The Board, having considered document GCF/B.08/18 Legal Arrangements for Contributions:

1. Decides to approve the Amended and Restated Agreement on the Terms and Conditions for the Administration of the Green Climate Fund Trust Fund (“The Amended and Restated Interim Green Climate Fund Trust Fund Agreement”), attached hereto as Annex XXIV;
2. Authorizes the Executive Director of the Fund to finalize with the Interim Trustee the terms and conditions of the annexes and attachments to the Amended and Restated Interim Green Climate Fund Trust Fund Agreement, as well as the templates for contribution agreements/arrangements reflecting the Policies for Contributions endorsed by the Board under agenda item 14 (b);
3. Authorizes the Executive Director of the Fund to execute on behalf of the Fund:
   
   1. The Amended and Restated Interim Green Climate Fund Trust Fund Agreement; and
   2. Any contribution agreements/arrangements to be entered into with the Interim Trustee and a Contributor;
4. Authorizes the Executive Director to act as the Authorized Designee under the Interim Green Climate Fund Trust Fund Agreement, as amended, with the right of delegation.

The Board, having reviewed document GCF/B.08/24 Administrative Budget of the Fund for 2015:

1. Notes, that of the proposed administrative budget of the Green Climate Fund for the period from 1 January 2015 to 31 December 2015 of US$ 19,266,866, as set out in Annex XXV; US$ 12,042,101 of this amount in staff costs was approved under Board decision B.05/20;
2. Approves an additional allocation of US$ 7,224,765 making the total allocation for 2015 up to US$ 19,266,866; and
3. Authorizes the Interim Trustee to make cash transfers from the Green Climate Fund Trust Fund to the Secretariat, and to the World Bank, as the Interim Trustee, in accordance with the administrative budget of the Fund approved by the Board, subject to adjustment based upon revised costs and expenditures to be incurred.

The Board, having considered document GCF/B.08/26 Administrative Guidelines on Human Resources, which was circulated to the Board as a limited distribution document:

1. Approves the Administrative Guidelines on Human Resources for a period to last until the end of 2015;
2. Authorizes the Executive Director to promulgate the guidelines for a period to last until the end of 2015;
3. Requests the Secretariat to seek further written comments from the Board on the guidelines until the end of 2014;
4. Requests the Secretariat to present, at the first Board meeting of 2015, an information note with the changes to be incorporated into the guidelines on the basis of the comments from the Board; and
5. Decides that the Board will review the guidelines, on the basis of the information note, at its last Board meeting of 2015.

The Board, having reviewed document GCF/B.08/27 Commencement of Annual Reporting and the External Auditing Process and based on the recommendations of the Ethics and Audit Committee:

1. Approves the adoption of the International Financial Reporting Standards as the accounting standard for the Fund;
2. Approves the terms of reference of the External Auditor as set out in Annex XXVII; and
3. Authorizes the Secretariat to commence work on the annual report for 2014, which will be presented at the second Board meeting held in 2015.

The Board, having reviewed document GCF/B.08/28 Work Plan of the Board for 2015:

Requests the Co‐Chairs to streamline the Work Plan of the Board for 2015, taking into consideration the comments made and decisions taken at the meeting.

The Board:

1. Endorses the nomination by the Accreditation Committee of the following experts to the Accreditation Panel for one term:
   
   1. Mr. Peter Carter (United Kingdom of Great Britain and Northern Ireland);
   2. Mr. Wolfgang Diernhofer (Austria);
   3. Ms. Penelope Herbst (South Africa/United Kingdom of Great Britain and Northern Ireland);
   4. Ms. Isna Marifa (Indonesia); and
   5. Ms. Anastasia Northland (Russian Federation/United States of America).
2. Decides that, in view of the withdrawal of one nominated member, the sixth expert to the Accreditation Panel will be nominated by the Accreditation Committee after the eighth Board meeting and the decision for endorsement by the Board will be taken between meetings;
3. Further decides that consideration of the sixth expert to the Accreditation Panel will take into account fiduciary expertise and representation from developing countries;
4. Emphasizes, for future additions and appointments, the importance of balance between developing and developed countries, gender and language diversity; and
5. Recommends strengthening these elements of balance in future recruitments and in the subsequent term of the Accreditation Panel, with the aim of reaching a 50%-50% balance between developing and developed countries, and ensuring that no two members will be from the same country.

The Board, having reviewed document GCF/B.08/31 Administrative Guidelines on Procurement:

1. Approves the Corporate Procurement Guidelines on the Use of Consultants and the Corporate Procurement Guidelines for Goods and Services, contained in Annexes XXVIII and XXIX, respectively, for a period to last until the third Board meeting of 2015;
2. Authorizes the Executive Director to promulgate the guidelines for a period to last until the end of 2015;
3. Requests the Secretariat to seek further written comments from the Board on the guidelines until the end of 2014;
4. Requests the Secretariat to present, at the second Board meeting of 2015, an information note with the changes to be incorporated into the guidelines on the basis of the comments from the Board; and
5. Decides that the Board will review the guidelines, on the basis of the information note, at its last Board meeting of 2015.

The Board, having considered document GCF/B.08/33 Trustee Arrangements, Including the Review of the Interim Trustee and the Initiation of a Process to Select the Trustee of the Fund and its addendum, document GCF/B.08/33/Add.01:

1. Decides to invite the World Bank to continue serving as the Interim Trustee until a permanent Trustee is appointed. The process to appoint the permanent Trustee should end no later than the end of 2017, to enable the permanent Trustee to commence its contractual agreement with the Fund no later than April 2018; and
2. Requests the Secretariat to:
   
   1. Submit to the Board draft terms of reference for the review of the Interim Trustee, in accordance with paragraph 26 of the Governing Instrument, by the eleventh Board meeting;
   2. Examine the option for the Fund to provide its own permanent Trustee services, including an assessment of internal capacity requirements to perform this function;
   3. Develop a list institutions/organizations which could potentially serve as permanent Trustee, including, but not limited to, a synopsis of their experience, costs and qualifications, to be submitted to the Board by the eleventh Board meeting; and
   4. Develop a methodology for an open, transparent and competitive bidding process to select a Trustee, to be submitted to the Board by the eleventh Board meeting.

The Board, having reviewed document GCF/B.08/35 Draft Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change:

Requests the current Co‐Chairs, assisted by the Secretariat, to finalize the draft Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), presented in Annex XXX to document GCF/B.08/35, taking into consideration the comments and amendments made and decisions taken at the meeting, and forward it to the UNFCCC secretariat.

The Board, having taken note of the information presented in document GCF/B.08/39 Options for an Institutional Linkage between the United Nations and the Fund:

1. Decides to incorporate the following recommendation in the report of the Board to the Conference of the Parties:

“The Board considers it of utmost importance for the quick operation of the Fund to ensure that the staff of the Fund’s Secretariat are covered by the privileges and immunities in the countries where the Fund is operating. To this end, and to give effect to the provisions set forth in paragraphs 7 and 8 of the Governing Instrument of the Fund, the Conference of the Parties (COP) may wish to consider recommending to the General Assembly of the United Nations that the General Assembly consider an institutional linkage between the United Nations and the Green Climate Fund that is consistent with the status of the Fund and the powers vested in the Board and a Secretariat that is fully independent and accountable to the Board, as stated in the Fund’s Governing Instrument, as approved by the COP in decision 3/CP.17.

It is understood that such institutional linkage will not affect the powers of the Board to appoint the Executive Director and to adopt rules, policies and guidelines for the effective administration of the Fund, and the powers vested in the Executive Director as the head of the Secretariat.”; and

2. Further requests that, in order for the Fund and its operations, members of the Board, consultants, and other persons affiliated with the Fund, as well as its staff, to have similar privileges and immunities to operate effectively, the Secretariat shall develop immediately for the Board’s consideration and approval a template bilateral agreement that would provide such privileges and immunities in countries in which the Fund operates.

The Board:

Decides that its first meeting in 2015 will take place in Songdo, Republic of Korea, from 25 to 27 February 2015.

(This approved decision was originally presented in annex I to document GCF/B.08/46 titled “Report of the Eighth Meeting of the Board, 14-17 October 2014”)

The Board, through a decision taken between meetings on a no-objection basis:

Approved the accreditation of the following as observer organizations with the Fund:

International entities:

• Banque Ouest Africaine de Développement (BOAD)
• International Federation of Red Cross and Red Crescent Societies
• International Organization for Migration (IOM)
• Nordic Development Fund (NDF)
• The World Bank (International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA))
• United Nations Children’s Fund (UNICEF)
• World Food Programme (WFP)

Civil society organizations:

• Ecoforum of NGOs of Uzbekistan (Ecoforum)
• Global Canopy Foundation
• International Centre for Development and Environment (ICED)
• Nature Code - Zentrum für Entwicklung & Umwelt (Centre of Development & Environment)
• Renewable Energy and Energy Efficiency Partnership (REEEP)

Private sector organizations:

• African Biofuel and Renewable Energy Company (ABREC)
• Banka BioLoo Pvt Ltd
• European Development Financing Institutions (EDFI)
• Geomedia Ltd.
• KPMG Samjong Accounting Corporation
• RSM GC Advisory Services Private Limited

The Board, through a decision taken between meetings on a no‐objection basis:

Decides that its third meeting in 2014 will take place in Barbados from 14 to 17 October.

The Board:

1. Adopts the report of the sixth meeting contained in document GCF/B.06/Drf.03, as amended;
2. Agrees to publish it on the Fund’s website (document GCF/B.06/19 Report of the Sixth Meeting of the Board, 19-21 February 2014);

The Board, having considered document GCF/B.07/02 Guiding Framework and Procedures for Accrediting National, Regional and International Implementing Entities and Intermediaries, Including the Fund’s Fiduciary Principles and Standards and Environmental and Social Safeguards:

1. Decides to adopt the initial guiding framework for the Fund’s accreditation process as contained in Annex I to this document, recognizing that it also applies to private sector entities;
2. Also decides to adopt the initial fiduciary principles and standards contained in Annex II to this document, and will conduct a review of these standards within three years;
3. Further decides to adopt, on an interim basis, the Performance Standards of the International Finance Corporation (IFC), as contained in Annex III to this document, noting that their use and implementation will be guided by the IFC Guidance Notes;2
4. Decides to aim to complete the process of developing the Fund’s own environmental and social safeguards (ESS), which will build on evolving best practices, within a period of three years after the Fund becomes operational, and with inclusive multi-stakeholder participation;
5. Establishes an Accreditation Committee comprised of four Board members or alternates in accordance with the terms of reference contained in Annex IV;
6. Invites the Board members in the team established in decision B.05/08, paragraphs (d) and (e), to serve as the Fund’s Accreditation Committee for its first term, with [Name of Board member or alternate] as Chair and [Name of Board member or alternate] as Vice-Chair;
7. Establishes the Fund’s Accreditation Panel as an independent technical panel to advise the Board on matters related to the accreditation of implementing entities (IEs) and intermediaries to the Fund. The Panel will be comprised of six expert members with balanced representation between developing and developed countries and the appropriate range of expertise, to be nominated by the Accreditation Committee for endorsement by the Board soon thereafter. This Panel will be in charge of conducting the accreditation process in accordance with its terms of reference;
8. Adopts the terms of reference for the Fund’s Accreditation Committee and Accreditation Panel contained in Annex IV and Annex V to this document, respectively;
9. Requests the Secretariat to develop, in consultation with the Accreditation Committee hereby established, a policy on accreditation fees that takes into account the financial capacities of institutions;
10. Agrees on a fit-for-purpose accreditation approach that matches the nature, scale and risks of proposed activities to the application of the initial fiduciary standards and interim ESS;
11. Requests the Secretariat to elaborate, under the guidance of the Accreditation Committee and Panel, the following elements for decision by the Board at its third meeting in 2014:
    
    1. Guidelines for the operationalization of the fit-for-purpose accreditation approach referred to in paragraph (j) above; and
    2. A work programme on complementarity and coherence with the accreditation systems and processes of other relevant funds, as well as relevant private sector associations, in consultation with the Private Sector Advisory Group (PSAG) and relevant stakeholders;
12. Requests the Accreditation Panel, with the support of the Secretariat, under the guidance of the Accreditation Committee, to elaborate the following elements for decision by the Board at its third meeting in 2014:
    
    1. An assessment, including a gap analysis, of institutions accredited by other relevant funds and in line with the Fund’s objectives against the interim ESS and initial fiduciary standards with recommendations on their potential accreditation or fast-tracking; and
    2. The identification of potential relevant private sector international best practice fiduciary principles or standards and ESS, and an assessment of gaps against the Fund’s initial fiduciary standards and interim ESS, in collaboration with the PSAG and in consultation with relevant stakeholders;
13. Also requests the Secretariat to issue a progress report by September on the items contained in paragraph (k) above;
14. Further requests the Secretariat, in consultation with the Accreditation Committee and the Accreditation Panel as needed, to develop an environmental and social management system for the Fund, based on the outline contained in Annex VI, which will include guidelines on the categorization of projects by IEs and intermediaries according to the level of environmental and social risk and in accordance with the Fund’s interim ESS;
15. Requests the Accreditation Panel, in collaboration with the Accreditation Committee and the Secretariat, to report annually to the Board on the status of applications for accreditation, identifying and analyzing barriers faced by applicants in meeting the requirements;
16. Recalling decision B.05/14, paragraph (b), on providing readiness and preparatory support to enable IEs and intermediaries to meet the Fund’s fiduciary principles and standards, and ESS, in order to directly access the Fund, requests the Secretariat to consider the findings of the report referenced in paragraph (m) above in updating its readiness support programme accordingly, and to prepare tools and guidance materials to enable applicants to comply with the fit-for-purpose accreditation requirements and process;
17. Requests the Secretariat to develop, under the guidance of the Accreditation Panel, additional specialized fiduciary standards that may be deemed necessary to effectively accommodate all institutional capacities required in IEs and intermediaries in the initial phase of operations of the Fund; and
18. Decides to open a call for submissions of accreditation applications from IEs and intermediaries after the Board’s third meeting of 2014, and requests the Secretariat to prepare the relevant application documents for consideration by the Board at its third meeting in 2014.

The Board, having reviewed document GCF/B.07/03, Initial Proposal Approval Process, Including the Criteria for Programme and Project Funding: 

1. Adopts the initial proposal approval process, as contained in Annex VII;
2. Recognizes that the initial proposal approval process will identify programmes and projects for Board consideration that best achieve the Fund’s objectives, and requests the Secretariat to develop methodologies for the selection process;
3. Takes note of the initial post-approval items contained in Annex VIII and requests the Secretariat to further develop them for further consideration by the Board at its ninth meeting;
4. Confirms that the criteria for programme and project funding are outlined in decision B.07/06 on the investment framework;
5. Notes convergence on the need to consider: proposal development funds; early endorsement prior to full proposal development; the initial proposal approval process for regional programmes and projects; and a policy for cancellation and termination;
6. Decides to establish an independent technical advisory panel composed of experts to provide an independent technical assessment of and advice on funding proposals for the Board;
7. Requests the Secretariat to present draft terms of reference for the independent technical advisory panel for consideration by the Board at its eighth meeting;
8. Further requests the Secretariat to develop an operations manual and an appraisal toolkit for the initial proposal approval process for programme and project funding;
9. Also requests the Secretariat in the development of the Fund’s information disclosure policy to address issues related to the initial proposal approval process
10. Decides to review the initial proposal approval process and to take action when it deems necessary. 3

The Board, having reviewed document GCF/B.07/04 Initial Results Management Framework of the Fund:  

1. Affirms that the elements of the initial results management framework of the Fund contained in this decision complement decision B.05/03, including the initial result areas of the Fund referred to in that decision, as contained in Annex I to document GCF/B.05/23, as well as the performance indicators of the initial result areas of the Fund also referred to in that decision, as contained in Annex II of document GCF/B.05/23;
2. Adopts the elements of the initial results management framework of the Fund as outlined hereunder:
   
   1. Levels of the logic model:
      • Paradigm shift objective
      • Impacts (Fund level)
      • Project/Programme outcomes
      • Project/Programme outputs
      • Activities
      • Inputs
   2. Initial mitigation logic model:
      
      1. Paradigm shift objective for mitigation:
         • Shift to low-emission sustainable development pathways;
      2. Fund level impacts for mitigation:
         
         1. Reduced emissions through increased low-emission energy access and power generation;
         2. Reduced emissions through increased access to low-emission transport;
         3. Reduced emissions from buildings, cities, industries and appliances;
         4. Reduced emissions from land use, deforestation, forest degradation, and through sustainable forest management and conservation and enhancement of forest carbon stocks; 
      3. Project/programme level outcomes for mitigation:
         
         1. Strengthened institutional and regulatory systems for low-emission planning and development;
         2. Increased number of small, medium and large low-emission power suppliers;
         3. Lower energy intensity of buildings, cities, industries, and appliances;
         4. Increased use of low-carbon transport;
         5. Improved management of land or forest areas contributing to emissions reductions;
   3. Initial adaptation logic model:
      
      1. Paradigm shift objective for adaptation:
         • Increased climate-resilient sustainable development
      2. Fund level impacts for adaptation:
         
         1. Increased resilience and enhanced livelihoods of the most vulnerable people, communities, and regions;
         2. Increased resilience of health and well-being, and food and water security;
         3. Increased resilience of infrastructure and the built environment to climate change threats;
         4. Improved resilience of ecosystems and ecosystem services;
      3. Project/programme level outcomes for adaptation:
         
         1. Strengthened institutional and regulatory systems for climate- responsive planning and development;
         2. Increased generation and use of climate information in decision- making;
         3. Strengthened adaptive capacity and reduced exposure to climate risks;
         4. Strengthened awareness of climate threats and risk-reduction processes;
3. Adopts the following core indicators for mitigation:
   
   1. Tonnes of carbon dioxide equivalent (tCO2eq) reduced as a result of Fund-funded projects/programmes;
   2. Cost per tCO2eq decreased for all Fund-funded mitigation projects/programmes;
   3. Volume of finance leveraged by Fund funding, disaggregated by public and private sources;
4. Adopts the following core indicator for adaptation: Total number of direct and indirect beneficiaries; number of beneficiaries relative to total population;
5. Confirms that performance measured at the paradigm shift and impact levels refers to the aggregate project/programme-based results of the Fund;
6. Acknowledges that the inputs, activities, and outputs will be defined for each project/programme on a case-by-case basis;
7. Takes note of the initial performance indicators in Annex IX and Annex X to this document;
8. Affirms that national and sector-wide indicators will be used only at the discretion of the recipient country;
9. Decides that the results management framework should take a gender-sensitive approach and that the results should be disaggregated by gender where relevant;
10. Requests the Secretariat to further develop the mitigation and adaptation performance measurement frameworks of the Fund, engaging international experts as required, for the Board to consider at its third meeting of 2014, including an approach to gender, indicators on mitigation and adaptation, and methodologies, data sources, frequency, and responsibilities for reporting;
11. Further requests the Secretariat to develop a logic model and performance framework for ex-post REDD+ results-based payments, in accordance with the methodological guidance in the Warsaw framework for REDD+, for consideration at the third Board meeting of 2014.

The Board, having reviewed document GCF/B.07/05 Financial Risk Management Framework:

1. Recognizes that the initial financial risk management framework focuses on the financial risk environment that the Fund will encounter in its operations;
2. Adopts the Fund’s initial financial risk management framework as contained in Annex XI and Annex XIII to this document;
3. Takes note of the Fund’s financial risk categorization and management as contained in Annex XII to this document;
4. Decides that the risk monitoring and reporting management system listed in table 1 of Annex XI to this document will be made operational before the Fund approves funding proposals;
5. Requests the Secretariat, in consultation with the Risk Management Committee, to prepare an analysis of the Fund’s potential risk appetite under different key assumptions as part of its financial risk management framework. To this end:
   
   1. The Secretariat will provide, as a first step, a survey of methodologies used by relevant institutions to define and determine their risk appetite, for consideration by the Board at the third Board meeting of 2014;
   2. The Secretariat, in consultation with the Risk Management Committee, will present at the first meeting after the Fund’s initial resource mobilization a methodology for determining the initial risk appetite of the Fund, for approval of the Board; and
   3. The Secretariat to outline various scenarios, using the approved methodology, will support the Board in the setting of the Fund’s initial risk appetite.
6. Decides to annually consider undertaking a review of the initial financial risk management framework, and to have an in-depth review no later than three years after the initial capitalization of the Fund;
7. Requests that the Risk Management Committee, as part of its work programme, expand its analysis beyond financial risks to address other risks that the Fund may encounter.

The Board, having reviewed document GCF/B.07/06 Investment Framework:

1. Adopts the initial investment framework of the Fund, as contained in Annex XIV;
2. Decides that the Fund’s initial investment framework will reflect the Fund’s theme/activity- based resource allocation system as laid out in decision B.05/05;
3. Requests the Investment Committee to submit the following for consideration to the eighth Board meeting, with technical support from the Secretariat and other stakeholders and taking into consideration recommendations from the Private Sector Advisory Group, before the Fund approves funding proposals:
   
   1. Definitions for activity-specific sub-criteria and a set of activity-specific indicators, taking into account the Fund’s initial investment framework, the Fund’s initial result areas and initial results management framework, and decisions B.05/05, B.06/07 and B.05/03 as well as subsequent decisions on additional result areas for adaptation;
   2. Minimum benchmarks for each criterion, taking into account the best practices of other institutions;
   3. Identification and comparison of methodologies, that enable the Secretariat to assess the relative quality and innovativeness of comparable proposals in comparable circumstances, including through a survey, for the application of the sub-criteria mentioned in paragraph (c) (i) above in the selection of proposals;
4. Requests the Secretariat to prepare a document for the eighth Board meeting that considers the additional support, expert advice and/or additional structures that are required to facilitate the work of the Secretariat in the assessment of proposals against the activity-specific criteria and the work of the Investment Committee;
5. Decides to keep under review the initial investment framework and to take action as necessary in particular with respect to the criterion on needs of the recipient countries in the investment guidelines.

The Board, having reviewed document GCF/B.07/07/Rev.01 Structure of the Fund and the Secretariat:

1. Takes note of the document GCF/B.07/07/Rev.01 Structure of the Fund and the Secretariat;
2. Affirms the structure of the Fund and the Secretariat as reflected in the Governing Instrument, and the decisions of the Board and the Conference of the Parties listed in Annex XV;
3. Decides to undertake a review of the structure of the Fund and the Secretariat, no later than three years after the initial resource mobilization of the Fund;
4. Recognizes that the structure of the Fund, including that of the Private Sector Facility (PSF), is evolving. In this regard, the Board will fully implement decision B.04/08 on the PSF and decision B.04/09 on the structure and organization, taking into consideration the recommendations of the Private Sector Advisory Group on enhancing the structure of the PSF.

The Board, having reviewed document GCF/B.07/08 Initial Modalities for the Operation of the Fund’s Mitigation and Adaptation Windows and the Private Sector Facility:

1. Takes note of document GCF/B.07/08;
2. Affirms the initial modalities for the operation of the Fund’s mitigation and adaptation windows and the Private Sector Facility (PSF) as reflected in the Governing Instrument, and the decisions of the Board and of the Conference of the Parties to the United Nations Framework Convention on Climate Change listed in Annex XVI;
3. Recognizes that the mitigation and adaptation windows and the PSF are integral components of the Fund that will evolve over time;
4. Decides to undertake a review of the initial modalities for the operation of the Fund’s mitigation and adaptation windows and the PSF, no later than three years after the initial resource mobilization of the Fund;
5. Decides that the Board, in line with decision B.04/08, will consider at its eighth meeting further work on the modalities of the PSF, including:
   
   1. Modalities for mobilizing private sector resources at scale by the PSF and the use of other financial instruments, including guarantees and equity investment;
   2. The first report and recommendations of the Private Sector Advisory Group (PSAG);
6. Requests the PSAG to provide advice on the implementation of decision B.04/08 for consideration at the eighth meeting of the Board, with a focus on:
   
   1. Modalities to promote participation of private sector actors in developing countries, in particular local actors, including small and medium-sized enterprises and local financial intermediaries in small island developing States, least developed countries and Africa, and with a special emphasis on adaptation;
   2. Modalities and instruments to mobilize private resources at scale including through special financing vehicles or instruments, including risk mitigation instruments.

The Board, having reviewed document GCF/B.07/09 Confirmation of the Completion of the Essential Requirements and the Commencement of the Initial Resource Mobilization Process:

1. Decides that the eight essential requirements for the Fund to receive, manage, programme and disburse financial resources, as listed in Annex XXII of the decision B.05/17, have been met;
2. Takes note that the policies, frameworks and procedures of the Fund are evolving and may need to be further enhanced;
3. Decides to commence the process to mobilize resources commensurate with the Fund’s ambition to promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change;
4. Requests the Secretariat to make arrangements with all interested contributors, facilitating a collective engagement in the initial resource mobilization process as agreed in decision B.05/17;
5. Stresses the urgency to reach pledges by November 2014, while noting that the initial resource mobilization process may need to continue beyond this date;
6. Endorses the arrangements for a collective engagement in the initial resource mobilization process, as contained in Annex XVII;
7. Decides that the Board will consider the policies for contributions based on recommendations from the first meeting of interested contributors;
8. Requests the Interim Trustee to provide support, as part of its function to administer the Green Climate Fund Trust Fund, to the Secretariat on:
   
   1. The preparation of a template for legal arrangements for contributions to the Fund for consideration by the Board;
   2. Other relevant financial management issues as agreed between the Secretariat and Interim Trustee;
9. Authorizes the Executive Director to confirm with the Interim Trustee the scope of Interim Trustee support, as referred to in paragraph (h).

The Board, having considered the workload of the Secretariat between the seventh and eighth meeting of the Board:

Requests the Co-Chairs to determine the priorities for the agenda of the eighth Board meeting in consultations with their constituencies, taking into account the outstanding issues listed in the footnote of document GCF/B.07/01/Rev.01, the work plan of the Board adopted in decision B.05/19, and the mandates emerging from the decisions adopted at its seventh meeting.

The Board:

Decides that its third meeting in 2014 will take place in Barbados from 15 to 17 October 2014.

The Board:

Decides to consider the representation of Board membership at its eighth meeting.

(This approved decision was originally presented in annex XVIII to document GCF/B.07/12 titled “Report of the Seventh Meeting of the Board, 18-21 May 2014”)

The Board, through a decision taken between meetings on a no-objection basis:

Approved the accreditation of the following as observer organizations with the Fund:

International entities:

• Food and Agriculture Organization of the United Nations (FAO)
• Global Water Partnership Organization (GWPO)
• Center for International Forestry Research (CIFOR)

Civil society organizations:

• Conservation International (CI)
• Global Carbon Capture and Storage Institute (Global CCS Institute)
• Save the Children Australia
• Stichting Climate Action Network South Asia (CANSA)
• Wahana Lingkungan Hidup Indonesia (WALHI) / Friends of The Earth Indonesia (FoE Indonesia)
• WLA - Club de Madrid Women Organizing for Change in Agriculture and Natural Resources Management (WOCAN)
• Yayasan Keanekaragaman Hayati Indonesia (Indonesian Biodiversity Foundation)

Private sector organizations:

• Korea Finance Cooperation (KoFC)

The Board:

1. Adopts the report of the fifth meeting, contained in document GCF/B.05/Drf.02, as amended;
2. Agrees to publish it on the Fund’s website (document GCF/05/24 Report of the Fifth Meeting of the Board, 8-10 October 2013).

The Board:

Appoints the following Board member to the Investment Committee for its first term, in accordance with the Terms of Reference as set out in Annex VII to document GCF/B.05/23:

Mr. Ewen McDonald, Committee member.

The Board, having considered document GCF/BM-2014/01 Administrative Policies of the Fund:

1. Adopts the Administrative Policies of the Fund, as contained in Annex I to this document; and
2. Approves the Fund’s initial staff salary structure for internationally and locally recruited staff effective 1 January 2014, as set out in Annex II to this document.

The Board, having considered document GCF/B.06/02 Initial Modalities for the Operation of the Fund’s Mitigation and Adaptation Windows and the Private Sector Facility:

1. Notes that the initial modalities for the operation of the Fund’s mitigation and adaptation windows and the Private Sector Facility are under discussion by the Board according to the items as set out in document GCF/B.06/02. In addition, modalities for the operation of the Fund’s Private Sector Facility will be developed based on the  recommendations of the Private Sector Advisory Group;
2. Decides that a conclusion on the initial modalities of the Fund can only be reached at the end of the May 2014 Board meeting, once the Board has completed its deliberations on the different elements that constitute the modalities;
3. Decides that the Board will continue considering the initial modalities for the operation of the Fund’s mitigation and adaptation windows and the Private Sector Facility at its May 2014 meeting, based on a revised document, taking into consideration the views expressed during this meeting.

The Board, having considered document GCF/B.06/03 Additional Result Areas and Indicators for Adaptation Activities:

Requests the Secretariat to further develop the proposals for adaptation result areas and indicators in conjunction with the Fund’s results management framework, taking into account the comments made by the Board.

The Board, having reviewed document GCF/B.06/05 Policies and Procedures for the Initial Allocation of Fund Resources,

1. Adopts the following initial parameters and guidelines for allocation of resources, during the initial phase of the Fund:
   
   1. Decision to aim for a 50:50 balance between mitigation and adaptation over time;
   2. Decision to aim for a floor of fifty per cent of the adaptation allocation for particularly vulnerable countries, including least developed countries (LDCs), small island developing States (SIDS) and African States;
   3. Decision to manage access to resources with a view to seeking geographic balance and a reasonable and fair allocation across a broad range of countries, while maximizing the scale and transformational impact of the mitigation and adaptation activities of the Fund;
   4. Decision to maximize engagement with the private sector, including through a significant allocation to the Private Sector Facility;
   5. Decision that sufficient resources should be provided for readiness and preparatory support;
   6. Decision that all allocation parameters should be determined in grant equivalents;
2. Requests the Secretariat to report annually on the status of resources in respect of the allocation parameters;
3. Decides to undertake a review of the initial allocation parameters and guidelines, including of concentration risks, subject to the size of the Fund, no later than two years from the start of allocation of resources.

The Board, having considered document GCF/B.06/13 Options for a Fund-wide Gender-sensitive Approach:

1. Requests the Secretariat to integrate gender considerations in the preparation of draft policy documents and draft documents containing operational modalities, in line with the Governing Instrument, including those documents for consideration by the Board at its seventh meeting;
2. Requests the Secretariat to prepare a draft gender policy and action plan for discussion at the seventh Board meeting, consistent with a country-driven approach, including through consultations with relevant bodies and observer organizations, for adoption at the eighth Board meeting.

The Board:

Requests the Secretariat to present to the seventh Board meeting a proposal, with draft terms of reference, to establish a Board committee to assist the Board in the appointments, performance reviews, salary decisions and accountability of the Head of the Independent Evaluation Unit, the Head of the Independent Integrity Unit and the Head of the Independent Redress Mechanism Unit as well as the Executive Director.

The Board, having reviewed document GCF/B.06/06 Terms of Reference of the Independent Evaluation Unit, the Independent Integrity Unit, and the Independent Redress Mechanism:

1. Adopts the terms of reference of the Independent Evaluation Unit, as set out in Annex III to this document;
2. Adopts the terms of reference of the Independent Integrity Unit, as set out in Annex IV to this document;
3. Adopts the terms of reference of the Independent Redress Mechanism, as set out in Annex V to this document.

The Board, having considered document GCF/B.06/07 Country Ownership:

Requests Board members/alternate members Mr. Dipak Dasgupta, Mr. Omar El-Arini,  Mr. Anton Hilber and Mr. Alexander Severens to continue undertaking their deliberations on country ownership and to report back to the Board at its seventh meeting with a proposal for decision.

The Board, having considered document GCF/B.06/14 Detailed Programme of Work on Readiness and Preparatory Support:

1. Takes note of the priority activities for readiness and preparatory support:
   
   1. Establishment of national designated authorities or focal points;
   2. Strategic frameworks, including the preparation of country programmes;
   3. Selection of intermediaries or implementing entities;
   4. Initial pipelines of programme and project proposals;
2. Requests the Secretariat to elaborate a revised detailed programme of work, for consideration by the Board at its seventh meeting, that includes the following:
   
   1. Readiness activities to be undertaken in countries based on requests for support resulting from a consultation with countries and stakeholders;
   2. A delivery plan for the implementation of these readiness activities. The delivery plan will be developed in consultation with countries and existing initiatives. It will include a timeline and modalities for implementation;
   3. Options for entering into partnerships with existing initiatives, including of sub-national, national, regional and international actors, in order to implement the readiness activities supported by the Fund;
3. Decides from the resources available or to be made available in the Green Climate Fund Trust Fund, the allocation of funds in the amount of US$ 1 million to the Secretariat for the preparation of a detailed programme of work and authorizes the Interim Trustee to commit and transfer such funds from the Green Climate Fund Trust Fund to the Secretariat, subject to the availability of resources in the Green Climate Fund Trust Fund;
4. Requests the Secretariat to seek transparency, complementarity,  and coherence amongst existing initiatives, and to establish and maintain an information-sharing platform and dialogue and facilitate South-South exchanges;
5. Requests the Secretariat to review the modalities for the delivery of readiness support once the Fund’s accreditation and allocation policies are approved, with a view of ensuring consistency with the other established operational modalities of the Fund, for consideration by the Board;
6. Requests the Executive Director to report to the Board twice a year on:
   
   1. Activities undertaken, including joint activities with existing initiatives;
   2. The progress of committing and disbursing available funds.

The Board, having considered document GCF/B.06/16 Financial Terms and Conditions of Grants and Concessional Loans:

Requests the Secretariat to revise document GCF/B.06/16 for the seventh Board meeting, taking into account the ongoing work on the financial risk management and investment frameworks.

The Board:

Decides that its second meeting in 2014 will take place on 18-21 May 2014 in Songdo, Republic of Korea.