Boardroom

The Board:

Authorized the Interim Secretariat to provide from the administrative budget of the Fund the travel costs for the most direct and economical route associated with Board meetings of one designated adviser per eligible developing country Board member and alternate member.

The Board:

Decides to amend paragraph (b) of decision B.04/15 by inserting “the Multilateral Fund for the Implementation of the Montreal Protocol” after “the Adaptation Fund”.

The Board:

1. Adopts the report of the fourth meeting, contained in document GCF/B.04/Drf.02;
2. Agrees to publish it on the Fund’s website (document GCF/04/18 Report of the Fourth Meeting of the Board, 26‐28 June 2013).

The Board:

1. Recalls decision B.04/04, paragraph (a), in which it noted convergence that the Fund will have a strategic focus on climate change mitigation and adaptation, and also seek to maximize sustainable development;
2. Recalls decision B.04/04, paragraph (b), in which it reaffirmed that country ownership will be a core principle of the business model framework of the Fund and that countries will identify their priority result areas in line with their national strategies and plans;
3. Notes convergence that ownership and access to Fund resources could be enhanced by inclusion of indicators capturing country‐driven policies that have the potential to promote a paradigm shift towards low‐emission and climate‐resilient development pathways in the context of sustainable development as set out in the Governing Instrument;
4. Further notes convergence on key criteria that may be considered through the results management framework when measuring performance of Fund activities, where appropriate, in addition to the core performance indicators, including potential for paradigm shift towards low‐emission and climate‐resilient development pathways; development co‐benefits; environmental co‐benefits; potential for replication and scalability; cost‐effectiveness; avoidance of lock‐in to high‐emission, low climate‐resilient alternatives; and finance mobilized from non‐public sources;
5. Adopts the initial result areas of the Fund, as contained in Annex I to this document, as initial areas of funding, in order to enable low‐emission and climate‐resilient development pathways;
6. Adopts the initial performance indicators of the Fund, as contained in Annex II to this document;
7. Decides that the Fund’s results management framework will:
   
   1. Enable effective monitoring and evaluation of the outputs, outcomes and impacts of the Funds’ investments and portfolio, and the Fund’s organizational effectiveness and operational efficiency;
   2. Include measurable, transparent, effective and efficient indicators and systems to support Fund’s operations, including, inter alia, how the Fund addresses economic, social and environmental development co‐benefits and gender sensitivity;
8. Further decides that the Fund, as a continuously learning institution, will maintain the flexibility to refine its results management framework, result areas and performance indicators, based on Fund experience in implementation and monitoring, and as evaluation outcomes become available, and that the lessons learned will feed back into the design, funding criteria and implementation of Fund activities, based on results;
9. Further decides that the Fund will assess project and programme proposals in each result area using the same impact indicators;
10. Further decides that national and sector‐wide indicators will be used only at the discretion of the recipient country;
11. Further decides that in designing a logical framework for results management, the Fund will develop indicators to measure the impact of the Fund on strategic improvements at a country level;
12. Further decides that in designing its results management framework, the Fund will use the experience of other relevant entities, and, where appropriate, align the framework and indicators with existing best practice models;
13. Requests the Secretariat to develop, for consideration by the Board at its second meeting in 2014, a detailed operational results management framework of the Fund, based on the initial result areas and core performance indicators and key criteria decided upon by the Board, taking into account the methodologies set out for illustrative purposes in Annex II of document GCF/B.05/03, input from technical expert bodies and the reporting capacity of countries;
14. Further requests the Secretariat to develop additional result areas and indicators for adaptation activities for consideration by the Board at its first meeting in 2014.

The Board, having reviewed document GCF/B.05/04 Business Model Framework: Financial Inputs:

1. Notes that the Fund will receive financial inputs from developed country Parties to the Convention;
2. Further notes that the Fund may also receive financial inputs from a variety of other sources, public and private, including alternative sources;
3. Decides that the Fund will maintain the flexibility to receive financial inputs on an on‐going basis;
4. Decides that the Fund will receive grants from public and private sources, and paid‐in capital contributions and concessional loans from public sources, and may receive additional types of inputs at a later stage to be decided by the Board;
5. Requests the Secretariat to include the specific risks associated with accepting concessional loans to the Fund, including the risk of cross‐subsidization, when developing the Fund’s risk management framework and investment strategy;
6. Requests the Secretariat to prepare a document for understanding and defining alternative sources of financial inputs to the Fund for consideration by the Board at its second meeting in 2014;
7. Requests the Secretariat to initiate discussions with the Interim Trustee to identify appropriate arrangements for receiving financial inputs;
8. Notes convergence on the importance of the relationship between the terms and conditions of financial instruments and the types of financial inputs received by the Fund.

The Board, having reviewed document GCF/B.05/05 Business Model Framework: Allocation:

1. Decides that the Fund will adopt a theme/activity‐based approach to the allocation of resources in order to meet the Fund’s objectives;
2. Decides that the Board will keep the allocation system under review with the intention of improving it over time;
3. Decides that the Fund will initially make allocations under adaptation, mitigation and the Private Sector Facility, and that there will be balance between adaptation and mitigation and the appropriate allocation of resources for other activities;
4. Decides that, in relation to adaptation, resources will be allocated based on:
   
   1. the ability of a proposed activity to demonstrate its potential to adapt to the impacts of climate change in the context of promoting sustainable development and a paradigm shift;
   2. the urgent and immediate needs of vulnerable countries, in particular LDCs, SIDS and African States;
5. Decides that, in relation to mitigation, resources will be allocated based on the ability of a proposed activity to demonstrate its potential to limit and reduce greenhouse gas emissions in the context of promoting a paradigm shift;
6. Decides that, in relation to the Private Sector Facility, resources will be allocated based on the contribution a proposed activity makes towards promoting a paradigm shift and to:
   
   1. Directly and indirectly finance private sector mitigation to limit and reduce greenhouse gas emissions and adaptation to the impacts of climate change activities;
   2. Promoting the participation of private sector actors in developing countries, in particular local actors, including small and medium‐sized enterprises and local financial intermediaries, and activities to enable private sector involvement in SIDS and LDCs;
7. Requests the Secretariat to develop and present to the Board at its second meeting in 2014 a resource allocation system, based on this decision and taking into consideration the views expressed by the Board, that facilitates:
   
   1. Cross‐cutting proposals;
   2. A results‐based approach;
   3. A country‐driven approach;
   4. A geographically balanced approach;
   5. Private sector mitigation and adaptation activities at the national, regional and international levels;
8. Further requests the Secretariat to develop and present an initial process for review and approval of proposals to the Board at its second meeting in 2014.

The Board, having reviewed document GCF/B.05/06 Business Model Framework: Countries’ Transparent No‐objection Procedure:

1. Takes note of the information presented in document GCF/B.05/06;
2. Provides guidance to the Interim Secretariat on the policy matters regarding country ownership under the Fund;
3. Requests the Interim Secretariat to revise document GCF/B.05/06 in view of the guidance provided, and present a revised version of this document for the consideration by the Board at its first meeting in 2014.

The Board, having reviewed document GCF/B.05/07 Terms and Criteria for Grants and Concessional Loans:

1. Decides to adopt, for the initial operationalization of the Fund, the principles and factors for the terms and conditions of grants and concessional loans, as contained in Annex III to this document;
2. Takes note of the criteria for the terms and conditions of grants and concessional loans, as contained in Annex IV to this document;
3. Requests the Secretariat to develop terms and conditions of grants and concessional loans for consideration by the Board at its first meeting in 2014, guided by these principles and criteria, and taking into consideration progress on the business model framework; and
4. Further requests the Secretariat to prepare a document for consideration by the Board at its third meeting in 2014 on the use of other financial instruments.

The Board, having considered document GCF/B.05/08 Business Model Framework: Access Modalities – Accreditation:

1. Notes convergence on the need to develop a guiding framework and procedures for the accreditation process of the Fund that enhances country ownership, accommodates different capacities and capabilities of countries, defines the Fund’s own fiduciary principles and standards and environmental and social safeguards, and accredits entities in a transparent, objective and credible manner, in line with the Fund’s objectives, results and guiding principles;
2. Acknowledges the best‐practice fiduciary principles and standards referred to inAnnex V and the environmental and social safeguards of the entities referred to in Annex VI to this document, as the basis for developing the Fund’s own criteria and standards;
3. Takes note of the list of considerations and initial criteria to inform the elaboration of the Fund’s criteria for accreditation of sub‐national, national, regional and international intermediaries and implementing entities, as presented in Annex VII to this document, and as part of the development of the guiding framework for the Fund’s accreditation process;
4. Requests a team of four Board members/alternate members to oversee the development of the guiding framework for the Fund’s accreditation process by the Secretariat, which will also include four senior international experts to be nominated by the Executive Director, for consideration by the Board no later than at its second meeting in 2014. This will include overseeing the development by the Secretariat of:
   1. The Fund’s own environmental and social safeguards and fiduciary principles and standards;
   2. The criteria and application procedures for the accreditation of intermediaries and implementing entities of the Fund;
   3. The most appropriate governance and organizational approach for the Fund’s accreditation process, including an Independent Technical Advisory Function to conduct the accreditation process, taking into account Annex X and Annex XI to this document, and the terms of reference contained in Annex XI, as appropriate;
   4. An assessment of the list of the institutions accredited by other funds, as contained in Annex VIII to this document, in light of the development of the guiding framework for the accreditation process of the Fund;
   5. Additional modalities that further enhance direct access, including through funding entities, with a view to enhancing country ownership of projects and programmes, for consideration by the Board at its first meeting in 2014;
5. Decides that the following Board members will be part of the team referred to above: Mr. Arnaud Buisse, H.E. Mr. Jan Cedergren, Mr. Derek Gibbs and Mr. David Kaluba;
6. Requests the Secretariat to undertake all necessary actions to ensure that the work of the team and the development of the guiding framework for the Fund’s accreditation process starts as soon as possible;
7. Approves the terms of reference of the senior international experts to be nominated by the Executive Director and to serve in the team, as contained in Annex IX to this document;
8. Further requests the Secretariat to initiate work on provisions for legal and formal arrangements with intermediaries and implementing entities, policies on fees and payments, and any other necessary elements to facilitate the prompt operationalization of the Fund’s accreditation process and its access modalities, and report on its progress at the first meeting of the Board in 2014;
9. Also requests the Secretariat to initiate urgently work and activities to support readiness for accreditation in interested sub‐national, national, regional and international intermediaries and implementing entities, in the context of the Fund’s programme of work on readiness and preparatory support and as discussed in document GCF/B.05/14, and report on its progress at the first meeting of the Board in 2014.

The Board, having reviewed document GCF/B.05/09 Progress Report of the Logo Selection Panel:

1. Notes that the entries received in the logo competition were not adequate to represent the identity and image of the Fund;
2. Decides that the logo competition will be cancelled, as recommended by the Logo Selection Panel;
3. Requests the Interim Secretariat, under the overall authority of the Executive Director, to contract a professional designer to design the logo of the Fund;
4. Requests the Logo Selection Panel to oversee the work on the design of the logo;
5. Requests the Interim Secretariat to undertake the work necessary to implement the new logo in all communication products of the Fund, once the selection has been made.

The Board, having reviewed document GCF/B.05/10 Initial Structure and Staffing of the Secretariat:

1. Decides on the initial structure of the independent Secretariat, as set out in Annex XII to this document;
2. Takes note of the organizational diagram, showing the initial organization of the Secretariat in 2014, as presented in Annex XIII to this document;
3. Authorizes the Executive Director to recruit initial staff as presented in Annex XIV to this document;
4. Endorses the process and timeframe for implementing the proposed initial structure of the Secretariat, as set out in Annex XV to this document.

The Board, having considered document GCF/B.05/11 Progress Report on the Administrative Policies and Guidelines of the Independent Secretariat:

1. Approves with immediate effect, in accordance with the Governing Instrument, the establishment of the GCF Secretariat, as the fully independent secretariat foreseen in paragraph 19 of the Governing Instrument;
2. Authorizes the Executive Director to take all necessary actions and to make, on behalf of the Fund, necessary arrangements and contracts to facilitate the establishment and operations of the GCF Secretariat in the Republic of Korea in order to allow the Fund to perform its functions;
3. Authorizes the Executive Director to recruit, pending selection of staff through competitive procedures and their recruitment according to decision B.05/10, on a short‐term temporary basis, staff and experts to assist her in her functions;
4. Requests the Secretariat to seek a legal opinion of the Office of Legal Affairs of the United Nations on whether, and if so, under which circumstances, the Fund might qualify for: (i) an institutional linkage with the United Nations; and (ii) a relationship agreement with the United Nations under which the officials of the Secretariat and other persons associated with the Fund can make use of the United Nations Laissez Passer;
5. Takes note of the plan for the preparation of the administrative policies and guidelines of the Secretariat, as presented in Section 3.2 of document GCF/B.05/11;
6. Requests the Executive Director to promulgate all administrative guidelines based on the authorization given to her through decision GCF/B.04/03, and to submit policies to the Board for approval.

The Board, having considered document GCF/B.05/12 General Guidelines for Committees and Panels:

1. Takes note of document GCF/B.05/12 General Guidelines for Committees and Panels;
2. Decides to continue establishing committees, panels and groups, by defining their purpose and functions, as well as their mode of operation, in the respective terms of reference, and to consider general guidelines for committees, panels and groups at a later stage, as necessary;
3. Notes that the Rules of Procedure of the Board will apply mutatis mutandis to the committees, panels and groups established.

The Board, having reviewed document GCF/B.05/13 Terms of Reference and Establishment of Committees and Panels:

1. Establishes the Risk Management Committee as a committee of the Board in accordance with decision B.04/08 and paragraphs 2 (g) and 30 of the Rules of Procedure of the Board;
2. Adopts the Terms of reference of the Risk Management Committee as set out in Annex XVI to this document;
3. Establishes the Investment Committee as a committee of the Board in accordance with decision B.04/08 and paragraphs 2 (g) and 30 of the Rules of Procedure of the Board;
4. Adopts the Terms of reference of the Investment Committee as set out in Annex XVII to this document;
5. Establishes the Ethics and Audit Committee as a committee of the Board in accordance with paragraphs 2 (g) and 30 of the Rules of Procedure of the Board;
6. Adopts the Terms of reference of the Ethics and Audit Committee as set out in Annex XVIII to this document;
7. Appoints the following Board members/alternate members as members of the Ethics and Audit Committee for its first term:
   
   1. Mr. Omar El‐Arini, Committee member;
   2. Ms. Ana Fornells de Frutos, Committee member;
   3. Ms. Beata Jaczewska, Committee member;
   4. Mr. Matthew Kotchen, Committee member;
   5. Mr. Ayman M. Shasly, Committee member; and
   6. Mr. Kwang‐Yeol Yoo, Committee member;
8. Establishes the Private Sector Advisory Group as a panel of the Board in accordance with decision B.04/08 and paragraphs 2 (o) and 32 of the Rules of Procedure of the Board;
9. Adopts the Terms of reference of the Private Sector Advisory Group as set out in Annex XIX to this document;
10. Appoints the following Board members/alternate members to the Private Sector Advisory Group for its first term in accordance with the Terms of reference as set out in Annex XIX to this document:
    
    1. Mr. Zaheer Fakir, panel member;
    2. Mr. Anton Hilber, panel member;
    3. Mr. Farrukh Iqbal Khan, panel member; and
    4. Mr. Matthew Kotchen, panel member;
11. Requests the Secretariat to initiate an open call for nominations, including from Board members, for the selection of four private sector representatives from developing countries, four private sector representatives from developed countries, and two civil society representatives, for membership of the Private Sector Advisory Group during its first term, in accordance with the Terms of reference as set out in Annex XIX to this document, with the appointment of nominated representatives subject to the approval by the Co‐Chairs;
12. Requests the Secretariat to convene the first meeting of the Ethics and Audit Committee and the Private Sector Advisory Group, in consultation with their respective Chairs, via videoconference prior to the first meeting of the Board in 2014; and
13. Invites the Ethics and Audit Committee and Private Sector Advisory Group to develop and present to the Board, at its first meeting in 2014, agreed work plans for their first 12 months of operation, which should take into account the Terms of reference, as set out in Annexes XVIII and XIX to this document, respectively.

The Board, having reviewed document GCF/B.05/14 Modalities for Readiness and Preparatory Support:

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. Decides that the Fund will provide readiness and preparatory support to:
   
   1. Enable the preparation of country programmes providing for low‐emission, climate‐resilient development strategies or plans;
   2. Support and strengthen in‐country, Fund‐related institutional capacities, including for country coordination and multi‐stakeholder consultation mechanisms as it relates to the establishment and operation of national designated authorities and country focal points;
   3. Enable implementing entities and intermediaries to meet the Fund’s fiduciary principles and standards, and environmental and social safeguards, in order to directly access the Fund;
3. Notes the importance of engaging with existing readiness initiatives and programmes at international, national and regional levels to enhance learning and ensure coherence, and mandates the Secretariat to play a leading coordinating role in this regard;
4. Further notes:
   
   1. That the scope of readiness and preparatory support could evolve over time and be tailored to address countries’ specific circumstances;
   2. The importance of readiness and preparatory support for effective private sector engagement, particularly for small‐ and medium‐sized enterprises and local financial intermediaries in developing countries, and activities to enable private sector involvement in small island developing States (SIDS) and least developed countries (LDCs);
   3. That readiness and preparatory support could be provided to all eligible countries, and that its allocation would take into account the urgent and immediate needs of developing countries that are particularly vulnerable to the adverse impacts of climate change, including LDCs, SIDS and African States;
5. Requests the Secretariat to begin advancing readiness in developing countries in the context of its communication and outreach activities;
6. Further requests the Secretariat to present to the Board, at its first meeting in 2014, a detailed programme of work relating to the provision of readiness and preparatory support, with relevant timelines and resource needs, which may include, inter alia:
   
   1. Facilitating the assessment of readiness and support needs;
   2. Country programming and portfolio development, including how countries may translate the objectives of the Fund into regional, national or sub‐national priorities, given the initial result areas and performance indicators of the Fund;
   3. Outreach activities, including regional workshops, aiming to raise awareness of relevant considerations of low‐emission, climate‐resilient development strategies and associated country programmes that would allow countries to identify and effectively communicate their priorities to the Fund, and to access resources; the selection, establishment, role and responsibilities of national designated authorities (NDAs) or country focal points, including in coordinating and facilitating multi‐ stakeholder consultation; and the procedures for selecting, nominating and accrediting sub‐national, national and regional implementing entities, and the associated fiduciary principles, and environmental and social safeguards;
   4. Advancing knowledge sharing and peer‐to‐peer learning among relevant partners and practitioners engaged in readiness and preparatory support, with a view to fostering coordination and coherence, as well as facilitating opportunities for South‐South learning;
   5. Advisory services, including a help desk to support NDAs or country focal points, prospective national and sub‐national implementing entities, and other key stakeholders;
   6. Facilitating, in collaboration with relevant partners, arrangements for training, mentorship and twinning in support of NDAs or country focal points and sub‐national and national entities seeking accreditation with the Fund;
7. Further requests the Secretariat to outline a system for determining the allocation of resources, separate from the support provided from the Secretariat’s administrative budget, for readiness and preparatory support, for consideration by the Board at its first meeting in 2014;
8. Decides that the urgent need to provide readiness and preparatory support should be reflected in the administrative budget and staffing of the Secretariat;
9. Further requests the Secretariat to mobilize resources for readiness and preparatory support.

The Board, having reviewed document GCF/B.05/16 Interim Information Disclosure Practice:

1. Adopts the Interim Information Disclosure Practice, set out in Annex XX to this document;
2. Requests the Secretariat to develop in 2014 a comprehensive draft information disclosure policy, based on the negative list approach described in Section 3.3 of document GCF/B.04/10;
3. Decides that the Interim Information Disclosure Practice will remain in force until the Board adopts a comprehensive information disclosure policy;
4. Requests the Secretariat to incorporate, to the extent not covered under the Interim Information Disclosure Practice, provisions on disclosure of information in all documents submitted to the Board.

The Board, having considered documents GCF/B.05/17 Draft Arrangements between the Conference of the Parties to the UNFCCC and the Green Climate Fund and GCF/B.05/17/Add.01 (Addendum):

1. Approves the draft arrangements between the Conference of the Parties and the Green Climate Fund set out in Annex XXI to this document;
2. Requests the current Co‐Chairs to inform the Co‐Chairs of the Standing Committee on Finance of the outcome of the Board’s deliberations on the arrangements;
3. Requests the Interim Secretariat to transmit to the secretariat of the UNFCCC the draft arrangements between the Conference of the Parties and the Green Climate Fund as approved by it, for transmittal to the Conference of the Parties for its subsequent agreement at its nineteenth session, in accordance with decision 7.CP/18.

The Board:

1. Decides that the Fund’s resource mobilization process will commence through an initial resource mobilization process as soon as possible and transition subsequently to a formal replenishment process;
2. Further decides that the first two meetings of the Board in 2014 will prioritize and focus on working towards completing the essential requirements for the Fund to receive, manage, programme and disburse financial resources;
3. Requests the Secretariat to make arrangements with all interested contributors, facilitating a collective engagement in the initial resource mobilization process no later than three months after the essential requirements for the Fund to receive, manage, programme and disburse financial resources, as outlined in Annex XXII to this document, have been met as decided by the Board;
4. Further decides that the policies, procedures and documents necessary to trigger the first formal replenishment meeting will be decided upon at the first Board meeting following the completion of the process outlined in paragraph (c) above.

The Board:

Requests the current Co‐Chairs, assisted by the Interim 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, presented in Annex II to document GCF/B.05/19, taking into consideration the comments and amendments made and decisions taken at the meeting, and forward it to the United Nations Framework Convention on Climate Change (UNFCCC) secretariat.

The Board, having considered document GCF.B.05/20 Work Plan of the Board for 2014:

1. Takes note of the information presented in document GCF/B.05/20;
2. Requests the Secretariat to revise document GCF/B.05/20, taking into account the comments made by the Board, and to circulate it to the Board for a decision between meetings on a no‐objection basis within two weeks from the end of this meeting.

The Board, having reviewed document GCF/B.05/21 Administrative Budget of the Fund for 2014:

1. Approves, from the resources available or to be made available in the GCF Trust Fund, the administrative budget of the Fund for the period from 1 January 2014 to 31 December 2014 of up to US$ 18,817,566, as set out in Annex XXIII to this document;
2. Notes that the Secretariat will continue to operate efficiently and will seek to maximize savings where possible;
3. Approves, from the resources available or to be made available in the GCF Trust Fund, the budget cost of staff salaries and emoluments for the three‐year contract period as follows:
   
   1. For 2015: US$ 12,042,101;
   2. For 2016: US$ 12,403,364;
   3. For 2017: US$ 3,125,835.
4. Authorizes the Interim Trustee to make cash transfers from the GCF 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. In the event that the Interim Trustee determines that the amount of available resources in the GCF Trust Fund is insufficient to cover the total estimated budgets specified in paragraphs (a) and (c) above, the Board authorizes the Interim Trustee to make cash transfers to the Secretariat and the Interim Trustee up to the pro rata amount of available resources in the GCF Trust Fund to cover the total estimated budget as determined by the Interim Trustee;
5. Notes that the Secretariat will submit proposals for the full administrative budget of the Fund for 2015, 2016 and 2017 in due course.

The Board, having reviewed document GCF/B.05/22 Agreements with the Interim Trustee:

1. Approves the Agreement on the Terms and Conditions for the Administration of the Green Climate Fund Trust Fund between the Green Climate Fund and the International Bank for Reconstruction and Development, serving as the Interim Trustee of the Green Climate Fund Trust Fund, presented in Annex XXIV to this document;
2. Authorizes the Executive Director of the Fund to execute, on behalf of the Fund, that Agreement, as well as the contribution agreements to be executed between the Fund, the Interim Trustee and the Contributors, as described in the Agreement;
3. Approves the Amendment to the Amended and Restated Transfer Agreement under the Green Climate Fund Trust Fund (MTO No. 069022), presented in Annex XXV to this document.

The Board:

1. Reaffirms taking a gender‐sensitive approach as outlined in the Governing Instrument;
2. Decides to consider, at its first meeting in 2014, a gender‐sensitive approach to the Fund’s objectives and operational policies;
3. Requests the Secretariat to present for consideration by the Board, at its first meeting in 2014, including through consultations with relevant bodies and observer organizations, a working document setting out the options for a Fund‐wide gender‐sensitive approach.

The Board:

1. Takes note of the information presented in document GCF/B.05/Inf.05;
2. Requests the Secretariat to prepare a document on the participation of observers in Board meetings for the consideration by the Board at its first meeting in 2014.

The Board:

1. Decides that its first meeting in 2014 will take place on 19‐21 February 2014 in Indonesia;
2. Decides that the arrangements for this meeting will be made according to the practice of the previous meetings that took place away from the headquarters.

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; (v)    Decision that sufficient resources should be provided for readiness and preparatory support;
   5. 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.

The Board, having considered document GCF/B.06/Inf.05 Logo of the Fund:

1. Requests the Secretariat to coordinate the re-design of the colour and shape of the proposed logo with the logo designer;
2. Requests the Logo Selection Panel to review the revised design and, if agreed, forward it to the Board for approval.

The Board, having considered document GCF/B.23/07 titled “Audited financial statements of the Green Climate Fund for the year ended 31 December 2018”:

Approves the audited financial statements of the Green Climate Fund for the year ended 31 December 2018 as contained in annex I.

The Board, having considered document GCF/B.23/21/Add.01/Rev.01 titled “Report on the activities of the Co-Chairs – Addendum I: Updated workplan of the Board for 2019” and document GCF/B.23/21/Add.02 titled “Report on the activities of the Co-Chairs – Addendum II: Approach to developing the environmental and social safeguards of GCF”:

1. Takes note of the updated Board workplan for 2019, as set out in annex II;
2. Decides to defer consideration of the Evaluation Policy of the GCF to its twenty-fourth meeting;
3. Also decides to defer consideration of the following matters and requests the Secretariat, in consultation with the Co-Chairs and the relevant committees, panels and groups of the Board, to progress its work on these matters and present these for consideration by the Board at its twenty-fifth meeting:
   
   1. Initial analysis of options to minimize the effects of currency fluctuations on the commitment authority of GCF requested pursuant to decision B.21/14, paragraph (j); and
   2. Review of the effectiveness of the committees, panels and group established by the Board requested pursuant to decision B.20/04, paragraph (b);
4. Further decides to delegate the following matter to the Secretariat with the proviso to bring any recommendations requiring Board attention back to the Board:
   
   1. Reviewed administrative guidelines on procurement requested pursuant to decision B.08/21, decision B.12/39, paragraph (a), and decision B.17/01, paragraph (c);
5. Requests the Secretariat to conduct further consultations with 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 identifying existing gaps and needed improvements, and to presenting a report with recommendations on the outcomes of the review for consideration by the Board when the matter is considered;
6. Takes note of the proposed approach and options for developing the GCF environmental and social safeguards contained in the annex to document GCF/B.23/21/Add.02;
7. Requests the Secretariat to proceed with the development of the GCF environmental and social safeguards, based on the approach presented in the annex to document GCF/B.23/21/Add.02, section 4.1, titled “GCF interim environmental and social safeguards with revisions and enhancements”;
8. Approves a budget of USD 399, 200 for the development of the GCF environmental and social safeguards. This amount will be added to the Secretariat’s administrative budget; and
9. Further requests the Secretariat to present the GCF environmental and social safeguards for the Board’s consideration at its second meeting in 2021.

The Board, having considered document GCF/B.23/09 titled “Co-Chairs consultations: decision-making in the event that all efforts at reaching consensus have been exhausted”:

1. Adopts the procedures for adopting decisions in the event that all efforts at reaching consensus have been exhausted as set out in annex III;
2. Confirms that the procedures for adopting decisions in the event that all efforts at reaching consensus have been exhausted shall only be used as a last resort;
3. Requests the Co-Chairs to continue to enhance the effectiveness of pre-Board meeting consultations in an open, inclusive, consultative and transparent matter; and
4. Also requests the Co-Chairs to consult and present to the Board for its consideration, not later than the twenty-fourth meeting of the Board, a proposal regarding the next steps in the event that during the application of the procedure referred to in section VI of annex III, any Board member expresses the view that they are unable to join consensus regarding the outcome of such procedure.

The Board, having considered document GCF/B.23/10 titled “Eighth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”:

Requests the Co‐Chairs, assisted by the Secretariat, to finalize the “Eighth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”, presented in annex II to document GCF/B.23/10, taking into consideration the comments made and decisions taken at the twenty-third meeting of the Board, and submit the revised report to the United Nations Framework Convention on Climate Change secretariat no later than 12 weeks prior to the twenty-fifth session of the Conference of the Parties, in accordance with decision 7/CP.20, paragraph 23.

The Board, having considered the document titled “Report of the Performance Oversight Committee of the Heads of Independent Units to the Board”:

1. Takes note of the report of the Performance Oversight Committee as contained in annex IV;
2. Decides, based on the recommendations by the Performance Oversight Committee, to convey its intention to offer reappointment to the Heads of the following Independent Units:
   
   1. Independent Integrity Unit;
   2. Independent Evaluation Unit; and
   3. Independent Redress Mechanism Unit;
3. Requests the Co-Chairs to conduct the necessary work to make sure that all Heads of Independent Units will be in post, including negotiating the terms of the contract for the reappointed Heads of Independent Units, in accordance with the approved detailed terms of reference for Heads of Independent Units (annex VI to document GCF/B.22/21), in prior consultation with the Budget Committee, and signing, on behalf of the GCF, the new employment contract between the said Heads of Independent Units and the GCF;
4. Also requests the Performance Oversight Committee to consider, in close consultation with the GCF Secretariat and the Budget Committee, a policy related to the performance-based increment increases in payment for the Heads of Independent Units and submit it to the Board for its consideration;
5. Further requests the Performance Oversight Committee to consider the development of the annual performance evaluation of the three Heads of Unit and the Executive Director, in line with the relevant decisions and guidelines including annex X to the approved decision B.17/12 titled “Performance criteria and measurement procedures of the Executive Director of the Green Climate Fund Secretariat”, and to submit the same to the Board for its consideration; and
6. Decides that the Performance Oversight Committee will engage an independent external human resources firm for the purpose of the following tasks, in consultation with the Budget Committee, following a procurement process in accordance with the Administrative Guidelines on Procurement and supported by the Secretariat:
   
   1. Assisting the Co-Chairs in negotiating and concluding the terms of contract with the reappointed Heads of Independent Units;
   2. Assisting the Performance Oversight Committee in developing and carrying out the annual regular performance evaluation of the Heads of Independent Units and the Executive Director; and
   3. Assisting the Performance Oversight Committee in developing the policy related to the introduction of performance-based pay increase as referred to in paragraph 4 above, if need arises.

The Board, having considered document GCF/B.23/20 titled “Forward-Looking Performance Review of the GCF”:

1. Takes note of the first review of the performance of the GCF by the Independent Evaluation Unit as requested in decision B.21/17;
2. Also takes note of the findings and recommendations presented in the final report of the Forward-Looking Performance Review of the GCF;
3. Requests the Secretariat to provide a management response to the Forward-Looking Performance Review of the GCF to the Board at its twenty-fourth meeting; and
4. Decides to continue its consideration of this matter at the twenty-fourth meeting of the Board.

The Board, having considered document GCF/B.23/03 titled “Period of the first replenishment of the GCF”:

1. Decides that the first replenishment of the GCF would secure financing for a four-year programming period from 1 January 2020 to 31 December 2023; and
2. Requests the Secretariat to incorporate the four-year replenishment period in the update to the policies for contributions for the first replenishment of the GCF.

The Board, having considered document GCF/B.23/11 titled “Policy on ethics and conflicts of interest for active observers of the Green Climate Fund”:

1. Adopts the Policy on Ethics and Conflicts of Interest for Active Observers of the Green Climate Fund as set out in annex V to this document;
2. Also decides to amend section III, paragraph 6 of the Policy on Prohibited Practices, adopted by the Board pursuant to decision B.22/19, paragraph (a), to include the definition of “Active Observers” as follows: “Active Observers” has the meaning given to that term in the Rules of Procedure of the Board;
3. Further decides to amend the definition of “Covered Individual” in section III, paragraph 6(f) of the Policy on Prohibited Practices, adopted by the Board pursuant to decision B.22/19, paragraph (a), and replace it with the following: “Covered Individual” means GCF Personnel, Co-Chairs of the Board, Board and Alternate Members, their Advisers, Board- Appointed Officials, External Members and Active Observers; and
4. Requests the Secretariat to publish a consolidated version of the Policy on Prohibited Practices taking into account the amendments referred to in paragraphs (b) and (c) above.

The Board:

1. Takes note of the oral report made by the two Board members entrusted by the Co-Chairs with facilitating the discussions on the updated Gender Policy;
2. Welcomes the progress made in the consultations on the document;
3. Requests the Secretariat to present an assessment of implementation considerations, including direct costs and benefits associated with the implementation of the Gender Policy, as well as an assessment of the capacity within the Secretariat, direct access entities and other accredited entities, and national designated authorities/focal points to implement such Policy; and
4. Also requests the Secretariat to present for consideration of the Board at its twenty-fourth meeting a revised updated Gender Policy and an updated Gender Action Plan, building on the progress made in the consultations on the draft document so far and the assessment of the Secretariat on the implementation considerations, with a view to circulate it to Board members and alternate members with sufficient time for consultations to occur between Board members and alternate members prior to its finalization and publication in accordance with paragraph 21 of the Rules of Procedure of the Board.

The Board, having considered document GCF/B.23/02 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   
   1. Funding proposal 107 titled “Supporting Climate Resilience and Transformational Change in the Agriculture Sector in Bhutan”, by the United Nations Development Programme, as contained in document GCF/B.23/02/Add.01 and Add.14;
   2. Funding proposal 108 titled “Transforming the Indus Basin with Climate Resilient Agriculture and Water Management”, by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.23/02/Add.02 and Add.14;
   3. Funding proposal 109 titled “Safeguarding rural communities and their physical and economic assets from climate induced disasters in Timor-Leste”, by the United Nations Development Programme, as contained in document GCF/B.23/02/Add.03 and Add.14;
   4. Funding proposal 110 titled “Ecuador REDD-plus RBP for results period 2014”, by the United Nations Development Programme, as contained in document GCF/B.23/02/Add.04 and Add.14;
   5. Funding proposal 111 titled “Promoting climate-resilient forest restoration and silviculture for the sustainability of water-related ecosystem services”, by the InterAmerican Development Bank, as contained in document GCF/B.23/02/Add.05 and Add.14;
   6. Funding proposal 112 titled “Addressing Climate Vulnerability in the Water Sector (ACWA) in the Marshall Islands”, by the United Nations Development Programme, as contained in document GCF/B.23/02/Add.06 and Add.14;
   7. Funding proposal 113 titled “TWENDE: Towards Ending Drought Emergencies: Ecosystem Based Adaptation in Kenya’s Arid and Semi-Arid Rangelands”, by the International Union for Conservation of Nature, as contained in document GCF/B.23/02/Add.07 and Add.14;
   8. Funding proposal 114 titled “Program on Affirmative Finance Action for Women in Africa (AFAWA): Financing Climate Resilient Agricultural Practices in Ghana”, by the African Development Bank, as contained in document GCF/B.23/02/Add.10;
   9. Funding proposal 115 titled “Espejo de Tarapacá”, by MUFG Bank, Ltd., as contained in document GCF/B.23/02/Add.11; and
   10. Simplified approval process (SAP) funding proposal 007 titled “'Integrated Climate Risk Management for Food Security and Livelihoods in Zimbabwe focusing on Masvingo and Rushinga Districts”, by the World Food Programme, as contained in document GCF/B.23/02/Add.12 and Add.14;
2. Approves funding proposal 107 for the amount of USD 25,347,194, submitted by the United Nations Development Programme, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
3. Also approves funding proposal 108 for the amount of USD 34,990,832, submitted by the Food and Agriculture Organization of the United Nations, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
4. Further approves funding proposal 109 for the amount of USD 22,356,805, submitted by the United Nations Development Programme, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
5. Approves funding proposal 110 for the amount of USD 18,571,766, submitted by the United Nations Development Programme, subject to the conditions set out annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
6. Also approves funding proposal 111 for the amount of USD 35,000,000, submitted by the Inter-American Development Bank, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
7. Further approves funding proposal 112 for the amount of USD 18,631,216, submitted by the United Nations Development Programme, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
8. Approves funding proposal 113 for the amount of USD 23,152,082, submitted by the International Union for Conservation of Nature, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
9. Also approves funding proposal 114 for the amount of USD 20,000,000, submitted by the African Development Bank, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.10; and
   
   1. Recognizes that there is an opportunity to explore further options to improve the financial structure regarding increasing the grant portion of the GCF funding, to the benefit of the most vulnerable women; and encourages the accredited entity, in consultation with the national designated authority, to consider using the Policy on Restructuring and Cancellation to amend funding proposal 114 accordingly;
10. Further approves funding proposal 115 for the amount of USD 60,000,000, submitted by MUFG Bank, Ltd., subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.11;
11. Approves simplified approval process (SAP) funding proposal 007 for the amount of USD 8,858,316, submitted by the World Food Programme, subject to the conditions set out in annex XI and in the respective term sheet set out in document GCF/B.23/02/Add.14;
12. Reaffirms that, pursuant to annex IV to decision B.17/09, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition approved by the Board in this decision and in the decision accrediting the relevant accredited entity; and
13. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the policy on fees and the general principles and indicative list of eligible costs covered under GCF fees and project management costs adopted by the Board pursuant to decision B.19/09.

The Board, having considered document GCF/B.23/05 titled “Updated accreditation framework”:

1. Decides that the accreditation process as defined in annex I to decision B.07/02 is considered complete upon the effectiveness of the accreditation master agreement in Stage III of the accreditation process, and that such date of effectiveness shall serve as the start of the accreditation term for all entities accredited to GCF, including those accredited prior to the date of this decision;
2. Recalling decision B.14/08, paragraph (d)(i), decision B.18/04, paragraph (c), decision B.19/13, paragraph (c), and decision B.21/16, paragraph (e), decides that future accreditation decisions by the Board should aim to bring forward accredited entities that fulfil the mandate on balance, diversity and coverage and advance the objectives of GCF, and to that end decides to prioritize up to the end of the twenty-fourth meeting of the Board the following, not listed in order of priority:
   
   1. National direct access entities nominated for accreditation by national designated authorities or focal points of countries that do not have a national accredited direct access entity;
   2. Private sector entities, in particular those in developing countries, seeking a balance of diversity of entities in line with decision B.09/07, paragraph (g), and decision B.10/06, paragraph (h);
   3. Entities responding to requests for proposals issued by GCF, for example, including a pilot phase for enhancing direct access; a pilot programme to support micro, small, and medium-sized enterprises; and a pilot programme to mobilize resources at scale in order to address adaptation and mitigation;
   4. Accredited entities seeking fulfilment of their conditions for accreditation; and
   5. Accredited entities requesting upgrades in their accreditation scope;
3. Agrees the principle of the project-specific assessment approach, as contained in section VII in annex II to document GCF/B.23/05, that combines assessments undertaken during the existing accreditation and proposal approval processes in a fit-for-purpose manner; and
4. Decides to defer its consideration of the updated accreditation framework and the implementation arrangements and budget for the project-specific assessment approach until the twenty-fourth meeting of the Board.