Fourth meeting of the GCF Board (B.04)

Songdo, Incheon, Republic of Korea
26 - 28 June 2013

Meeting agenda
Item Title
1. Opening of the meeting, adoption of the agenda, organization of work and adoption of the report of the third meeting
2. Report on activities of the Co-Chairs and the Interim Secretariat
3. Establishment of the independent Secretariat
3.a. Selection of the Executive Director
3.b. Administrative policies and procedures of the independent Secretariat
4. Business model framework
4.a. Objectives, results and performance indicators
4.b. Country ownership
4.c. Access
4.d. Financial instruments
4.e. Private Sector Facility
4.f. Structure and organization
5. Additional rules of procedure of the Board
5.a. Information disclosure, including webcasting
5.b. Participation of advisers
5.c. Voting rules
6. Arrangements between the Conference of the Parties and the Fund
7. Logo of the Fund
8. Communication strategy
9. Relationship with United Nations Framework Convention on Climate Change and external bodies
10. Status of resources
11. Co-Chairs
12. Other business
13. Report of the meeting
14. Closure of the meeting

The Board:

  1. Adopted the report of the third meeting, contained in document GCF/B.01‐13/Drf.04;
  2. Agreed to publish it on the Fund’s website (document GCF/01‐13/13 Report of the Third Meeting of the Board, 13‐15 March 2013).

The Board:

  1. Decided by consensus to select Ms. Hela Cheikhrouhou for the post of the Executive Director of the Fund;
  2. Requested the Interim Secretariat to engage an executive search firm to facilitate the negotiation of the terms of the contract that will be in accordance with the approved terms of referencei (annex to Board decision B.01‐13/07) with Ms. Cheikhrouhou, including on a remuneration package that will be in accordance with Board decision B.01‐13/07, with the terms of the contract being subject to the approval by the Co‐Chairs;
  3. Authorized the Co‐Chairs to sign, on behalf of the Fund, the contract between Ms. Cheikhrouhou and the Fund.

The Board, having reviewed document GCF/B.BM‐2013/01 Administrative Framework for the Green Climate Fund,

  1. Approved the following hybrid option as the basis for the administrative framework for the Fund:
    1. Privileges and immunities for the Fund's staff to be established consistent with paragraph 8 of the Governing Instrument, with reference to those provided to the International Fund for Agricultural Development and other international financial institutions that operate effectively internationally through appropriate bilateral and multilateral agreements; and
    2. The Fund's administrative policies, including for human resources, procurement, travel and finance, are to be based on those used by the Asian Development Bank;
  2. Requested the Interim Secretariat to undertake work on obtaining administrative support from another organisation to facilitate the transition from the Interim Secretariat to the independent Secretariat, for consideration and adoption by the Board at its September 2013 meeting;
  3. Further requested the Interim Secretariat to initiate work on the Fund's administrative policies based on the hybrid option, and advance work as rapidly as possible and report on progress to the Board at its September 2013 meeting;
  4. Authorized the Executive Director to develop the necessary administrative guidelines for the operations of the independent Secretariat based on the direction provided by the Board.

The Board:

  1. Noted convergence that the Fund will have a strategic focus on climate mitigation and adaptation, and also seek to maximize sustainable development;
  2. 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. Decided to consider further the initial result areas of the Fund, with an aim to achieve substantial progress at its September 2013 meeting;
  4. Further decided to consider the core performance indicators to be employed by the Fund to measure performance against the objectives of the Fund and the mitigation and adaptation results to be considered by the Board at its September 2013 meeting;
  5. Further decided to consider the expected impacts and role of the Fund in the initial result areas at its second meeting in 2014.

The Board:

  1. Reaffirmed that country ownership and a country‐driven approach are core principles of the Fund;
  2. Noted convergence on the importance of readiness and preparatory support for country ownership practices;
  3. Further noted that countries may designate a national designated authority (NDA), in conformity with the Governing Instrument, or mandate a country focal point to interact with the Fund;
  4. Decided to consider, at its September 2013 meeting, countries’ transparent no‐objection procedure;
  5. Decided that the NDA or focal point will:
    1. recommend to the Board funding proposals in the context of national climate change strategies and plans, including through consultation processes;
    2. facilitate the communication of nominations of entities to the Fund;
    3. seek to ensure consistency of funding proposals from national, subnational, regional and international intermediaries and implementing entities with national plans and strategies;
    4. implement the no‐objection procedure; and
    5. act as the focal point for Fund communication;
  6. Further decided that countries should have flexibility in relation to the location, structure, operation and governance of NDAs or focal points;
  7. Requested the Secretariat to make all necessary steps to open a call to developing countries to start the processes of designating a NDA or focal point as early as possible, and preferably before June 2014;
  8. Requested the Interim Secretariat to reflect in the document on readiness and preparatory support, to be prepared for the September 2013 Board meeting, options to enhance country ownership, including possible support to, NDAs or focal points;
  9. Decided to consider, at its first meeting in 2014:
    1. Best practices for the establishment and composition of NDAs or focal points; and
    2. Best‐practice options for country coordination and multi‐stakeholder engagement, including in the context of the development of funding proposals.

The Board:

  1. Noted the direction of the Governing Instrument that the Fund will provide simplified and improved access to funding, to encourage a country‐driven approach;
  2. Noted that the Board will consider additional modalities that further enhance direct access, including through funding entities with a view to enhancing country ownership of projects and programmes; and that the Fund will provide for readiness and preparatory activities and technical assistance, such as the preparation or strengthening of low‐ emission development strategies or plans, NAMAs, NAPs, NAPAs, and for in‐country institutional strengthening, including the strengthening of capacities for country coordination and to meet fiduciary principles and standards and environmental and social safeguards, in order to enable countries to directly access the Fund;
  3. Noted convergence on the need to develop the Fund’s own access modalities, including, inter alia, accreditation procedures, best‐practice fiduciary principles and standards and environmental and social safeguards;
  4. Further noted convergence on a phased approach, during which the Fund will use, on an interim basis, the accreditation procedures, including best‐practice fiduciary principles and standards and environmental and social safeguards, of other relevant funds;
  5. Noted the guidance contained in the Governing Instrument, which mandated the Board to consider additional methodologies that further enhance direct access, including through funding entities, with a view to enhancing country ownership of projects and programmes;
  6. Decided to consider at its September 2013 meeting:
    1. interim accreditation procedures, including best‐practice fiduciary principles and standards and environmental and social safeguards and any other relevant criteria to enhance transparency, effectiveness and efficiency, used by other relevant funds;
    2. the elaboration of criteria for the accreditation of sub‐national, national, regional and international intermediaries and implementing entities; and
    3. an assessment, against the criteria, of existing accredited national, regional and international intermediaries and implementing entities by other relevant funds, with a view to agreeing whether or not those intermediaries and implementing entities should be provided with interim accreditation;
  7. Decided to consider at its first meeting in 2014 additional modalities that further enhance direct access, including through funding entities with a view to enhancing country ownership of projects and programmes;
  8. Further decided to consider the process for transitioning from the interim accreditation procedures, fiduciary principles and standards and environmental and social safeguards to the Fund’s own accreditation procedures, including best‐practice fiduciary principles and standards and environmental and social safeguards, at its second meeting in 2014.

The Board:

Decided to consider the terms and criteria of the grants and concessional lending to be deployed by the Fund for mitigation and adaptation through accredited national, regional and international intermediaries and implementing entities at its September 2013 meeting.

The Board:

  1. Decided that the Private Sector Facility will operate efficiently and effectively under the guidance and authority of the Board as an integral component of the Fund, including in relation to the result areas and specific core performance indicators, where relevant;
  2. Decided that the Private Sector Facility will address barriers to private sector investment in adaptation and mitigation activities, such as market failures, insufficient capacity and lack of awareness, in order to mobilize private capital and expertise at scale in accordance with national plans and priorities. This will include facilitating and enhancing the participation of national, regional and international private sector actors in developing countries;
  3. Recalled that, in line with the Governing Instrument, the Private Sector Facility will promote the participation of private sector actors in developing countries, in particular local actors, including small and medium sized enterprises and local financial intermediaries. The Facility will also support activities to enable private sector involvement in small island developing States and least developed countries. Modalities will be developed for consideration by the Board;
  4. Acknowledged that private sector investment in general relies on readiness and enabling environments, the enhancement of which could be supported by the Fund at large;
  5. Emphasized the need for the Private Sector Facility to pay specific attention to Africa and to adaptation activities at the national, regional and international levels;
  6. Acknowledged the need to mobilize funds at scale from, inter alia, institutional investors, such as pension funds and sovereign wealth funds, and to design modalities to that end;
  7. Decided that the Private Sector Facility will seek efficient solutions that minimize market distortions and moral hazard in the use of the Fund’s resources by using, inter alia, competitive processes;
  8. Decided that the Private Sector Facility will initially focus on grants and concessional lending and will also draw on a broad range of other financial instruments and modalities to achieve its objectives;
  9. Decided to establish a Private Sector Advisory Group that will make recommendations to the Board on Fund‐wide engagement with the private sector and modalities to that end. The Private Sector Advisory Group will comprise two developing country Board members, two developed country Board members, up to four private sector representatives from developing countries and up to four private sector representatives from developed countries, up to two civil society representatives, subject to the criteria determined through the terms of reference. Requested the Interim Secretariat to submit draft terms of reference, bringing in the views of independent experts, and including the criteria for selection, term of office, and replacement of these members, for consideration by the Board at its September 2013 meeting, with a view to establishing the Private Sector Advisory Group at that meeting;
  10. Decided that an appropriate risk management framework will be developed, enabling the Fund to exert due diligence and manage its risks prudently. For this purpose, the Board decided to establish a Risk Management Committee, and requested the Interim Secretariat to submit draft terms of reference for consideration by the Board at its September 2013 meeting, drawing on independent expertise;
  11. Decided to establish an Investment Committee that will review investment proposals and instruments and recommend their approval in accordance with social and environmental safeguards and the Fund’s objectives and the risk management framework. Requested the Interim Secretariat to submit draft terms of reference, taking into account delegating the appropriate level of final approval authority to the Committee, for consideration by the Board at its September 2013 meeting, drawing on independent expertise;
  12. Decided that the Private Sector Facility, in accordance with non‐objection procedures and in order to ensure consistency with national climate strategies and plans and a country‐driven approach:
    1. Will commence its operations through accredited national, regional and international implementing entities and intermediaries; and
    2. May over time work directly with private sector adaptation and mitigation actors at the national, regional and international levels, subject to consideration by the Board of a phased approach.

The Board:

  1. Noted convergence that the initial structure and organization of both the Fund and the Secretariat should be thematic, with a Private Sector Facility, a strong country and programmatic focus, internal coherence and linkages, and the flexibility to evolve over time;
  2. Requested the Executive Director, with the support of the Interim Secretariat, to prepare for consideration by the Board at its September 2013 meeting, an initial structure that can be scaled up, organizational diagrams and a staffing table covering the core, operating and other relevant functions of a flexible and efficient Secretariat, as well as the cost, procedure, timeframe and process for implementing the proposed structure and organization, based on the views expressed by the Board during its June 2013 meeting;
  3. Agreed to consider, at its September 2013 meeting, the establishment and terms of reference of permanent and ad hoc committees of the Board that will assist the Board in fulfilling its roles and functions;
  4. Agreed to consider, at its first meeting in 2014, mechanisms to draw on appropriate expert and technical advice, including independent scientific and technical advice and from the other relevant thematic bodies, for the Board;
  5. Recognized that the Fund will have a Trustee with administrative competence to manage the financial assets of the Fund, in accordance with the Governing Instrument;
  6. Established independent evaluation and integrity units and an independent redress mechanism in accordance with the Governing Instrument;
  7. Agreed to consider, at its first meeting in 2014, the terms of reference of the independent evaluation and integrity units and the independent redress mechanism.

The Board, having reviewed document GCF/B.04/10 Information Disclosure, including Webcasting,

  1. Decided to adopt a negative list approach for the long‐term structure of the Fund’s information disclosure policy, but to use a simplified information disclosure practice in the interim, while the negative list approach is being developed;
  2. Requested the Interim Secretariat to prepare a draft interim information disclosure practice for consideration by the Board at its September 2013 meeting;
  3. Requested the independent Secretariat to develop in 2014 a comprehensive draft information disclosure policy based on the negative list approach;
  4. Decided that full, non‐executive sessions of the Board will be subject to recording, and those recordings will be made available on the website of the Fund, through registration only, within three weeks of each Board meeting, and to review the matter in light of experience gained and the usage statistics of the service.

The Board, having reviewed document GCF/B.04./11, Participation of Advisers in Board Proceedings,

  1. Adopted the Guidelines on the participation and conduct of advisers in Board meetings as set out in Annex I to this document;
  2. Requested the Interim Secretariat to publish the Guidelines on the Fund’s website;
  3. Decided to implement Option 2 as presented in paragraph 18 of document GCF/B.04/11 (‘Funding would be provided from the administrative budget of the Fund for the travel costs associated with Board meetings of one designated adviser per eligible developing country Board member and alternate member’) as the basis for providing funding for the participation of adviser travel to meetings of the Board until the adoption of the Fund’s overall travel policy, and requested the Interim Secretariat to reflect this in the Fund’s overall travel policy.

The Board:

Requested the Co‐Chairs to continue consulting with the Co‐Chairs of the Standing Committee on Finance and to develop the draft arrangements between the Conference of the Parties and the Fund for the consideration by the Board at its September 2013 meeting.

The Board:

  1. Took note of the extended deadline for submissions of 28 July 2013;
  2. Constituted the Selection Panel, whose work will be supported by the Interim Secretariat, comprising:
    1. The following four members/alternate members of the Board: Ms. Ana Fornells de Frutos, Mr. Hong‐Sang Jung, Mr. Adam Kirchknopf, Mr. Farrukh I. Khan;
    2. [...] as the representative of civil society;ii
    3. (Mr. Miles Austin (CMIA) as the representative of the private sector;
    4. A well‐known graphic designer with substantial experience in designing logos; and
    5. The Director of the Interim Secretariat.
  3. Requested the Interim Secretariat, under the guidance of the Co‐Chairs, to identify a well‐known graphic designer referred to in paragraph (b) (iv) above, and to invite him/her to become a member of the Panel on a pro‐bono basis;
  4. Authorized the Selection Panel to establish a set of criteria to evaluate the entries and take a decision based on these pre‐determined criteria and to hold meetings, arranged with the assistance of the Interim Secretariat, as necessary for the conduct of its work;
  5. Requested the Interim Secretariat, in accordance with the terms and conditions of the competition, to present a shortlisted set of 100 entries to the Selection Panel;
  6. Requested the Selection Panel to assess the entries, and make a recommendation on the successful logo to the Board at its September 2013 meeting.

The Board, having reviewed document GCF/B.04/13 Concept Note on the Development of a Communication Strategy,

  1. Decided to extend the timeframe for the completion of the communications strategy from September 2013 to the first Board meeting in 2014;
  2. Approved the terms of reference for the development of a communication strategy, contained in Annex II to this document;
  3. Requested the Interim Secretariat, under the guidance of the Co‐Chairs, to develop the communications strategy with the assistance of a consultant or consultants, on the basis of the terms of reference in Annex II to this document, for the consideration by the Board at its first meeting in 2014;
  4. Acknowledged that US$ 35,000 from the administrative budget of the Fund for the period from 1 November 2012 to 31 December 2013 may be used for the completion of the work planned for 2013, as set out in Annex II to this document;
  5. Further requested the Interim Secretariat to allocate US$15,000 from the administrative budget for the period commencing on 1 January 2014 to be used for the completion of the work planned in 2014, as set out in Annex II to this document.

The Board:

  1. Decided that, in the short term, the Fund should commence its engagement with UNFCCC thematic bodies, with a view to reassessing this engagement as the Fund and UNFCCC thematic bodies evolve;
  2. Requested the Interim Secretariat to invite the Global Environment Facility Secretariat, the Adaptation Fund and the Climate Investment Funds to take up observer status with the Green Climate Fund;
  3. Further requested the Interim Secretariat to engage informally with other external bodies by exchanging information, as required.

The Board:

  1. Decided that the election of the Co‐Chairs be scheduled for the end of its third meeting in 2013;
  2. Further decided that the current Co‐Chairs will continue their functions for the duration of that meeting.

The Board:

  1. Decided that its third meeting in the year 2013 will take place in Paris, France;
  2. Authorized the Co‐Chairs, together with the Interim Secretariat and the country hosting the meeting, to change the dates of that meeting (4‐6 September 2013, with preparatory meetings on 3 September 2013) to later dates in late September or early October 2013, if possible, and inform the Board accordingly.

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.