Eighth meeting of the GCF Board (B.08)

Bridgetown, Barbados
14 - 17 October 2014

Documents
Type Title Ref # PDF
Meeting report
Report of the Eighth Meeting of The Board, 14-17 October 2014 GCF/B.08/46
Decision
Decisions Approved between Seventh and Eighth Meeting GCF/B.08/36
Decision
Decisions of the Board - Eighth Meeting of the Board, 14-17 October 2014 GCF/B.08/45
Agenda
Agenda GCF/B.08/01/Rev.01
Action item
Guidelines for the Operationalization of the Fit-for-purpose Accreditation Approach GCF/B.08/02
Action item
Assessment of Institutions Accredited by Other Relevant Funds and Their Potential for Fast-track Accreditation GCF/B.08/03
Action item
Policy on Fees for Accreditation GCF/B.08/04
Action item
Relevant International Private Sector Best-Practice Fiduciary Principles and Standards and Environmental and Social Safeguards GCF/B.08/05
Action item
Application Documents for Submissions of Applications for Accreditation GCF/B.08/06
Action item
Further Development of the Initial Results Management Framework GCF/B.08/07
Action item
Initial Logic Model and Performance Measurement Framework for REDD+ Results-based Payments GCF/B.08/08/Rev.01
Action item
Additional Modelities That Further Enhance Direct Access, Including Through Funding Entities GCF/B.08/09
Action item
Revised Programme of Work on Readiness and Preparatory Support GCF/B.08/10
Action item
Financial Terms and Conditions of Grants and Concessional Loans GCF/B.08/11
Action item
Use of Other Financial Instrument GCF/B.08/12
Action item
Potential Approaches Mobilizing Funding at Scale GCF/B.08/13
Action item
Working with Local Private Entities, Including Small and Medium-Sized Enterprises GCF/B.08/14
Information
Outcome of the IRM GCF/B.08/15
Action item
Policies for Contributions GCF/B.08/16
Action item
Decision-Making Procedures for the Board in the Absence of Consensus GCF/B.08/17
Action item
Legal Arrangements for Contributions GCF/B.08/18
Action item
Gender Policy and Action Plan GCF/B.08/19
Action item
Further Development of the Initial Investment Framework GCF/B.08/20
Action item
Initial Approval Process - Draft Terms of Reference of the Independent Technical Advisory Panel GCF/B.08/21
Action item
Simplified Processes for the Approval of Proposals for Certain Activities, in Particular Small-scale Activities GCF/B.08/22
Action item
Legal and Formal Arrangements with Intermediaries and Implementing Entities GCF/B.08/23
Action item
Administrative Budget of the Fund for 2015 GCF/B.08/24
Action item
Terms of Reference for Appointment Committee GCF/B.08/25
Action item
Commecement Annual Reporting External Audit Process GCF/B.08/27
Action item
Work Plan of the Board for 2015 GCF/B.08/28
Action item
Methodology for Decisions between Meetings GCF/B.08/29
Action item
Travel Policy GCF/B.08/30
Action item
Administrative Guidelines on Procurement GCF/B.08/31
Action item
Initial Risk Management Framework: Survey of Methodologies to Define and Determine Risk Appetite GCF/B.08/32
Action item
Trustee Arrangements, Including the Review of the Interim Trustee and the Initiation of a Process to Select the Trustee of the Fund GCF/B.08/33
Action item
Trustee Arrangements, Including the Review of the Interim Trustee and the Initiation of a Process to Select the Trustee of the Fund - Addendum GCF/B.08/33/Add.01
Action item
Relationships with Relevant UNFCCC Thematic Bodies GCF/B.08/34
Action item
Draft Report to the Conference of the Parties to the UNFCCC GCF/B.08/35
Action item
Options for an Institutional Linkage between the United Nations and the Fund GCF/B.08/39
Information
Report on Activities of the Secretariat GCF/B.08/Inf.01
Information
Progress Report on Accreditation GCF/B.08/Inf.02
Information
Report on Status of Resources GCF/B.08/Inf.03
Information
Status of Execution of the Administrative Budget GCF/B.08/Inf.04
Information
Annual Update on the Structure and Staffing of the Secretariat GCF/B.08/Inf.05
Information
Annotations to the Provisional Agenda GCF/B.08/Inf.06
Information
Report of the Investment Committee to the Board GCF/B.08/Inf.07
Information
Recommendations from the Private Sector Advisory Group: Private Sector Facility: Mobilizing Funds at Scale GCF/B.08/37
Information
Recommendations from the Private Sector Advisory Group: Private Sector Facility: Instruments to Mobilize Private Sector Resources GCF/B.08/38
Information
Recommendations from the Private Sector Advisory Group: Private Sector Facility: Engaging Local Private Sector Actors, including Small-and Medium Sized Enterprises GCF/B.08/40
Information
Private Sector Advisory Group: Initial Recommendations on the Development of the Fund’s Risk Appetite GCF/B.08/41
Information
Report of the Private Sector Advisory Group to the Board of the Green Climate Fund GCF/B.08/43
Meeting agenda
Item Title
1. Opening of the meeting
2. Adoption of the agenda and organization of work
3. Adoption of the report of the seventh meeting
4. Reports on activities
4.a. Report on activities of the Co-Chairs
4.b. Report on activities of the Secretariat
5. Reports from committees, panels and groups
6. 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
6.a. Guidelines for the operationalization of the fit-for-purpose accreditation approach
6.b. Assessment, including gap analysis, of institutions accredited by other relevant funds
6.c. Policy on fees for accreditation
6.d. Identification of relevant potential international private sector best-practice fiduciary principles and standards and environmental and social safeguards
6.e. Application documents for submissions of applications for accreditation
7. Initial results management framework of the Fund
7.a. Mitigation and adaptation performance measurement frameworks of the Fund
7.b. Logic model and performance framework for ex-post REDD+ results-based payments
7.c. Additional result areas and indicators for adaptation activities
7.d. Role and expected impacts of the Fund in initial result areas
7.e. Board flagship projects cutting across adaptation result areas
7.f. Indicators for country-driven policies
7.g. Monitoring and evaluation policy
8. Additional modalities that further enhance direct access, including through funding entities
9. Country ownership
9.a. No-objection procedure
9.b. Best practices for the establishment and composition of National Designated Authorities and focal points
9.c. Best-practice options for country coordination and multi-stakeholder engagement
10. Revised programme of work on readiness and preparatory support
11. Financial terms and conditions of grants and concessional loans
12. Use of other financial instruments
13. Private Sector Facility
13.a. Potential approaches to mobilizing funding at scale
13.b. Working with local private entities, including small and medium-sized enterprises
14. Initial resource mobilization
14.a. Outcome of the first and second meeting of interested contributors to the Initial Resource Mobilization Process of the Green Climate Fund
14.b. Policies for contributions:
14.b.i. Initial Resource Mobilization pledging process
14.b.ii. Initial Resource Mobilization period
14.b.iii. Date of effectiveness
14.b.iv. Trigger for the formal replenishment process
14.b.v. Decision making
14.c. Legal arrangements for contributions
15. Gender policy and action plan
16. Fund’s initial investment framework
17. Initial approval process: Draft terms of reference of the independent technical advisory panel
18. Simplified processes for the approval of proposals for certain activities, in particular small-scale activities
19. Legal and formal arrangements with intermediaries and implementing entities, including policies on fees and payments
20. Status of resources and the execution of the administrative budget:
20.a. Status of resources
20.b. Status of execution of the administrative budget
21. Budget and staffing:
21.a. 2015 administrative budget
21.b. Annual update on the structure and staffing of the Secretariat
22. Terms of reference of the Appointment Committee of the Board
23. Administrative guidelines on human resources
24. Commencement of annual reporting and the external auditing process
25. Work plan of the Board for 2015, including outstanding issues from the 2014 work plan
26. Methodology for decisions taken between meetings, including decisions approved between the seventh and eighth Board meetings
27. Travel policy
28. Administrative guidelines on procurement
29. Fund’s initial risk management framework: Survey of methodologies to define and determine risk appetite
30. Trustee arrangements, including the review of the Interim Trustee and the initiation of a process to select the Trustee of the Fund
31. Relationships with relevant United Nations Framework Convention on Climate Change thematic bodies, such as the Adaptation Committee and the Technology Executive Committee, as well as other climate finance entities and external bodies, including corporate and foundational partnerships
32. Report for the Conference of the Parties, including the response to the guidance provided by the Conference of the Parties at its nineteenth session, and the institutional linkage between the United Nations and the Green Climate Fund
33. Date and venue of the ninth Board meeting
34. Election of Co-Chairs
35. Other matters
36. Closure of the meeting

The Board:

  1. Adopts the report of the seventh meeting contained in document GCF/B.07/Drf.02; and
  2. Agrees to publish it on the Fund’s website (document GCF/B.07/12 Report of the Seventh Meeting of the Board, 18-21 May 2014).

The Board, having considered document GCF/B.08/02 Guidelines for the Operationalization of the Fit-for-purpose Accreditation Approach and recalling decision B.07/02, paragraph (r):

  1. Recalls that all entities, including international, regional, national and subnational entities, can apply for accreditation to the Green Climate Fund;
  2. Stresses the fundamental importance for the accreditation process to contribute to building the capacities of entities in developing countries;
  3. Approves the guidelines for the operationalization of the fit-for-purpose accreditation approach set out in Annex I;
  4. 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;
  5. Requests the Secretariat to develop a monitoring and accountability framework, which will include policies on the suspension and cancellation of accreditation to complement the operational guidelines approved in Annex I to document GCF/B.07/11 and the Fund’s other relevant accountability mechanisms, for consideration by the Board at its ninth meeting; and
  6. Requests the Secretariat to prepare a document on additional guidelines of the Fund with regard to non-multilateral international entities, in particular on their role with respect to the Fund’s objectives and modalities, and following a country-driven approach, for consideration by the Board at its ninth meeting.

The Board, having reviewed document GCF/B.08/03 Assessment of Institutions Accredited by Other Relevant Funds and Their Potential for Fast-track Accreditation:

  1. Recalls that all entities, including subnational, national, regional and international entities, can apply for accreditation to the Green Climate Fund;
  2. Takes note of the assessment of institutions accredited by other relevant funds and their potential for eligibility to apply under the fast-track accreditation process presented in Annex II to this document;
  3. Decides that the purpose of the fast-track accreditation is to expedite the accreditation of entities, including subnational, national, regional, and international entities, that have already been accredited by a relevant fund or institution that has an accreditation process, and whose fiduciary and environmental and social standards are found to be comparable to the Fund’s fiduciary standards and environmental and social safeguards (ESS);
  4. Decides that in the fast-track accreditation process, the Accreditation Panel shall:
    1. Identify, with the support of the Secretariat, the extent to which the fiduciary and environmental and social standards of the relevant fund or institution are comparable to those of the Fund and where gaps may exist;
    2. Rely on the assessment of the relevant fund or institution with respect to the fiduciary and environmental and social standards that are comparable to those of the Fund when accrediting an entity to the Fund;
    3. Assess whether the applicant adequately meets the Fund’s fiduciary standards and ESS where there are gaps, consistent with the application of the fit-for-purpose approach, and
    4. Recommend to the Board whether an applicant entity shall be granted accreditation and indicate conditions, if any;
  5. Decides that entities accredited by the GEF up to the time of this Board decision and in full compliance with the GEF’s Minimum Fiduciary Standards and Minimum Standards on Environmental and Social Safeguards (ESS) are eligible to apply under the fast-track accreditation process for the Fund’s basic fiduciary standards, the specialized fiduciary standard for project management, and ESS. The assessment for accreditation will focus on the following gaps (see paragraphs (e) (i) and (ii) below) insofar as they are relevant to the entity’s intended activities, which are to be addressed by the entity. The entity will be assigned a risk category for funding proposals for projects and activities commensurate with its track record if and when the entity is approved for accreditation:
    1. Fiduciary gap: Anti-money laundering and anti-terrorist financing (basic fiduciary criteria for the purpose of transparency and accountability) (see Annex III); and
    2. ESS gap: Have the capacity to assess and manage relevant elements of Performance Standards 1-4 and 6 environmental and social risks and impacts, per Table 1 in Annex IV, in line with the Fund's ESS through an ESMS (see Annex IV);
  6. Decides that entities accredited by the Adaptation Fund (AF) up to the time of this Board decision and in full compliance with the AF’s fiduciary standards are eligible to apply under the fast-track accreditation process for the Fund’s basic fiduciary standards, the specialized fiduciary standard for project management, and ESS. The assessment for accreditation will focus on the following gaps (see paragraphs (f) (i)–(iv) below) insofar as they are relevant to the entity’s intended activities, which are to be addressed by the entity. The entity will be assigned a risk category for funding proposals for projects and activities commensurate with its track record if and when the entity is approved for accreditation:
    1. Fiduciary gap: Have publicly available terms of reference that outline the purpose, authority and accountability for the investigation function (basic fiduciary criteria for the purpose of transparency and accountability and scope of investigation) (see Annex III);
    2. Fiduciary gap: Ensure functional independence by having the investigations function headed by an officer who reports to a level of the organization that allows the investigation function to fulfil its responsibilities objectively (basic fiduciary criteria for the purpose of transparency and accountability and scope of investigation) (see Annex III);
    3. Fiduciary gap: Publish guidelines for processing cases, including standardized procedures for handling complaints received by the function and managing cases before, during and after the investigation process (basic fiduciary criteria for the purpose of transparency and accountability and scope of investigation) (see Annex III); and
    4. ESS gap: Have the capacity to assess and manage relevant Performance Standards 1-8 environmental and social risks and impacts in line with the Fund's ESS through an ESMS (see Annex IV);
  7. Decides that entities accredited by the Directorate-General for Development and Cooperation – EuropeAid of the European Commission (EU DEVCO) up to the time of this Board decision and in full compliance with EU DEVCO’s fiduciary standards are eligible to apply under the fast-track accreditation process for the Fund’s basic fiduciary standards, the specialized fiduciary standard for grant award and/or funding allocation mechanisms, and ESS. The assessment for accreditation will focus on the following gaps (see paragraphs. (g) (i) and (ii) below), insofar as they are relevant to the entity’s intended activities, which are to be addressed by the entity. The entity will be assigned a risk category for funding proposals for projects and activities commensurate with its track record if and when the entity is approved for accreditation:
    1. Fiduciary gap: anti-money laundering and anti-terrorist financing (basic fiduciary criteria for the purpose of transparency and accountability) (see Annex III); and
    2. ESS gap: Have the capacity to assess and manage relevant Performance Standards 1-8 environmental and social risks and impacts in line with the Fund's ESS through an ESMS (see Annex IV).
  8. Decides that any entity accredited by funds referred to in paragraphs (e), (f) and (g) must address any remaining gaps identified in relation to those funds. The entity will be assigned a risk category for funding proposals for projects and activities commensurate with its track record if and when the entity is approved for accreditation;
  9. Recommends that those entities referred to in paragraphs (e), (f) and (g) to apply for fast- track accreditation once the application process is open;
  10. Recommends that international entities who apply for fast-track propose, as an important additional consideration of their fast track accreditation application, how they intend to strengthen capacities of or otherwise support potential subnational, national and regional implementing entities and intermediaries to meet, at the earliest opportunity, the accreditation requirements of the Fund in order to enhance country ownership; and
  11. Requests the Secretariat, in consultation with the Accreditation Panel, to identify other entities applying fiduciary and environmental and social principles or standards found to be comparable with the Fund’s fiduciary standards and ESS, and to propose to the Board that the eligibility to apply under the fast-track accreditation process be extended to those entities.

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):

  1. 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;
  2. 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;
  3. 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);
  4. Decides that the Board will aim to start taking decisions on programme and project proposals no later than its third meeting 2015;
  5. 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
  6. 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

  1. Recalls decision B.05/14 paragraph (d) (iii);
  2. 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;
  3. Also decides that readiness commitments to individual developing member countries will be capped at US$ 1 million per calendar year;
  4. Affirms that readiness requests will be assessed to ensure complementarity with existing readiness activities, if any;
  5. 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

  1. 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;
  2. Decides that progress in meeting these objectives will be subject to an independent evaluation after two years to assess lessons learned;
  3. 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;
  4. 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;
  5. 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;
  6. 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;
  7. 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

  1. 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;
  2. 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;
  3. 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;
  4. 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;
  5. 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
  6. 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

  1. 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.