Ninth meeting of the GCF Board (B.09)

Songdo, Incheon, Republic of Korea
24 - 26 March 2015

Documents
Type Title Ref # PDF
Co-Chairs note
Reflection Note by the Co-Chairs ahead of the Ninth Meeting of the Board of the Green Climate Fund Informal Note B.09-01
Meeting report
Report of the Ninth Meeting of the Board, 24–26 March 2015 GCF/B.09/24
Decision
Decisions of the Board – Ninth Meeting of the Board, 24 - 26 March 2015 GCF/B.09/23
Agenda
Agenda GCF/B.09/01/Rev.02
Action item
Work Plan 2015 GCF/B.09/02
Action item
Legal and Formal Arrangements with Accredited Entities GCF/B.09/03
Action item
Consideration of Accreditation Proposals GCF/B.09/04
Action item
Additional Modalities that Further Enhance Direct Access: Terms of Reference for a Pilot Phase GCF/B.09/05
Action item
Analysis of the Expected Role and Impact of the Green Climate Fund GCF/B.09/06
Action item
Further Development of the Initial Investment Framework: Sub-Criteria and Methodology GCF/B.09/07
Action item
Financial Terms and Conditions of the Fund’s Instruments GCF/B.09/08
Action item
Terms of Reference of the Technical Advisory Panel GCF/B.09/09
Action item
Gender Policy and Action Plan GCF/B.09/10
Action item
Private Sector Facility: Potential Approaches to Mobilizing Funding at Scale GCF/B.09/11/Rev.01
Action item
Private Sector Facility: Working with Local Private Entities, including Small and Medium-Sized Enterprises GCF/B.09/12
Action item
Initial Risk Management Framework: Survey of Methodologies to Define and Determine Risk Appetite GCF/B.09/13
Action item
Methodology for Decisions taken in between Meetings GCF/B.09/14
Action item
Decision-Making Procedure for the Board in the Absence of Consensus GCF/B.09/15
Action item
Policy on Ethics and Conflicts of Interest for the Board GCF/B.09/16
Action item
Administrative Guidelines on the Budget and Accounting System GCF/B.09/17
Action item
Administrative Guidelines on the Internal Control Framework and Internal Audit Standards GCF/B.09/18
Action item
Template for the Bilateral Agreement on Privileges and Immunities GCF/B.09/19
Action item
Initial Term Board Membership GCF/B.09/20
Action item
Date and Venue of the Tenth Meeting of the Board GCF/B.09/21
Action item
Establishment and Terms of Reference of the Appointment Committee GCF/B.09/22
Information
Annotations to the Provisional Agenda GCF/B.09/Inf.01
Information
Report on Activities of the Co-Chairs GCF/B.09/Inf.02
Information
Report on Activities of the Secretariat GCF/B.09/Inf.03
Information
Report on Activities of the Secretariat - Addendum GCF/B.09/Inf.03/Add.01
Information
Report from Committees and Panels GCF/B.09/Inf.04
Information
Status Report on the Operations Manual and Appraisal Toolkit GCF/B.09/Inf.06
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 eighth meeting
4. Report on activities of the Co-Chairs
5. 5. Report on activities of the Secretariat
6. Status of the Initial Resource Mobilization
7. Reports from committees and panels
8. Work plan for 2015
9. Analysis of the expected role and impact of the Green Climate Fund
10. Policy on ethics and conflicts of interest for the Board
11. Financial terms and conditions of the Fund’s instruments
12. Further development of the initial investment framework: Subcriteria and methodology
13. Initial risk management framework: Survey of methodologies to define and determine risk appetite
14. Consideration of accreditation proposals
15. Legal and formal arrangements with accredited entities
16. Private Sector Facility: Potential approaches to mobilizing funding at scale
17. Private Sector Facility: Working with local private entities, including small and medium-sized enterprises
18. Status report on the operations manual and the appraisal toolkit
19. Terms of reference of the independent Technical Advisory Panel
20. Decision-making procedures for the Board in the absence of consensus
21. Additional modalities that further enhance direct access: Terms of reference for a pilot phase
22. Template for the bilateral agreement on privileges and immunities
23. Gender policy and action plan
24. Administrative guidelines on the budget and accounting system
25. Administrative guidelines on the internal control framework and internal audit standards
26. Methodology for decisions taken in between meetings
27. Initial term of Board membership
28. Information note on the administrative guidelines on human resources
29. Date and venue of the tenth meeting of the Board
30. Other matters
31. Report of the meeting
32. Closure of the meeting

The Board, having reviewed document GCF/B.08/46 Report of the Eighth Meeting of the Board, 14-17 October 2014:

  1. Adopts the report of the eighth meeting of the Board contained in document GCF/B.08/46; and
  2. Agrees to publish the report on the Fund’s website (document GCF/B.08/46 Report of the Eighth Meeting of the Board, 14-17 October 2014).

The Board, having considered document GCF/B.09/06 Analysis of the Expected Role and Impact of the Green Climate Fund,

  1. Takes note of the findings of the analysis undertaken by the Secretariat, including illustrative investment opportunities in the Fund’s results areas; and
  2. Requests the Secretariat to monitor the portfolio, report to the Board, and recommend needed actions, in order to align the portfolio composition with the initial results management framework as contained in decision B.07/04 when the portfolio reaches US$ 2 billion, but no later than two years after the first funding decision.

The Board, having reviewed document GCF/B.09/16 Policy on Ethics and Conflicts of Interest for the Board:

  1. Adopts the policy on ethics and conflicts of interest for the Board of the Green Climate Fund set out in Annex I to this document, including the delegation of authority to the Ethics and Audit Committee contained therein; and
  2. Requests the Secretariat to draft a policy on ethics and conflicts of interest for the Executive Director, other Board appointed officials, active observers and external members of panels established by the Board for consideration by the Ethics and Audit Committee to

The Board, having reviewed document GCF/B.09/08 Financial Terms and Conditions of the Fund’s Instruments:

  1. Notes that the Fund will provide grants both with and without repayment contingency;
  2. Adopts the financial terms and conditions of grants and concessional loans as contained in Annex II to this document;
  3. Decides that use of grants with repayment contingency shall be limited to the private sector and that their terms and conditions shall be determined on a case-by-case basis;
  4. Also decides that the Fund will use differentiated terms for outgoing concessional loans to the public sector following the principles and factors set out in Annex III to decision B.05/07;
  5. Further decides the financial terms and conditions for non-grant instruments to the public sector, other than concessional loans, will be established on a case-by-case basis;
  6. Decides that all non-grant instruments extended to the private sector shall be determined on a case-by-case basis, taking into consideration Annex III to decision B.05/07 and section III in Annex XIV to decision B.07/06;
  7. Notes the need for the Fund, when making funding decisions, to consider the terms and conditions of the proposed financial instruments by the Accredited Entity to the recipient, as well as the financial terms and conditions of the financial instruments being requested from the Fund;
  8. Decides to review the financial terms and conditions of the Fund’s instruments on an annual basis;
  9. Requests the Secretariat to prepare and submit for the Board’s consideration at its tenth meeting a brief guideline on the application of the case-by-case provisions in the financial terms and conditions of the Fund’s instruments; and
  10. Decides to consider at the tenth meeting of the Board a proposal regarding the cases in which the high level concessional terms and the low level concessional terms in Annex II, table 2, for public sector proposal will apply.

Taking into account the need to provide information required by national designated authorities (NDAs) and focal points, institutions and organizations that may be considering projects and programmes for possible funding from the Fund, and to provide predictability to the process of how the proposals might be reviewed;

The Board, having reviewed document GCF/B.09/07 Further Development of the Initial InvestmentFramework: Sub-CriteriaandMethodology:

  1. Notes the Board’s agreement to keep under review the initial investment framework and to take action as necessary, in particular with respect to the criterion on needs of the recipient countries in the investment guidelines in decision B.07/06, paragraph (e);
  2. Adopts the initial activity-specific sub-criteria and indicative assessment factors contained in Annex III, which take into account the Fund’s initial investment framework, the Fund’s initial result areas and initial results management framework, and other relevant decisions, with the understanding that national and sector-wide sub-criteria can be used only at the discretion of the recipient countries;
  3. Decides to use indicative minimum benchmarks, in accordance with investment policies as decided by the Board, to ensure that projects and programmes demonstrate the maximum potential for a paradigm shift towards low-carbon and climate-resilient sustainable development;
  4. Requests the Secretariat to present for consideration by the Board at its thirteenth meeting indicative minimum benchmarks in order to:
    1. Encourage ambition; and
    2. Take into account the needs of those developing countries particularly vulnerable to the adverse effects of climate change, in particular the least developed countries (LDCs), small island developing States (SIDS), and African States, according to project size, mitigation/adaptation, and local and sector circumstances;
  5. Also requests the Secretariat and the independent Technical Advisory Panel (iTAP) in the application of the indicative minimum benchmarks to be flexible and take into account country circumstances and country ownership;
  6. Decides to use a scale of low/medium/high in order to assess the relative expected performance of a subset of projects and programmes based on the initial investment criteria. The Investment Committee will recommend to the Board to which subset of proposals this will apply. In the event that the Board is unable to agree an appropriate subset of proposals by its tenth meeting, the scaling pilot will automatically apply to all medium and large projects;
  7. Requests the Secretariat and iTAP in the application of the assessment scale to take into account the needs of those developing countries particularly vulnerable to the adverse effects of climate change, in particular LDCs, SIDS and African States; and
  8. Also requests the Secretariat in the development of the operations manual and appraisal toolkit to include guidance to accredited entities and NDAs on the application of the proposal approval process, including indicative minimum benchmarks and assessment scale. The inputs of NDAs will be taken into consideration in the development of the guidance.

The Board, having reviewed document GCF/B.09/13 Initial Risk Management Framework: Survey of Methodologies to Define and Determine Risk Appetite:

  1. Takes note of this document; and
  2. Requests the Secretariat, in consultation with the Risk Management Committee, to continue the work on determining the initial risk appetite of the Green Climate Fund, consistent with decision B.07/05.

The Board, having considered document GCF/B.09/04 Consideration of Accreditation Proposals:

  1. Takes note with appreciation of the in-depth assessment conducted by the Accreditation Panel contained within the relevant annexes for the following applicants:
    1. Applicant 001 (APL001) is the Centre de Suivi Ecologique, as contained in Annex IV;
    2. Applicant 002 (APL002) is the Peruvian Trust Fund for National Parks and Protected Areas, as contained in Annex V;
    3. Applicant 003 (APL003) is the Secretariat of the Pacific Regional Environment Programme, as contained in Annex VI;
    4. Applicant 004 (APL004) is Acumen Fund, Inc., as contained in Annex VII;
    5. Applicant 005 (APL005) is the Asian Development Bank, as contained in Annex VIII;
    6. Applicant 006 (APL006) is Kreditanstalt für Wiederaufbau, as contained in Annex IX; and
    7. Applicant 007 (APL007) is the United Nations Development Programme, as contained in Annex X;
  2. Accredits APL001, APL002, APL003, APL004, APL005, APL006 and APL007, pursuant to paragraph 45 of the Governing Instrument for the Green Climate Fund, and subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annexes for each of the applicant entities;
  3. Requests the Secretariat to inform the national designated authorities and focal points whenever an entity is accredited for operation in their country, and encourages the accredited entities to make contact with the national designated authority or focal point when they intend to operate outside the country(countries) that nominated them;
  4. Encourages the timely implementation of the accreditation framework and requests the Secretariat to pay special attention to the priority needs of developing countries, emphasizing readiness support to national and regional entities that request it, including those eligible for fast-tracking;
  5. Requests the Secretariat to invite national and regional entities that are operating at scale to apply for accreditation to the Green Climate Fund in coordination with their national designated authority or focal point, as appropriate, to ensure country ownership and promote direct access to funding as envisaged under the Governing Instrument for the Fund;
  6. Also requests the Secretariat to use best efforts to have applications ready for consideration and possible decision on accreditation by the Board at its tenth meeting;
  7. Further requests the Secretariat to aim to achieve a balance of diversity, including equitable representation of different geographical/regional areas, in the list of entities considered for accreditation at the tenth meeting of the Board, between direct access entities, including some operating at scale, private entities and international entities;
  8. Requests the Secretariat, in consultation with the Accreditation Panel, when implementing decision B08/03, paragraph (k), to provide recommendations for the fast-tracking of national, regional and private sector entities; and
  9. Also requests the Secretariat to publish the assessment methodology and the questions used in the assessment of accreditation applications.

The Board, having considered document GCF/B.09/03 Legal and Formal Arrangements with Accredited Entities:

  1. Endorses that the Fund shall enter into agreements or other arrangements with entities upon their accreditation by the Board taking into account the considerations set out in Annex XI;
  2. Authorizes, to the extent necessary, the Executive Director – or his/her designee – on behalf of the Fund to negotiate and agree on the terms and conditions of such agreements with accredited entities reflecting the scope of the accreditation, and to enter into such agreements.
  3. Requests the Secretariat to inform the Board regularly on progress made in the implementation of this decision;
  4. Also requests the Secretariat to include in the proposal on the monitoring and accountability framework to be prepared for consideration by the Board at its tenth meeting a proposal on the potential fixed term of the accreditation decisions.

The Board, having reviewed documents GCF/B.09/11/Rev.01 Private Sector Facility: Potential Approaches to Mobilizing Funding at Scale, and GCF/B.09/12 Private Sector Facility: Working with Local Private Entities, Including Small and Medium-Sized Enterprises:

  1. Takes note of the documents;

Aiming to accelerate the operationalization of the Private Sector Facility (PSF) consistent with the objectives of the Fund:

  1. Requests the Secretariat to take into consideration comments from the Board in its day to day work, including outreach, support for accreditation process and reviews of concepts;
  2. Also requests the Secretariat to aim to achieve a diverse balance in accredited private entities, including subnational, national, regional and international intermediaries that have a significant on-the-ground presence in developing countries. These entities would have to meet the Fund’s accreditation requirements and demonstrate a track record of operating in developing countries;
  3. Notes that the Secretariat may issue, after informing the relevant national designated authority, non-binding letters of intent as needed to accredited or potentially accredited entities. In the latter case, the letter shall contain a provision to the effect that the interactions will not influence the process of accreditation;
  4. Requests the Secretariat to produce a regular update report to the Board on PSF activities;
  5. Also requests the Private Sector Advisory Group (PSAG) to present to the Board at its tenth meeting additional recommendations regarding the establishment of a small and medium- sized enterprise (SME) programme as presented in document GCF/B.09/12;
  6. Further requests the PSAG to present to the Board at its tenth meeting additional recommendations for activities regarding mobilizing resources at scale based on document GCF/B.09/11/Rev.01, and comments from the Board, including modalities for issuing requests for proposals, consistent with the objectives of the Fund; and
  7. Requests the Secretariat to submit for the Board’s consideration at its eleventh meeting the request for proposals for the SME programme and an outline of activities that could be undertaken to mobilize resources at scale.

The Board, having reviewed document GCF/B.09/09 Terms of Reference of the Technical Advisory Panel:

  1. Approves the terms of reference of the independent Technical Advisory Panel (the Panel) as contained in Annex XII hereto; and
  2. Requests the Investment Committee, with support from the Secretariat and as soon as is possible, to nominate six experts as members of the Panel, for endorsement by the Board through a decision to be taken between meetings on a no objection basis.

The Board, having considered document GCF/B.09/10 Gender Policy and Action Plan :

  1. Adopts the gender policy proposed in Annex XIII, acknowledging the progress made in advancing gender balance and gender equality within the context of climate change policies and in line with individual country circumstances, when applying said policy;
  2. Also adopts the gender action plan as contained in Annex XIV;
  3. Requests the Secretariat to take the necessary measures in order to expedite the implementation of the policy and action plan; and
  4. Also requests the Secretariat’s Gender and Social Development Specialist to conduct a review of the gender policy and action plan, in consultation with the civil society organizations accredited with the Fund, and to submit an updated version of both by the twelfth meeting of the Board. Members of the Board are invited to submit their comments or additional proposals regarding the current policy and action plan by the tenth meeting of the Board.

The Board, having taken note of the information presented in document GCF/B.09/20 Initial Term of Board Membership:

  1. Takes note that the initial terms for members and alternate members of the Board expire on 23 August 2015;
  2. Affirms that the following principles should apply if successors to the current members and alternate members of the Board or to active observers, as the case may be, are not selected by 23 August 2015:
    1. Members and alternate members of the Board whose terms expire on 23 August 2015 shall continue their functions until their successors have been selected;
    2. Members and alternate members of the Board serving in the capacity of members of the Accreditation Committee, the Risk Management Committee, the Investment Committee and the Private Sector Advisory Group whose terms expire in 2015 shall continue their functions until their successors have been selected;
    3. Representatives from the active observers from accredited civil society organizations and private sector organizations whose terms expire in 2015 shall continue their functions until their successors have been selected; and
    4. Successors are expected to be selected not later than 31 December 2015.
  3. Requests the Secretariat to convey the principles set out in paragraph (b) above to all Parties to the United Nations Framework Convention on Climate Change;
  4. Decides to consider further the principles set out in paragraph (b) above at its tenth meeting.

The Board, having reviewed document GCF/B.09/21 Date and Venue of the Tenth Meeting of the Board:

  1. Decides that its second meeting in 2015 will take place in Songdo, Republic of Korea, from 6 to 9 July 2015; and
  2. Also decides that its third meeting in 2015 will take place from 27 to 29 October with dates and venue to be further confirmed.

The Board, having reviewed document B.BM-2015/02 Establishment and Terms of Reference of the Appointment Committee:

  1. Establishes the Appointment Committee as a committee of the Board in accordance with paragraphs 2 (g) and 30 of the Rules of Procedure of the Board;
  2. Adopts the terms of reference of the Appointment Committee, as set out in Annex XV to this document;
  3. Requests the Appointment Committee to present promptly upon its members being appointed, for consideration by the Board at its tenth meeting, the terms of reference for the Head of the Evaluation Unit, the Head of the Integrity Unit and the Head of the Redress Mechanism, the criteria for their selection, as well as details of the selection process to be conducted;
  4. Agrees that an open, merit-based selection process should begin no later than the second quarter of 2015;
  5. Requests the Secretariat to convene the first meeting of the Appointment Committee via videoconference as soon as practicable after the appointment of its members; and
  6. Decides to take up at its eleventh meeting the establishment of a standing Board committee to assist the Board in the appointments, performance reviews, salary decisions and accountability of the Head of the Evaluation Unit, the Head of the Integrity Unit and the Head of the Redress Mechanism as well as the Executive Director.