Twenty-seventh meeting of the GCF Board (B.27)

The Board, having considered document GCF/B.27/02/Rev.03 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   1. Funding proposal 141 titled “Improving Adaptive Capacity and Risk Management of Rural communities in Mongolia”, by the United Nations Development Programme, as contained in document GCF/B.27/02/Add.01 and Add.24/Rev.01;
   2. Funding proposal 142 titled “Argentina REDD-plus RBP for results period 2014- 2016”, by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.27/02/Add.02 and Add.24/Rev.01;
   3. Funding proposal 143 titled “Planting Climate Resilience in Rural Communities of the Northeast (PCRP)", by the International Fund for Agricultural Development, as contained in document GCF/B.27/02/Add.03 and Add.24/Rev.01;
   4. Funding proposal 144 titled “Costa Rica REDD-plus Results-Based Payments for 2014 and 2015", by the United Nations Development Programme, as contained in document GCF/B.27/02/Add.04 and Add.24/Rev.01;
   5. Funding proposal 145 titled “RELIVE – REsilient LIVElihoods of vulnerable smallholder farmers in the Mayan landscapes and the Dry Corridor of Guatemala”, by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.27/02/Add.05 and Add.24/Rev.01;
   6. Funding proposal 146 titled “Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres”, by the Central American Bank for Economic Integration, as contained in document GCF/B.27/02/Add.06/Rev.01 and Add.24/Rev.01;
   7. Funding proposal 147 titled “Enhancing Climate Information and Knowledge Services for resilience in 5 island countries of the Pacific Ocean”, by the United Nations Environment Programme, as contained in document GCF/B.27/02/Add.07 and Add.24/Rev.01;
   8. Funding proposal 148 titled “Participation in Energy Access Relief Facility ("EARF")”, by Acumen Fund, Inc., as contained in document GCF/B.27/02/Add.17;
   9. Funding proposal 149 titled “Green Climate Financing Facility for Local Financial Institutions in Latin-America”, by the Corporación Andina de Fomento, as contained in document GCF/B.27/02/Add.18;
   10. Funding proposal 150 titled “Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh”, by the Infrastructure Development Company Limited, as contained in document GCF/B.27/02/Add.19/Rev.01;
   11. Funding proposal 151 titled “Technical Assistance (TA) Facility for the Global Subnational Climate Fund”, by the International Union for Conservation of Nature, as contained in document GCF/B.27/02/Add.20, and funding proposal 152 titled “Global Subnational Climate Fund (SnCF Global) - Equity”, by Pegasus Capital Advisors, as contained in document GCF/B.27/02/Add.21;
   12. Funding proposal 153 titled “Mongolian Green Finance Corporation”, by XacBank LLC, as contained in document GCF/B.27/02/Add.22;
   13. Simplified approval process (SAP) funding proposal 017 titled “Climate proofing food production investments in Imbo and Moso basins in the Republic of Burundi”, by the International Fund for Agricultural Development, as contained in document GCF/B.27/02/Add.14 and Add.24/Rev.01;
   14. Simplified approval process (SAP) funding proposal 018 titled “Enhancing Climate Information Systems for Resilient Development in Liberia (Liberia CIS)”, by the African Development Bank, as contained in document GCF/B.27/02/Add.15 and 24/Rev.01; and
   15. Simplified approval process (SAP) funding proposal 019 titled “Gums for Adaptation and Mitigation in Sudan (GAMS): Enhancing adaptive capacity of local communities and restoring carbon sink potential of the Gum Arabic belt, expanding Africa’s Great Green Wall”, by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.27/02/Add.16 and 24/Rev.01
2. Approves funding proposal 141 for the amount of USD 23,101,276, submitted by the United Nations Development Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
3. Also approves funding proposal 142 for the amount of USD 82,000,000, submitted by the Food and Agriculture Organization of the United Nations, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
4. Further approves funding proposal 143 for the amount of USD 99,500,000, submitted by the International Fund for Agricultural Development, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
5.  Approves funding proposal 144 for the amount of USD 54,119,143, submitted by the United Nations Development Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
6. Also approves funding proposal 145 for the amount of USD 29,837,169, submitted by the Food and Agriculture Organization of the United Nations, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
7.  Further approves, pursuant to a vote in which 22 of the Board members present voted in favour and 1 of the Board members present voted against, and in respect of which 1 of the Board members present abstained from the vote, funding proposal 146 for the amount of USD 64,094,029, submitted by the Central American Bank for Economic Integration, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01 
8.  Approves funding proposal 147 for the amount of USD 47,403,174, submitted by the United Nations Environment Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
9. Also approves funding proposal 148 for the amount of USD 30,000,000, submitted by Acumen Fund, Inc., subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.17;
10. Further approves funding proposal 149 for the amount of USD 100,000,000, submitted by the Corporación Andina de Fomento, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.18;
11. Approves funding proposal 150 for the amount of USD 256,480,000, submitted by Infrastructure Development Company Limited, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.19/Rev.01;
12. Also approves funding proposal 151 for the amount of USD 18,500,000, submitted by the International Union for Conservation of Nature, and funding proposal 152 for the amount of USD 150,000,000, submitted by Pegasus Capital Advisors, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.20 and Add.21;
13. Further approves funding proposal 153 for the amount of USD 26,654,103, submitted by XacBank LLC, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.22;
14. Approves, pursuant to a vote in which 22 of the Board members present voted in favour and 1 of the Board members present voted against, and in respect of which 1 of the Board members present abstained from the vote, simplified approval process (SAP) funding proposal 017 for the amount of USD 9,994,500, submitted by the International Fund for Agricultural Development, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
15.  Also approves simplified approval process (SAP) funding proposal 018 for the amount of USD 10,000,000, submitted by the African Development Bank, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
16. Further approves, pursuant to a vote in which 23 of the Board members present voted in favour and 1 of the Board members present voted against, and in respect of which none of the Board members present abstained from the vote, simplified approval process (SAP) funding proposal 019 for the amount of USD 9,975,000, submitted by the Food and Agriculture Organization of the United Nations, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.27/02/Add.24/Rev.01;
17. Reaffirms that pursuant to annex IV to decision B.17/09, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition approved by the Board in this decision and in the decision accrediting the relevant accredited entity; and 
18. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the policy on fees and the general principles and indicative list of eligible costs covered under GCF fees and project management costs adopted by the Board pursuant to decision B.19/09.

The Board, having considered the limited distribution document GCF/B.27/05 titled “Status of approved funding proposals: Extension of deadline in respect of FP027 (Universal Green Energy Access Programme)”:

Decides to extend the deadline until 13 March 2021 for the submission by the accredited entity of a certificate or legal opinion, in form and substance satisfactory to the Secretariat, confirming that the accredited entity has obtained all final internal approvals needed by it and has the capacity and authority to implement the proposed programme for the following approved funding proposal:

1. FP027, titled “Universal Green Energy Access Programme”

The Board, having considered limited distribution document GCF/B.27/20 titled “Status of approved funding proposals: extension of deadline in respect of FP116 (Carbon Sequestration through Climate Investment in Forests and Rangelands in Kyrgyz Republic (CS-FOR)):

Decides to extend the deadline until 7 May 2021 for the execution of the funded activity agreement, in a form and substance satisfactory to the Secretariat, for the following approved funding proposal:

1. FP116, titled “Carbon Sequestration through Climate Investment in Forests and Rangelands in Kyrgyz Republic (CS-FOR)”

    

The Board, having reviewed the limited distribution document GCF/B.27/07 titled “Status of approved funding proposals: adding new countries to FP099 (Climate Investor One (FMO))”:

1. Takes note of the seven new no-objection letters for FP099 submitted by the national designated authorities for the relevant countries;
2. Approves the inclusion of Ecuador, Ethiopia, Mauritius, the Philippines, Senegal, Tunisia and Zambia as GCF mandate countries for FP099; and
3. Authorizes the Secretariat to take such steps as might be necessary pursuant to the funded activity agreement for FP099 to give effect to this decision.

The Board, having considered document GCF/B.27/03 titled “Consideration of accreditation proposals”:

1. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants:
   1. Applicant 102 (APL102) is Kemitraan bagi Pembaruan Tata Pemerintahan (Partnership for Governance Reform) (Kemitraan), based in Indonesia, as contained in annex II;
   2. Applicant 103 (APL103) is the National Trust for Nature Conservation (NTNC), based in Nepal, as contained in annex III;
   3. Applicant 104 (APL104) is KCB Bank Kenya Limited (KCB), based in Kenya, as contained in annex IV; and
   4. Applicant 105 (APL105) is Camco Management Limited (Camco), based in the United Kingdom of Great Britain and Northern Ireland, as contained in annex V; and

2. Approves the accreditation of applicants APL102, APL103, APL104 and APL105, pursuant to paragraph 45 of the Governing Instrument for the GCF, subject to, and in accordance with, the assessments by the Accreditation Panel contained in the relevant annexes for each of the applicants, and subject to the completion of Stage III of the accreditation by having an effective accreditation master agreement, in accordance with decision B.23/11

The Board, having considered document GCF/B.27/21 titled “Updated Strategic Plan for the Green Climate Fund: 2020-2023”:

1. Endorses the updated Strategic Plan for the Green Climate Fund: 2020-2023, which is a living document, as set out in annex VI as the updated GCF Strategic Plan to guide the Board in addressing policy gaps and programming the GCF resources of the first replenishment period between 2020 and 2023 and to invest the GCF resources in paradigm-shifting climate actions in a country-driven manner;
2. Recalls the outcomes of the initial resource mobilization period;
3. Requests the Secretariat, under the Co-Chairs’ guidance, to update the Board’s workplan for 2020-2023 to reflect the updated Strategic Plan’s objectives and priorities, and to present it to the Board at the first meeting of 2021;
4. Reaffirms that the implementation of the updated Strategic Plan will be guided by the Governing Instrument for the GCF, including the objectives and guiding principles laid out therein;
5. Notes that the updated Strategic Plan will guide the Board’s deliberations on issues mandated in its four-year workplan, and to support developing countries in translating their nationally determined contributions, adaptation communications, national adaptation plans and long-term national strategies into investment strategies and project pipelines informed by the goals in the Paris Agreement, without prejudice to the outcomes of the Board deliberations;
6. Recalls decision B.12/20, including paragraph (h), and decision B.13/10, paragraph (e), and confirms that GCF, as an operating entity of the Financial Mechanism of the Convention, serves the Paris Agreement;
7. Requests the committees, panels and groups of the Board to include the relevant actions outlined in the updated Strategic Plan in their respective deliberations and work programmes, as appropriate, throughout the first replenishment period;
8. Agrees that the resource allocation parameters for the GCF first replenishment programming period, for mitigation, adaptation and the private sector, will continue to be based on decision B.05/05;
9. Further agrees that the GCF first replenishment programming period will strive to achieve greater impact for developing countries compared with the initial resource mobilization period, while strengthening country ownership and capacity to identify, design and implement projects and programmes, and in this regard agrees the following parameters and guidelines for the allocation of resources during the GCF first replenishment period
   1. Maintaining the 50:50 balance of adaptation and mitigation funding over time while seeking to deliver portfolio-level mitigation and adaptation outcomes that exceed average initial resource mobilization outcomes;
   2. Maintaining a minimum allocation floor of fifty per cent of adaptation funding, to be provided to developing countries that are particularly vulnerable to the adverse effects of climate change, including small island developing States, least developed countries and African States, taking into account their urgent and immediate needs, while aiming to build on initial resource mobilization outcomes. The Board will aim for appropriate geographical balance;
   3. Supporting developing countries mitigation activities that contribute to respond to the urgency of action to hold the increase in global average temperature to well below 2°C and pursue efforts to limit it to 1.5°C;
   4. Significantly increase funding channelled through direct access entities relative to the initial resource mobilization;
   5. Maximize engagement with the private sector, including micro, small and mediumsized enterprises, ensuring the allocation to the Private Sector Facility exceeds 20 per cent; and
   6. Significantly increase mobilized private sector finance at the portfolio level relative to the initial resource mobilization;
10. Reaffirms that allocation parameters should be determined in grant equivalents;
11. Requests the Secretariat to update the allocation parameters and portfolio targets under the GCF initial investment framework to reflect GCF first replenishment allocation parameters and portfolio targets as set out in paragraph (i) of this decision, in line with decision B.07/06, paragraph (e);
12.  Aims to programme 40 per cent of available resources by the midpoint of the GCF first replenishment and 95 per cent by end 2023;
13. Requests the Secretariat to report on progress on the updated Strategic Plan at the first Board meeting of each year from 2021;
14. Encourages the Secretariat to enhance efforts to improve speed, predictability, access, impact, quality, efficiency, effectiveness and transparency;
15.  Also encourages contributing countries to confirm their pledges to GCF in the form of fully executed contribution agreements/arrangements as soon as possible; and
16. Decides to review the GCF Strategic Plan ahead of each replenishment process with a view to revising the strategic vision, if and as needed, and to update the strategic objectives and priorities for the coming replenishment cycle, taking into account evolving priorities, including guidance from the Conference of the Parties, the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement, and relevant reports from the Independent Evaluation Unit.

The Board, having considered document GCF/B.27/04 titled “2021 work programme of the Secretariat and annual administrative budget of the GCF Secretariat, Board and Trustee”:

1. Recognizes that the work programme will help to guide the activities of the Secretariat during 2021;
2. Approves the 2021 work programme and the goals and suggested priorities set out therein, in accordance with paragraph 23(e) of the Governing Instrument for the GCF;
3. Also approves the administrative budget for the Secretariat found in table 6 in annex II of document GCF/B.27/04 for the period 1 January 2021 to 31 December 2021 in the amount of USD 75,018,024, which includes 26,500,295 in new funding, as well as the USD 48,517,729 for 2021 staff salaries and emoluments that was approved by the Board in decision B.21/09;
4. Recognizes that the new funding of USD 26,500,295 includes a contingency budget of USD 1,500,545
5. Requests the Executive Director to consult with the Budget Committee on the allocation of the contingency budget;
6. Approves USD 55,889,131 for projected staff salaries and emoluments for 2023;
7. Also approves a budget for the Board in the amount of USD 4,756,436 as found in table 5 in annex II of document GCF/B.27/04; 
8. Further approves a budget for the Trustee in the amount of USD 3,756,000 as included in table 19 in annex II of document GCF/B.27/04; and
9.  Requests the Secretariat to present a comprehensive financial plan to manage the commitment authority for the entire GCF first replenishment programming period for consideration by the Board at its twenty-ninth meeting

The Board, having considered document GCF/B.27/11 titled “Independent Evaluation Unit 2021 Work Plan and Budget and Update of its Three-year Objectives and Work Plan”:

1. Approves the work plan and budget of the Independent Evaluation Unit for 2021 for an amount of USD 5,912,573 as contained in annex VII to this document;
2. Agrees to further consider the matters, including written comments in accordance with paragraph 23 of Rules of Procedure of the Board, raised by Board members in the consideration of this matter;
3. Urges the Independent Evaluation Unit, in accordance with decision B.24/15, to present the Evaluation Policy and the detailed procedures and guidelines for the effective operation of the Independent Evaluation Unit, for consideration and approval by the Board at its twenty-eighth meeting;
4. Requests the Budget Committee to review the budget execution during 2021 and acknowledges that the Independent Evaluation Unit may present to the Board for consideration at its twenty-ninth meeting an additional budgetary request to execute its workplan for 2021; and
5. Further requests the Independent Evaluation Unit, in consultation with the Budget Committee, to prepare a multi-year budget and schedule for the second performance review of the GCF for consideration by the Board at its twenty-eighth meeting

    

The Board, having considered document GCF/B.27/08 titled “Work Programme and Budget of the Independent Integrity Unit for 2021”:

1. Approves the Work Programme and Budget of the Independent Integrity Unit for 2021 as contained in annexes VIII and IX to this document, respectively (total budgeted amount of USD 2,796,393); and
2. Requests the Budget Committee and the Ethics and Audit Committee to review the budget execution during 2021 and acknowledges that the Independent Integrity Unit may present to the Board, for its consideration at its twenty-ninth meeting, an additional budgetary request to execute its Work Programme for 2021.

    

The Board, having considered document GCF/B.27/09 titled “Independent Redress Mechanism Work Plan and Budget for 2021”:

Approves the work plan and budget of the Independent Redress Mechanism for 2021 as contained in annex II and III, respectively, to document GCF/B.27/09 (total budgeted amount of USD 1,395,471).

The Board, having considered limited distribution document GCF/B.27/15 titled “Appointment of the interim Head of the Independent Evaluation Unit”:

1. Takes note of the resignation of Ms. Jyotsna Puri as Head of the Independent Evaluation Unit effective from 8 November 2020;
2. Appoints Mr. Andreas Reumann as Head of the Independent Evaluation Unit ad interim effective from the date on which the relevant contractual arrangements have been concluded;
3. Authorizes the Co-Chairs to agree, on behalf of the Board, on arrangements, as appropriate, with the Head of the Independent Evaluation Unit ad interim, including but not limited to:
   1. A performance agreement that will specify the outcome and performance expected for the duration of role;
4. Decides that the Head of the Independent Evaluation Unit ad interim shall assume the functions, and have the mandate, of the Head of the Independent Evaluation Unit as provided for in relevant Board decisions; and
5. Further decides that the Head of the Independent Evaluation Unit ad interim will not be precluded from applying for the Head of the Independent Evaluation Unit position.