Thirty-ninth meeting of the GCF Board (B.39)

The Board, having reviewed document GCF/B.39/04 titled “Appointment of External Auditors for the Green Climate Fund for the years 2024 through 2026”:

Decides to appoint Deloitte & Touche LLP as the External Auditor of the Fund to conduct the audit of the financial statements for the years 2024 through 2026.

The Board:

1. Recalls decision B.36/16, which requested the Secretariat to develop, under the guidance of the Investment Committee, a framework that specifically addresses the scope and criteria for local currency financing pilot projects, with particular attention to, inter alia, additionality, direct access entity eligibility, implications to the GCF balance sheet and commitment authority, and cost of all-in concessionality for each project/programme utilizing local currency financing;
2. Takes note of the progress made by the Investment Committee and the Secretariat in developing a framework addressing the scope and criteria for local currency financing, particularly the focus of the Investment Committee on understanding the GCF’s existing GCF/B.39/19 Page 4 foreign exchange exposure and the range of foreign exchange risk mitigation instruments including hedged and unhedged options;
3. Also takes note of the need to strengthen the risk management capacity and internal treasury function of the GCF in order to implement a Foreign Exchange Management Framework for its financing to developing countries;
4. Requests the Secretariat to undertake further analysis and report to the Investment Committee on:
   1. The GCF’s existing foreign exchange exposure in its financing to developing countries;
   2. The risks and costs of different foreign exchange risk mitigation instruments and their likely implications on the design of such instruments, taking into account potential impacts on end beneficiaries of GCF financing, including hedged and unhedged options; and
   3. The progress of strengthening GCF’s risk management regarding foreign exchange exposure; and
5. Also requests the Secretariat, under the guidance of the Investment Committee, to develop a Foreign Exchange Management Framework for its financing to developing countries, cognizant of the work of the Risk Management Committee on foreign exchange risk and the need to ensure impactful investment across different regions, for consideration by the Board at its forty-first meeting.

The Board, having considered document GCF/B.39/08 titled “Audited financial statements of the Green Climate Fund for the year ended 31 December 2023”:

Approves the audited financial statements of the Green Climate Fund for the year ended 31 December 2023 as contained in annex I.

The Board, having considered document GCF/B.39/Inf.11 titled “Reports from committees, panels and groups of the Board of the Green Climate Fund”;

(a) Notes the discussions to date of the Investment Committee regarding the “Review of the structure and effectiveness of the independent Technical Advisory Panel” and recognizes the evolving context of GCF work since the previous report was commissioned in 2023 such as the adoption of the Strategic Plan for the GCF 2024–2027;

(b) Requests the Secretariat under the guidance of the Investment Committee to commission a broader review of the function, governance and role of the independent Technical Advisory Panel in supporting GCF business and Board decision-making; and

(c) Also requests the Investment Committee to prepare terms of reference for such review of the independent Technical Advisory Panel for consideration and approval by the Board no later than the fortieth meeting of the Board, with a particular focus on ensuring an inclusive stakeholder engagement process

The Board, having considered document GCF/B.39/05/Rev.01 titled “Updated terms of reference of the Accreditation Panel”:

Approves the terms of reference of the Accreditation Panel contained in annex II to document GCF/B.39/05/Rev.01.

The Board, having considered document GCF/B.39/02 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   1. Simplified approval process funding proposal 038 titled “Climate Adaptation, Resilience and Engagement in Local Governments (CARE-LG)” by the Bhutan Trust Fund for Environmental Conservation, as contained in document GCF/B.39/02/Add.01;
   2. Simplified approval process funding proposal 039 titled “Integrated climate risk management for strengthened resilience to climate change in Buner and Shangla Districts of Khyber Pakhtunkhwa Province, Pakistan” by the World Food Programme, as contained in document GCF/B.39/02/Add.02;
   3. Simplified approval process funding proposal 040 titled “Climate Adaptation and Resilience in Thua Thien Hue Province Vietnam (CARe Hue)” by Agence luxembourgeoise pour la Coopération au Développement S.A. (Luxembourg Agency for Development Cooperation), as contained in document GCF/B.39/02/Add.03;
   4. Simplified approval process funding proposal 041 titled “ALBAdapt – Climate Services for a Resilient Albania” by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, as contained in document GCF/B.39/02/Add.04;
   5. Simplified approval process funding proposal 042 titled “Building climate resilience by linking climate adaptation and social protection through decentralised planning in Mozambique (LINK)” by Save the Children Australia, as contained in document GCF/B.39/02/Add.05;
   6. Simplified approval process funding proposal 043 titled “Upscaling “Naatangué” integrated family and village farms for a resilient agriculture in Senegal” by Centre de Suivi Ecologique, as contained in document GCF/B.39/02/Add.06/Rev.01;
   7. Funding proposal 232 titled “Jordan Integrated Landscape Management Initiative (JILMI)” by the United Nations Environment Programme, as contained in document GCF/B.39/02/Add.07;
   8. Funding proposal 233 titled “Community-based Agriculture Support Programme ‘plus’ (CASP+)” by the International Fund for Agricultural Development, as contained in document GCF/B.39/02/Add.08;
   9. Funding proposal 234 titled “Tonga Coastal Resilience” by the United Nations Development Programme, as contained in document GCF/B.39/02/Add.09/Rev.01;
   10. Funding proposal 235 titled “Mangroves for climate: Public, Private and Community Partnerships for Mitigation and Adaptation in Ecuador” by Conservation International Foundation, as contained in document GCF/B.39/02/Add.10;
   11. Funding proposal 236 titled “Basin Approach for Livelihood Sustainability through Adaptation Strategies (BALSAS)” by the International Fund for Agricultural Development, as contained in document GCF/B.39/02/Add.11;
   12. Funding proposal 237 titled “E-Motion: E-Mobility and Low Carbon Transportation” by Agence Française de Développement, as contained in document GCF/B.39/02/Add.12/Rev.01;
   13. Funding proposal 238 titled “Ecosystems-based Adaptation for resilient Watersheds and Communities in Malawi (EbAM)” by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.39/02/Add.13;
   14. Funding proposal 239 titled “Building Climate Resilience for Food and Livelihoods in the Horn of Africa (BREFOL)” by the African Development Bank, as contained in document GCF/B.39/02/Add.14;
   15. Funding proposal 240 titled “Collaborative R&DB Programme for Promoting the Innovation of Climate Technopreneurship” by Korea Development Bank, as contained in documents GCF/B.39/02/Add.15/Rev.01 and 18;
   16. Funding proposal 241 titled “Financing Mitigation and Adaptation Projects (FMAP) in Indian MSMEs” by the Small Industries Development Bank of India, as contained in documents GCF/B.39/02/Add.16/Rev.01 and 19/Rev.02; and
   17. Funding proposal 242 titled “Caribbean Net-Zero and Resilient Private Sector” by the Inter-American Investment Corporation, as contained in documents GCF/B.39/02/Add.17 and 20;
2. Approves simplified approval process funding proposal 038, submitted by the Bhutan Trust Fund for Environmental Conservation (BTFEC), for the amount of USD 10,000,000, in accordance with the term sheet agreed between the Secretariat and BTFEC and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
3. Also approves simplified approval process funding proposal 039, submitted by the World Food Programme (WFP), for the amount of USD 8,777,141, in accordance with the term sheet agreed between the Secretariat and WFP and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
4. Further approves simplified approval process funding proposal 040, submitted by Agence luxembourgeoise pour la Coopération au Développement S.A. (Luxembourg Agency for Development Cooperation), for the amount of USD 8,650,000, in accordance with the term sheet agreed between the Secretariat and the Luxembourg Agency for Development Cooperation and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
5. Approves simplified approval process funding proposal 041, submitted by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, for the amount of EUR 23,070,000, in accordance with the term sheet agreed between the Secretariat and GIZ and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
6. Also approves simplified approval process funding proposal 042, submitted by Save the Children Australia (SCA), for the amount of USD 23,500,000, in accordance with the term sheet agreed between the Secretariat and SCA and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
7. Further approves simplified approval process funding proposal 043, submitted by Centre de Suivi Ecologique (CSE), for the amount of EUR 9,050,089, in accordance with the term sheet agreed between the Secretariat and CSE and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
8. Approves funding proposal 232, submitted by the United Nations Environment Programme (UNEP), for the amount of USD 44,904,203, in accordance with the term sheet agreed between the Secretariat and UNEP and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
9. Also approves funding proposal 233, submitted by the International Fund for Agricultural Development (IFAD), for the amount of USD 39,000,000, in accordance with the term sheet agreed between the Secretariat and IFAD and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
10. Further approves funding proposal 234, submitted by the United Nations Development Programme (UNDP), for the amount of USD 22,656,409, in accordance with the term sheet agreed between the Secretariat and the UNDP and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
11. Approves funding proposal 235, submitted by Conservation International Foundation (CI), for the amount of USD 36,404,391, in accordance with the term sheet agreed between the Secretariat and CI and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
12. Also approves funding proposal 236, submitted by the International Fund for Agricultural Development (IFAD), for the amount of USD 39,500,000, in accordance with the term sheet agreed between the Secretariat and IFAD and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
13. Further approves funding proposal 237, submitted by Agence Française de Développement (AFD), for the amount of EUR 78,333,415 and USD 40,264,000, in accordance with the term sheet agreed between the Secretariat and AFD and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
14. Approves funding proposal 238, submitted by the Food and Agriculture Organization of the United Nations (FAO), for the amount of USD 42,808,151, in accordance with the term sheet agreed between the Secretariat and FAO and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
15. Also 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, funding proposal 239, submitted by the African Development Bank (AfDB), for the amount of USD 151,000,000, in accordance with the term sheet agreed between the Secretariat and AfDB and set out in document GCF/B.39/02/Add.21/Rev.01, and subject to the conditions set out in annex II;
16. Further approves funding proposal 240, submitted by Korea Development Bank (KDB), for the amount of USD 104,471,000, in accordance with the term sheet agreed between the Secretariat and KDB and set out in document GCF/B.39/02/Add.18, and subject to the conditions set out in annex II;
17. Approves funding proposal 241, submitted by the Small Industries Development Bank of India (SIDBI), for the amount of USD 215,600,000, in accordance with the term sheet agreed between the Secretariat and SIDBI and set out in document GCF/B.39/02/Add.19/Rev.02, and subject to the conditions set out in annex II;
18. Also approves funding proposal 242, submitted by the Inter-American Investment Corporation (IDB Invest), for the amount of USD 118,975,948, in accordance with the term sheet agreed between the Secretariat and IDB Invest and set out in document GCF/B.39/02/Add.20, and subject to the conditions set out in annex II;
19. Reaffirms that pursuant to annex IV to decision B.17/09 the Executive Director or his/her designee is authorized to negotiate and enter into legal agreements on behalf of 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
20. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the policy on fees and the general principles and indicative list of eligible costs covered under GCF fees and project management costs adopted by the Board pursuant to decision B.19/09.

The Board, having considered document GCF/B.39/07 titled “Consideration of funding proposals: Consideration of a request for changes in the scope of funded activity FP037 (“Integrated Flood Management to Enhance Climate Resilience of the Vaisigano River Catchment in Samoa”)”:

Approves, with respect to funded activity FP037 titled “Integrated Flood Management to Enhance Climate Resilience of the Vaisigano River Catchment in Samoa”:

1. The cancellation of the construction of flood walls along segments 2 and 3 of the Vaisigano River (activity 2.1), except for penstock protection walls that have already been financed and carried out under the funded activity;
2. The cancellation of the construction of flood wall extensions at Leone and Lelata bridges (activity 2.4), except for the flood wall extension to Leone bridge downstream that has already been financed and carried out under the funded activity; and
3. The cancellation of Lelata bridge upgrade (activity 2.3), including a cancellation of GCF proceeds in the amount of USD 15,282,008 that were allocated to activities 2.1, 2.3 and 2.4 of the funded activity.

The Board, having considered limited distribution document GCF/B.39/12 titled “Consideration of funding proposals: Consideration of a request for a change in the environmental and social risk category in respect of FP224 Renewstable Barbados Project”:

Approves the change of environmental and social risk category of FP224 from Category B to Category A as described in limited distribution document GCF/B.39/12.

The Board, having considered limited distribution document GCF/B.39/13 titled “Consideration of funding proposals: Extension of deadline in respect of SAP033 (Enhancing Climate Information Systems for Resilient Development in Sierra Leone)”:

Decides to extend until one (1) day after the last day of the forty-first meeting of the Board (B.41) the deadline for the submission by the accredited entity of a certificate or a legal opinion, in a 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 project, for the following approved funding proposal:

1. SAP033, titled “Enhancing Climate Information Systems for Resilient Development in Sierra Leone”.

The Board, having considered document GCF/B.39/10 titled “Guidance from the twenty-eighth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change: Co-Chairs’ proposal”:

1. Takes note of this report, including the actions to be undertaken by the Board and Secretariat in 2024 in response to guidance received from the Parties during the twentyeighth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, as contained in annex III; and
2. Requests the Co-Chairs, with the support of the Secretariat, to include an overview of actions taken by the Board and Secretariat in response to the guidance referred to in paragraph (a) above in the thirteenth report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change.

The Board, having considered document GCF/B.39/14 titled “Thirteenth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”:

1. Requests the Co-Chairs, assisted by the Secretariat, to finalize the “Thirteenth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”, presented in annex II to document GCF/B.39/14, taking into consideration the comments made and decisions taken at the thirty-ninth meeting of the Board, and submit the revised report to the United Nations Framework Convention on Climate Change secretariat, no later than 12 weeks prior to the twenty-ninth session of the Conference of the Parties, in accordance with decision 7/CP.20, paragraph 23; and
2. Also requests the Co-Chairs, assisted by the Secretariat, to develop an addendum to the “Thirteenth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change” capturing the progress and decisions to be made during the fortieth meeting of the Board and submit the addendum to the United Nations Framework Convention on Climate Change secretariat.

The Board, having considered document GCF/B.39/17 titled “Financing of results-based payments for REDD+”:

1. Decides to approve the “Principles for mainstreaming REDD+ results-based payments”, as set out in annex IV, as the guiding principles to be applied for developing a proposal to integrate a REDD+ results-based payments funding modality into the regular project and programme activity cycle of GCF;
2. Requests the Secretariat to prepare for the Board’s consideration and approval a proposal for integrating a REDD+ results-based payments funding modality into the regular project and programme activity cycle of GCF, consistent with the principles approved under paragraph (a) above, and building on consultations conducted following decision B.35/12, paragraphs (b) and (c), no later than the fortieth meeting of the Board;
3. Also requests the Secretariat to undertake open, inclusive and transparent consultations on the development of the proposal on the financing of results-based payments for REDD+;
4. Notes that four eligible concept notes for the Lao People’s Democratic Republic, Papua New Guinea, Uganda and Viet Nam, respectively, had been submitted under, and within the period of, the pilot programme for REDD+ results-based payments that was adopted by decision B.18/07 and were not able to be considered under the pilot programme due to the funding envelope approved for that pilot programme being exhausted; and
5. Decides on an exceptional basis to allow the four REDD+ results-based payments concept notes to be submitted as funding proposals under the pilot programme mentioned in paragraph (d) above, subject to the relevant review and due diligence to be carried out by the Secretariat for a funding proposal.

The Board, having considered document GCF/B.39/18/Rev.01 titled “Partnerships and Access Strategy”:

1. Recalls paragraph 31 of the Governing Instrument for the GCF which provides that the Fund will provide simplified and improved access to funding, including direct access, basing its activities on a country-driven approach and will encourage the involvement of relevant stakeholders, including vulnerable groups and addressing gender aspects;
2. Confirms that in line with the Strategic Plan for the GCF 2024–2027, significantly improving access to GCF resources represents a core operational commitment of GCF for the period 2024–2027, noting the urgency of climate change and consultations with stakeholders on GCF accessibility;
3. Takes note of document GCF/B.39/18/Rev.01 titled “Partnerships and Access Strategy” and the views expressed by the Board members during the thirty-ninth meeting of the Board; and
4. Requests the Secretariat to take into account comments made on document GCF/B.39/18/Rev.01 titled “Partnerships and Access Strategy” during the thirty-ninth meeting of the Board in developing policy proposals, in consultation with the Board and/or its committees, for Board consideration.

The Board, having considered document GCF/B.39/11 titled “Enhancing coherence and complementarity”:

1. Welcomes the efforts made on the draft action plan in annex V as a contribution to enhancing coherence and complementarity between the multilateral climate funds and within the international climate finance architecture;
2. Requests the Secretariat to coordinate with the other multilateral climate funds to reflect the Board’s comments and observations in the further refinement of the multilateral climate funds draft action plan; and (c) Also requests the Secretariat to update on progress in the development of the draft action plan as part of its reporting on the Operational Framework on Complementarity and Coherence.

The Board, having considered document GCF/B.39/16 titled “Independent Evaluation of Green Climate Fund’s Energy Sector Portfolio and Approach: Final Report”:

1. Recalls paragraph 60 of the Governing Instrument for the GCF and the importance of “an operationally independent evaluation unit as part of the core structure of the Fund”;
2. Notes some Board members’ concerns with factual inconsistencies and inaccuracies in the evaluation report;
3. Invites members and alternate members of the Board to consider the findings and recommendations of the following evaluations and to provide any comments no later than 30 September 2024:
   1. Independent Evaluation of Green Climate Fund’s Energy Sector Portfolio and Approach; and
4. Requests the Independent Evaluation Unit to append the response matrix of comments received to the evaluation report no later than 30 October 2024 to inform future relevant Board discussions.

The Board, having considered document GCF/B.39/06 titled “Independent Evaluation of the GCF’s Investment Framework: Final Report”:

1. Takes note of the findings and recommendations in the independent evaluation of the GCF’s investment framework undertaken by the Independent Evaluation Unit;
2. Notes the Secretariat’s management response to the evaluation report as presented in document GCF/B.39/06/Add.01;
3. Requests the Investment Committee to further consider the independent evaluation of the GCF’s investment framework, including its findings and recommendations, as well as the Secretariat’s management response, and submit its recommendations to the Board for consideration;
4. Also requests the Independent Evaluation Unit to submit a management action report to the Board no later than one year following the Board’s consideration of the recommendations made by the Investment Committee.

The Board, having considered document GCF/B.39/09 titled “Dates and venues of upcoming meetings of the Board”:

1. Expresses appreciation for the offers from Mongolia, Papua New Guinea, and Tajikistan to host a meeting of the Board;
2. Recalls and confirms that the fortieth meeting of the Board will take place from Monday, 21 October to Thursday, 24 October 2024, in the Republic of Korea;
3. Decides that the forty-first meeting of the Board will take place from Monday, 24 to Thursday, 27 February 2025, in the Republic of Korea;
4. Also decides that the forty-second meeting of the Board will take place from Monday, 30 June to Thursday, 3 July 2025 in a location outside of the Republic of Korea to be decided further by the Board upon recommendation by the Secretariat; and
5. Further decides that the forty-third meeting of the Board will take place from Monday, 27 to Thursday, 30 October 2025, in the Republic of Korea.