B.07/06: Fund’s financial risk management and investment frameworks: Investment framework

The Board, having reviewed document GCF/B.07/06 Investment Framework:

  1. Adopts the initial investment framework of the Fund, as contained in Annex XIV;
  2. Decides that the Fund’s initial investment framework will reflect the Fund’s theme/activity- based resource allocation system as laid out in decision B.05/05;
  3. Requests the Investment Committee to submit the following for consideration to the eighth Board meeting, with technical support from the Secretariat and other stakeholders and taking into consideration recommendations from the Private Sector Advisory Group, before the Fund approves funding proposals:
    1. Definitions for activity-specific sub-criteria and a set of activity-specific indicators, taking into account the Fund’s initial investment framework, the Fund’s initial result areas and initial results management framework, and decisions B.05/05, B.06/07 and B.05/03 as well as subsequent decisions on additional result areas for adaptation;
    2. Minimum benchmarks for each criterion, taking into account the best practices of other institutions;
    3. Identification and comparison of methodologies, that enable the Secretariat to assess the relative quality and innovativeness of comparable proposals in comparable circumstances, including through a survey, for the application of the sub-criteria mentioned in paragraph (c) (i) above in the selection of proposals;
  4. Requests the Secretariat to prepare a document for the eighth Board meeting that considers the additional support, expert advice and/or additional structures that are required to facilitate the work of the Secretariat in the assessment of proposals against the activity-specific criteria and the work of the Investment Committee;
  5. Decides 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.