B.08/03: 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: Assessment, including gap analysis, of institutions accredited by other relevant funds

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.